# Anoher "is it legal"



## JohnT (Jan 4, 2013)

OK, here is one for you lawyers out there...

Sorry to add another thread on this, but this is rather different and I do not remember ever seeing this question on any other post. 

Is it legal to donate homemade wine for a charity event? This has two scenerios...

1) Can I donate wine to a event with the intent of serving it to attendees?
2) Can I donate wine to an event so that it can be used as a "Prize". 

My pal is a member of the Lion's club. They have a "Casino" night where one gambles for points (not money) and then uses those points to enter silent auctions at the end of the night. I wonder if I can donate wine to be served to the attendees or if I can donate wine to be used as an item in the silent auction. 

I would hate to do this and have the Lion's club get into trouble!

johnT.


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## g8keeper (Jan 4, 2013)

JohnT said:


> OK, here is one for you lawyers out there...
> 
> Sorry to add another thread on this, but this is rather different and I do not remember ever seeing this question on any other post.
> 
> ...


 
well john, i am no lawyer, but if you would let me indulge you, i may be of some help via personal experience, that is at least if your state's liquor laws are the same or similar to those here in michigan....my parents belong to a "boat" club, here in michigan (yes, there is a reason why boat is in paranthesis), even though they do not own a boat....anyways, as i am aware through my parents, who are active members participating as board and committee members, any alcoholic beverages on premise, for serving, in own form or another, have to be bought, and owned by the club...for example: for a recent event, they had a little thing where members each put together a combination of foods and in some cases, drinks, that were from their culture, or had meaning to them in one way or another, and everyone went around to each table and sampled the offerings....my mother, being of Spanish desent, decided to make a sangria punch....she actually had to give the money to the club, and have them go out and buy the brandy and wine used to make the punch...granted, there was a charge at the door for the sampling event, so not sure if that is the reason or not....but i also know that my mom also wanted me to do a wine tasting event at the club as well, because they had had an actualy local winert come in and do one, and she felt my wines were better and felt i deserved to be able to exhibit mine as well...as it turns out though, because i am not a commercial producer, it was illegal and the idea was vetoed...now on your other part about donating to be part of auction, i am not sure, only bacause in a way, it is being purchased...on the other hand if it was being donated as a prize for a "raffle", i don't see why not....sorry for being so long winded....hope it helps at least....


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## JohnT (Jan 4, 2013)

Very interesting G8keeper, but to clarify, no money is used or exchanged in the auction. one bids using the points won at the tables.


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## g8keeper (Jan 4, 2013)

JohnT said:


> Very interesting G8keeper, but to clarify, no money is used or exchanged in the auction. one bids using the points won at the tables.


 
ok....but is there a "door charge" to get into this event???....i only ask, because that is where it can be a little tricky, because i think there are certain variances for "fundraising" events, but not positive...


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## Boatboy24 (Jan 4, 2013)

Is this event being held at a private residence, or at "the club". Assuming it's at the club, their liquor license (if they have/need one) probably comes into play, and therfore, state regulations do too. I would guess the state would frown upon serving wine that wasn't purchased by the club from a properly licensed producer/distributor.


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## ibglowin (Jan 4, 2013)

I know of one lawyer on the forum but I believe his specialty is in real estate law. Perhaps he can/will chime in.


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## GreginND (Jan 4, 2013)

No, it is not legal. I know of at least one winemaker who got in trouble for this. 

That being said there are not government officials being sent to monitor all charity events for illegal tax-free alcohol donations and auctions. Unless someone reports you the chances of the TTB catching you would be rather low. (disclaimer: I am not advocating you do this.)


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## GreginND (Jan 4, 2013)

You may be ok with sharing tasting of it at the event given there are not entrance fees in order to get in to taste. The TTB does allow you to take your wine to contests or organized events.

The whole issue is about taxes. Nothing even smelling like money making on tax-free alcohol is allowed.


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## Brew and Wine Supply (Jan 4, 2013)

We have a local civic club where we do an auction with money for a scholarship program. A local winemaker/attorney donates wine every year to the event. 
1- check with local laws
2- what are the chances of the event being busted by liquor controll?
3- see 1


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## tonyt (Jan 4, 2013)

I think I'll donate a bottle to the next Policeman's Ball for auction and see what happens. Not really. Yes I am. No. Maybe.

I actually I would think that the laws would be very strict and the enforcement very lax in most cases. I give my wine to church and fraternal auctions all the time and never think twice about it. I would however, think twice about supplying wine for an entire event or serving my wine to the public. FDA and local health departments would have as much or more to say about that. What about bringing home made wine to a church covered dish? Can of worms! Don't ask, Don't tell.


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## Dugger (Jan 4, 2013)

Our laws in Nova Scotia (Canada) may be different but I ran into this problem as well. I wanted to donate some wine to a fundraising dime auction so I called our provincial Liquor Control Board and was told that home made wine cannot be used as a prize at a fund raiser. I also asked about serving home made wine at similar events and was told that all liquor served at public events had to be done under a permit and that said permits required provincially sanctioned alcoholic products - what they sell or license.
I suspect many of your state laws may be similar.


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## jswordy (Jan 4, 2013)

In many states there are also laws that extend liability to you, the organizing entity and the venue if anyone who has partaken of alcohol served at a gathering then gets into a car wreck. It's called "Dram Shop" in some states. I'd be more worried about that. Insurance can be purchased to cover that possibility.

Here's a go at it: http://dictionary.law.com/default.aspx?selected=584

It's legally messy either way you use it in many states.


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## Dugger (Jan 4, 2013)

Jim- hadn't considered the liability issue - that's the last time I take wine to our lawn bowling club!!


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## GreginND (Jan 4, 2013)

Liability is the main reason our wine tasting group is a chapter of the American Wine Society. Our membership provides liability insurance for all our tasting events.


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## saramc (Jan 4, 2013)

It will depend on state laws. Like here in KY, as an amateur I can share my wine with friends, I can take wine to a friend's house to enjoy on their property, I can participate in wine competitions and it is ok if I have to pay a fee to enter competition. But I was told by my local agency that amateur winemakers cannot donate wine to charitable event, fundraiser, etc. regardless of what they want to do with it. Because my wine is for personal use and said use has to fall within the parameter of KY state law, and not all states handle it the same way.

In some states you cannot even gift a bottle to anyone, you cannot allow the wine to leave the premises from which it was made, and some states do not allow amateur winetasting events. Winepress US Winefest was not able to be held in CA years ago due to their state laws, you would have never believed it until it happened. Check out ' State Laws Regarding Home Winemaking', for the details via a link named 'blindmuscat.typepad.com/HomeStateLaw', which I could not format in any fashion so you could easily open it. 

A commercial, tax paying entity in KY can donate wine to a registered charity but only if that charity has the specific charitable event certificate on hand as issued by the state. It is proof to the donating company that the solicitation of said alcohol is approved by the state, and a copy goes to the donating entity. Last time I checked the cost was $100 to apply for said certificate. If the registered charity fails to have this form on hand and has donated alcohol on hand which is being sold/auctioned/door prize, etc., they can lose their charitable standing and be fined. But again, this varies state to state. Also, most states have a special event license which allows organizer to legally serve taxed alcohol, donated or purchased, when venue does not hold appropriate license--but that is another law and state defined.
I am appalled at the number of charitable/non-charitable youth organizations, schools, daycares, and school aged sports teams that solicit liquor donations---just goes against my better senses and seems like more appropriate donations could be sought.


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## Fabiola (Jan 6, 2013)

JohnT said:


> OK, here is one for you lawyers out there...
> 
> Sorry to add another thread on this, but this is rather different and I do not remember ever seeing this question on any other post.
> 
> ...



Here is a good article that may answer some of your questions:
http://www.csa-compliance.com/html/CSA-Articles/tips-for-tasting-room-staff-and-marketers.html


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## JohnT (Jan 7, 2013)

Thanks all, 

Seems like donating wine is more trouble than it is worth. I think I will simply donate money instead!

johnT.


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## Rocky (Jan 7, 2013)

Here is a little different situation. I have tried to contact the appropriate Ohio agency for an answer but after about 5 transfers to "another department," I gave up. In the neighborhood where I live (about 36 homes) we have an annual "Wine Tasting Party" where attendees pay a modest fee (usually $20 per person or $35 per couple) to cover the cost of the wine. Everyone is supposed to bring a snack of some kind that goes with wine. Bev and I have hosted this twice in the past ("Wines of Tuscany" and "Wines of Australia & New Zealand" were our themes) and we will again host it this year with the theme, "Wines of Powell, Ohio." I am going to ask the owner of a local "boutique" winery here in Powell and the owner of a full winery to participate along with some of my own wines. Paying the boutique and full winery is not a problem, but how (if at all) can I charge (only to cover the cost, no profit) of my wine? Any help on this would be greatly appreciated.


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## GreginND (Jan 7, 2013)

You can't charge for your wine - even the cost. The wine is made for your personal consumption.


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## Dugger (Jan 7, 2013)

Rocky - you could always charge a nominal fee for use of your premises!! No charge for the wine, of course!


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## JohnT (Jan 8, 2013)

GreginND said:


> You can't charge for your wine - even the cost. The wine is made for your personal consumption.


 
The point I was making is that I am not charging for the wine. The plan was to donate it.


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## GreginND (Jan 8, 2013)

JohnT said:


> The point I was making is that I am not charging for the wine. The plan was to donate it.



Yup, I was responding to Rocky. 

Still donating puts you at risk because you are responsible also for what they do with the wine (make money on it).


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## jswordy (Jan 8, 2013)

Dugger said:


> Rocky - you could always charge a nominal fee for use of your premises!! No charge for the wine, of course!


 
This sounds like a pending court case to me.


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