A. With respect to organizations exempted from payment of the bank and corporation tax by Section 23701d of the California Revenue and Taxation Code, all profits derived from a bingo game shall be kept in a special fund or account and shall not be commingled with any other fund or account. Those profits shall only be used for charitable purposes.
B. With respect to other organizations authorized to conduct bingo games pursuant to this chapter, all proceeds derived from a bingo game shall be kept in a special account or fund and shall not be commingled with any other account or fund. Proceeds are the receipts of bingo games conducted by an authorized organization not within subsection (A) of this section. Those proceeds shall be used only for charitable purposes except as follows:
1. The proceeds may be used as prizes.
2. A portion of the proceeds, not to exceed twenty percent of the proceeds before deduction for prizes, or two thousand dollars per month, whichever is less, may be used for the rental of property and for overhead, including the purchase of bingo equipment, administrative expenses, security equipment and security personnel.
3. The proceeds may be used to pay license fees.
(Ord. 1705 (part), 1995: Ord. 777 (part), 1977)