Donations to Nonprofits with Special Occasion Licenses
We are quickly approaching our busy season for special occasion license applications. We would like to share a few reminders about donating alcohol to a nonprofit organization (NPO) who has a special occasion license. A special occasion license allows a NPO to sell alcohol at an event that is open to the public. If the NPO is registered as a 501©3 or 6, they may accept donated alcohol from a winery, brewery, distillery or a spirits distributor.
Only non-retail licensees may donate alcohol to NPOs. If an NPO approaches you for donations of manufacturer-sealed bottles of alcohol, you may only donate under the following conditions:
- You are licensed as a winery, brewery, distiller, or a spirits distributor. Retailers cannot donate bottles of alcohol.
- You have verified the NPO holds a special occasion license, or are in the process of applying for one. You may not provide the alcohol until you see a copy of their special occasion license.
- You have verified that they are a 501©3 or 6 with the IRS. Remember that any type of NPO can apply for and receive a special occasion license, but they must be a 501©3 or 6 to get donations of alcohol.
- Wineries, breweries, and distilleries may only donate alcohol that the licensee manufactures themselves.
- If you are a spirits distributor, you may donate spirits that you distribute on behalf of the manufacturer.
- The same rules apply if you are donating a gift certificate for a “tasting” experience.
What can a licensed alcohol retailer donate to a special occasion licensee?
Licensed retailers may only donate gifts that are not related to alcohol. Donating alcohol directly to another retailer (which a NPO is when they hold a special occasion license) is prohibited by law.
Reminder that if an NPO would like to have a fundraising event at a liquor licensed premises and the NPO would like to sell their own alcohol, they are required to have a special occasion license. Alcohol from the licensed premises must be kept separate and cannot be sold to the event participants during the hours of the special occasion license.
