Charitable groups in Arizona often hold fundraising events where they serve alcoholic drinks. Many organizers find it tough to understand the state’s liquor laws for these events.
Questions come up about when a special event license is needed and how to handle spirituous liquor properly.
Since June 24, 2017, Arizona requires nonprofits to get special event licenses for serving or auctioning alcohol at charity events. This law helps groups follow clear rules set by the Arizona State Liquor Board.
In this blog, you will learn what types of licenses exist and what steps your nonprofit must take to stay legal while raising funds with alcohol sales or auctions. Keep reading to find out how these rules can make your next fundraiser smooth and lawful.
Table of Contents
Key Takeaways
- Since June 24, 2017, Arizona requires nonprofits to get special event licenses for serving or auctioning alcohol at charity events under HB 2337.
- Two licenses exist: On-Sale Special Event License for serving drinks on-site and Off-Sale Special Event License for auctions or raffles of unopened bottles.
- Nonprofits must follow venue-specific rules; unlicensed sites need local approval before applying to the Arizona Liquor Board. Licensed venues can apply directly.
- Alcohol must come from approved sellers like wholesalers, farm wineries, or microbreweries; donations are allowed but controlled by law.
- Charities must keep clear sales records and earn minimum revenue shares: at least 25% from on-site alcohol sales and 75% from off-site auctions involving alcohol.
Overview of Arizona’s New Liquor Laws for Charities
Arizona’s new rules for charitable events took effect recently, changing how groups get special event permits through the Arizona Department of Liquor Licenses and Control. These updates impact various types of liquor licenses, making it easier for charities to host events while following state alcohol regulations.
Implementation date and purpose
The new liquor laws for charities began on June 24, 2017. These rules clarify how nonprofits can serve alcoholic beverages at fundraising events. The law aims to keep alcohol service safe and legal under Arizona Revised Statutes Title 4.
HB 2337 sparked these changes. It helps organizations follow proper alcohol regulations without risking unlawful acts. The Arizona Department of Liquor Licenses and Control guides groups on special event liquor permits to meet the state’s standards.
“Clear rules make it easier for charities to raise funds safely and legally.”
Types of special event licenses
Arizona offers two kinds of special event licenses for charities. Each license serves a specific purpose and opens different doors for fundraising activities.
| License Type | Purpose | Key Features |
|---|---|---|
| On-Sale Special Event License | Allows serving alcohol for consumption at the event | Alcohol can be served and consumed on-siteIdeal for charity dinners, galas, or festivalsSupports events hosted at both licensed and unlicensed locations |
| Off-Sale Special Event License | Permits auction or raffle of alcohol in original containers | Alcohol cannot be opened or consumed at the eventSupports fundraising through auctions, raffles, or salesAllows up to 50 bottles for wine or distilled spirits pulls |
Application Process for Special Event Licenses
Applying for a special event license in Arizona means working with the liquor enforcement division and following the Arizona Revised Statutes Title 4. Each venue has its own steps to meet, so be ready to submit all required documents on time.
License types and requirements
Charitable groups in Arizona must secure specific licenses for events with alcohol. Each fundraising event requires its own license, either on-sale or off-sale. Here’s a quick summary of the types and what they need:
| License Type | Purpose | Key Requirements |
|---|---|---|
| On-Sale Special Event License | Allows sale and consumption of alcohol on event premises | Letter of Agreement from venue ownerDiagram showing licensed areaEvent date and hours specifiedMust be tied to a charitable fundraising event |
| Off-Sale Special Event License | Permits sale of alcohol for consumption off the premises | Letter of Agreement from venue ownerDiagram showing licensed areaSpecific event date and hoursStrictly for charity fundraising |
Venue-specific application process
Arizona’s rules for charity liquor events change depending on the venue. These steps explain how nonprofits apply for special event licenses based on location.
- Sites without a liquor license, like warehouses or private lots, must first get approval from the city or county where the event happens.
- Local government offices review these applications and may require extra permits or safety checks before sending the request to the Arizona Department of Liquor Licenses and Control.
- Venues that already have a liquor license, such as bars or restaurants, allow nonprofits to skip local approval and apply straight to the Arizona Liquor Board.
- The Liquor Board uses standards from Arizona Revised Statutes (A.R.S.) Title 4 and Arizona Administrative Code (A.A.C.) Title 19, Chapter 1 to process these requests.
- Nonprofits hosting private events with no admission fees or food charges typically do not need any special event license.
- Applications must include detailed info about alcohol sourcing; only approved wholesalers, distillers, or vintners under the three-tier system are allowed.
- Organizations should check if they qualify as special event contractors to meet all legal drinking age rules and avoid dram shop liability issues.
- The University of Arizona’s student code of conduct can influence events held on campus properties overseen by the Arizona Board of Regents.
- Any permit granted outlines limits on hours and requirements for revenue tracking to comply with alcohol policy and regulations.
Alcohol Sourcing and Handling
Charities in Arizona must get alcohol from licensed sellers like distributors or wholesalers. The new rules allow some flexible options for buying and storing spirits during events.
Approved sources of alcohol
Alcohol for charitable events must come from approved sources. This keeps things legal and clear under Arizona law.
- Wholesalers and producers can donate alcohol. They follow rules set by the Arizona state legislature and the Colorado Department of Revenue as a model.
- Farm wineries have permission to supply wine. These small vineyards fit within laws like the Colorado liquor code for specialty drinks.
- Microbreweries may provide beer or other drinks. Their donations support local production without breaking prohibition laws.
- Personal donations from individuals are allowed. People cannot get paid except for tax benefits related to internal revenue code rules.
- Donations must align with title 4 basic and management training standards. This ensures safe handling at events, often coordinated with Caritas Law Group, P.C., for compliance.
- Alcohol can come only from listed sources on special event licenses. These licenses cover fraternities/sororities, residence life functions, and events approved by risk management services.
- The new rules mirror bulletin 16-08 guidelines but add more flexibility for wine pulls or similar charity fundraisers.
- Governor Hickenlooper’s policies inspired some changes in donation limits and documentation requirements to ease event planning without losing control over alcohol use.
Legislative changes and allowances
The Arizona Legislature passed HB 2337, allowing special event licensees or contractors to order, buy, or accept alcohol donations. This change gives more flexibility for charity events.
Groups can now run a wine pull or distilled spirits pull with up to 50 bottles under this law.
If the event takes place where no liquor license exists, the special event licensee or contractor must manage all pouring of drinks. The Arizona Secretary of State approved these rules to help charities raise money while keeping safety in mind.
This update fits within abor policy and aligns with SB18-067 standards overseen by the dean of students at some venues.
Rules and Regulations for Alcohol Service
Pouring drinks at events means following clear rules from the Arizona Department of Liquor Licenses and Control. Event organizers must keep detailed sales records and share profits as set by law.
Dispensing at licensed and unlicensed locations
Dispensing alcohol at different locations has specific rules depending on the license status of the venue. Arizona’s new laws clarify how charities can serve drinks at events, whether the site holds a liquor license or not.
| Location Type | Alcohol Dispensing Options | Details |
|---|---|---|
| Licensed Location | Option 1: Retailer License in Nonuse Status | Special event licensee manages all alcohol sales. Retailer suspends their license temporarily. |
| Licensed Location | Option 2: Retailer Serves Under Own License | Retailer handles all alcohol sales. Special event licensee has no role in serving or selling. |
| Licensed Location | Option 3: Retailer Serves Under Special Event License | Retailer serves alcohol, but sales occur under the special event license. Special event licensee doesn’t participate in serving. |
| Licensed Location | Option 4: Split Area Service | Retailer serves alcohol purchased from wholesalers. Special event licensee serves donated alcohol separately. |
| Unlicensed Location | Special Event Licensee or Contractor Dispenses All Alcohol | All alcohol must be served by the special event licensee or their contractor. No retailer involvement allowed. |
Revenue division and documentation requirements
Moving from rules about serving alcohol, it’s key to understand how charities must handle their money and paperwork. Charities need clear plans for sharing income and keeping records during liquor events.
- Charities selling alcohol on-site must get at least 25% of their total sales revenue from those drinks.
- For off-site events like auctions or wine pulls, charities have to earn 75% or more of their gross income from alcohol sales.
- Nonprofit groups must receive no less than 25% of all money made from selling liquor.
- At auctions or raffles involving alcohol, nonprofits are entitled to at least 75% of the gross profits.
- Up to 25% of auction earnings can go toward related costs, but these expenses must have proof like receipts or contracts.
- All spending tied to auctions needs solid documents such as invoices or agreements for transparency.
- Arizona law does not set minimum prices based on wholesale alcohol costs, giving charities flexibility in pricing during consumption or auctions.
- Records of sales and expense documents should be kept well; they help meet legal obligations and support smooth audits.
Compliance and Operational Considerations
Charities must secure the right permits and stick to set hours for serving alcohol. They also need to follow Arizona’s liability laws closely to keep events safe and legal.
Permits and standard operating hours
Events must follow state rules for alcohol permits and serving times. Standard hours run from 6:00 a.m. to 2:00 a.m. This schedule applies whether the event is at licensed or unlicensed sites.
If the venue lacks a liquor license, organizers need formal approval from local officials before applying to the Arizona Department of Liquor Licenses & Control. This step ensures all legal clearances are in place well ahead of time.
Liability laws and compliance guidelines
Charitable groups must follow strict rules during special events where alcohol is served. These rules help keep guests safe and make sure the event meets state laws.
- Charities need to obey standard server liability laws under Arizona law at all times during events. This means servers must not serve alcohol to minors or visibly intoxicated people.
- The Arizona Department of Liquor Licenses and Control sets clear compliance guidelines that all charities hosting events must follow.
- Special event permits do not remove the responsibility for legal liability if a guest causes harm after drinking at the event.
- Documentation of alcohol sales and distribution must be accurate and available for review by regulators.
- Serving hours are restricted by permits, and charities cannot serve alcohol outside those approved times.
- Venues without a liquor license hosting charity events need to secure proper special event licenses before serving any alcohol.
- Staff training on responsible alcohol service is encouraged to reduce risks associated with consumption at charitable functions.
- Failure to meet these compliance standards can result in fines, penalties, or loss of future licensing opportunities for the organization.
Related Post:Â Fundraising with Alcohol in Washington
Conclusion
Arizona’s new laws make fundraising with alcohol clear and fair. Nonprofits can now get special event permits easily, whether serving drinks onsite or auctioning bottles. These rules let groups source alcohol from trusted sellers and even accept donations without extra fees.
With set hours for serving and clear payout rules, charities can focus on raising funds, not red tape. For more help, check out the Arizona State Liquor Board website; it offers guides to keep events smooth and legal.
Embrace these changes—they open doors to better events that support great causes in your community.
FAQs
1. What are the key changes in Arizona’s new liquor laws for charities?
Arizona’s new liquor laws now let charities sell alcohol at events more easily. They have clearer rules on permits and how to handle sales during fundraisers.
2. How do these new laws help charity groups in Arizona?
The laws make it simpler for charity groups to get licenses and serve alcohol at their events. This helps them raise money without confusing paperwork or delays.
3. Are there limits on how much alcohol charities can sell under the new rules?
Yes, the law sets clear limits on alcohol amounts and sale times to keep things safe while still letting charities run successful events.
4. Do charity volunteers need special training to follow these liquor laws?
Charity volunteers must know the rules about selling and serving alcohol safely. Some training may be required to make sure they follow all state guidelines well.
Ellis Carter is a nonprofit lawyer with Caritas Law Group, P.C. licensed to practice in Washington and Arizona. Ellis advises nonprofit and socially responsible businesses on corporate, tax, and fundraising regulations nationwide. Ellis also advises donors with regard to major gifts. To schedule a consultation with Ellis, call 602-456-0071 or email us through our contact form.