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EXREN' ICI ITUiRE OF'IAVVFUL GAMBLING PIROC�EE,DS 43 Aft Payment of reasonable costs inc�urire�d in complying with the performing Of annual audi" ts Payment, of real estate taxes and assessments on licensed gambling II e�mses wholly owned by the licensed organization; 0 0 0 If approved by, the board,, construction, improvement, expansion, maintenance, and repair of athletic fields and, outdoor ice rinks and appurtenances, owned by the organization, or public agency. 18 Where Do Lawffil Purpose Contributions Go A Organlizations" net piro,fits from gambling in 1988i were over $78 million, and I they actually spent almost $1,68 million for lawful purposes. In this section, we cxamin,e, what types of lawful, Purpose expenditures organizations have made. We then separated the, apprlom"'mately, 19,000 contributions into 48 categories of expenditure.20 We examined, over $2,4.3 million in contributions in our sam- ple., We then extrapolated, the results, to estimate the distribution of lawful purpose expenditures, between categories in 19�818.21 In addition,, we examined 100 randomly selected contributions from different organizations more closely. We examined the check, verified that the named * 0 recipient rceei'ved the donation, and examined the minutes of the meeting where the donation was approved. 1'7' Minn Slat, 349.12(11 (a). 18 in Laws (1989 First Special Session) Chapter 1. Article 1,3,, Section 1. 19 nes�e were the most current tax returns available at the time we sampled (August - September 1989). 20 Appendix C presents a description, of the categories involved in our detail of lawful purpose expend i- tu,res. 21' We wei,gjhted based, on the percentage of contributions, in our sample that went to each category and the type and size oforganization. Based on the weighted, percentage we, allocated lawful purpose contribu- tions in, calendar year 1%8 into the categories we used. -