The Liberty Township Fire Department may no longer receive money -- and bingo players may no longer win money -- from Plaza Bingo.
According to the Indiana Department of Revenue, Plaza Bingo located on Walnut Street in Muncie and operated by Liberty Township Boosters Inc., will have to close its doors if it does not disburse $177,708 to another non-affiliated organization by the beginning of August.
The nonprofit organization Liberty Township Boosters Inc. broke the 90 percent rule. The rule states that if more than 90 percent of the organization's annual gross revenue, minus the prize payouts, comes from the charity gaming, then the organization is required to donate at least 60 percent of that amount to other organizations.
In the case of Liberty Township Boosters Inc., 100 percent of the gaming profits came from the bingo industry, deputy commissioner of the Indiana Department of Revenue Larry McKee said.
"I don't know what transpired," McKee said. "They needed other sources of income; anything you can think of."
Some of these other sources of income could have come from a bake sale, car wash, grant money or membership dues, McKee said.
After repeated attempts to speak in person and via phone, council members, Plaza Bingo workers, and the club's treasurer, Susan Lambert, refused comment for this story.
Cathy Henninger with the Indiana Department of Revenue said in a June 3 e-mail that the money is not missing; the boosters have not made the disbursement of funds required to keep their license.
Liberty Township Boosters Inc. discovered the miscalculation when it was renewing its license in May, McKee said.
"They just didn't have enough income from other sources," Janice Barton, supervisor of charity gaming/non-profit section of Indiana Department of Revenue, said.
Plaza Bingo's bingo sheet reads: "All proceeds go to the Liberty Township Fire Department."
Rick Compton, who has been the chief of the volunteer Liberty Township Fire Department on and off for the past 16 years, is aware of the club's need for the money.
"All the fire department does is receive funds from the agency," Compton said. "They pay our bills."
Compton said the department has been receiving money from the boosters for the past 11 years which has helped them to buy and maintain eight new and used fire trucks. One of those fire trucks is still being paid off.
The only other funding the fire department receives is from a chili supper, which raises between $4,000 and $5,000, and what little money is provided by the tax-payers, Compton said.
Liberty Township Boosters Inc. was given an extended license of 30 days at the beginning of June to disburse at least half the money, $88,854, to a non-affiliated, not-for-profit organization. If the disbursement is made, an additional 30 days will be granted for the second half, equaling 60 total days, according to the Indiana Department of Revenue.
Compton said the fire department is currently not receiving any money from the boosters, because it is all going to other organizations.
"They're (the boosters) just waiting to see if they can raise the money or not," Compton said.
The prices to play were $7 dollars in April at Plaza Bingo, Ball State student senior Sarah Redwine said. The cost to play on Tuesday night was $14.
Compton said he would still accept funding from the boosters if they remain open.
"We're working on a plan," Compton said. "We have to make other arrangements."
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