07Charitable and Educational Purposes.No less than 100 percent of the net proceeds of a bingo game shall bedesignated and expended for charitable or educational purposes. Net proceeds means gross proceeds lessreasonable expenses incurred or paid in connection with the holding, operating,or conducting of bingo, including the following bona fide expenses, inreasonable amounts: (1) The purchase or rental of equipment necessary for conducting bingo andpayment of services reasonably necessary for the repair and maintenance ofequipment. (2) Payment of cash prizes or the purchaseof prizes of merchandise. (3) Reasonable rental or mortgage payment on the location at which bingo isconducted. (4) Insurance on the facilities and liability coverage, as is reasonablefor the operation of bingo. (5) Utilities. (6) Janitorial services. (7) The fee required for issuance or reissuance of a permit to conduct bingo. (8) Other reasonable expenses incurred by the permit holder, not inconsistent with this article. (Act 96–613, p. 966, § 8.)
Alabama Legal Code