Selling Homebrew for Charity

Discussion in 'Homebrewing' started by Eziel, Apr 20, 2015.

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  1. Eziel

    Eziel Pooh-Bah (2,109) Jan 31, 2013 Ohio
    Pooh-Bah Trader

    Our local school is turning 100 years old this September. A couple brew buddies and I were thinking about brewing 2-3 batches of beer for the occasion with a twist - bottle the beer in different size bottles, create nice labels and names that celebrate the history of the school and sell it as collectibles for the occasion - all at a 100% donation, proceeds going toward the centennial events and the school itself.

    We are in Ohio and like most states, it is illegal to sell beer without proper licensure, etc. but I wondered if all the profits were to go toward charity if that would work? The beer would be available for a "donation" where the price isn't really set, you just give what you think or what you'd like to donate. Sometimes for big centennial events like this, groups will sell commemorative bells, plates, quilts, programs, etc. but I thought a cool bottle of great beer would be a good alternative and I know it would make good money for the event.

    Thoughts, Information, Warnings, etc.? Thanks in advance!
     
    #1 Eziel, Apr 20, 2015
  2. wspscott

    wspscott Pooh-Bah (1,958) May 25, 2006 Kentucky
    Pooh-Bah

    Pretty sure that won't work from a legal POV.

    You could "donate" a "How to Brew" session and have some beer as a sample of what could be brewed.
     
    #2 wspscott, Apr 20, 2015
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  3. CurtFromHershey

    CurtFromHershey Initiate (0) Oct 4, 2012 Minnesota

    Yeah I can't imagine there's a legal way to do this. You could probably [***disclaimer*** I'm not an authority on this matter] offer it for free with a donation basket at your table, but you'd have to be comfortable with someone taking some and not donating a penny
     
    #3 CurtFromHershey, Apr 20, 2015
  4. bluehende

    bluehende Initiate (0) Dec 10, 2010 Delaware

    All of these laws will be local state laws. Many states are changing some aspects of home brew laws due to the popularity. I know in DE it is legal to donate home brew for charity. The charity can then charge admission. I am not sure if they can actually sell the beer specifically.
     
    #4 bluehende, Apr 20, 2015
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  5. GreenKrusty101

    GreenKrusty101 Initiate (0) Dec 4, 2008 Nevada

    Disclaimer: Not legal advice

    In Nevada almost anything goes, but if your state allows non-profit functions involving homebrew, I would think raffles/door-prizes involving homebrew wouldn't be all that different as long as the proceeds are all destined for non-profit charitible purposes.
     
    #5 GreenKrusty101, Apr 20, 2015
  6. billandsuz

    billandsuz Pooh-Bah (2,097) Sep 1, 2004 New York
    Pooh-Bah

    not sure if you plan to have the event at the school and the beer at the school. all the schools in my State are drug and alcohol free zones. there is no alcohol allowed on the premise. zero. so there is that to consider.

    I believe in general this is a bad idea. good intentions, but it seems you are just asking for a headache. just one MADD mom will ruin your year. who needs it?
     
    #6 billandsuz, Apr 20, 2015
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  7. Reneejane

    Reneejane Initiate (0) Jan 15, 2004 Illinois

    We donate homebrew to our church's annual fundraiser. We aren't receiving any money for the beer. it goes on the auction block, but the money paid to the church is actually a donation to the church. I think we're okay.
     
    #7 Reneejane, Apr 20, 2015
  8. Eziel

    Eziel Pooh-Bah (2,109) Jan 31, 2013 Ohio
    Pooh-Bah Trader

    I didn't do a good job of clarifying one thing - I have a business downtown and I was planning on just selling it here. Probably start a week or two in advance and people could just stop in, grab a bottle(s) and make their donation that way. We won't have any bottles at the school or at any of the functions. Thanks!
     
    #8 Eziel, Apr 20, 2015
  9. VikeMan

    VikeMan Grand Pooh-Bah (3,067) Jul 12, 2009 Pennsylvania
    Pooh-Bah

    Unless you have a local attorney (not some random guy on the internet) telling you this is okay where you live, I wouldn't do it.
     
    #9 VikeMan, Apr 20, 2015
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  10. Reneejane

    Reneejane Initiate (0) Jan 15, 2004 Illinois

    I'd agree with Vike on this one. What I was doing sounds significantly different from what you are planning.
     
    #10 Reneejane, Apr 20, 2015
  11. telejunkie

    telejunkie Savant (1,107) Sep 14, 2007 Vermont

    Hmmm...I think if you stage it as "Donations for School/Centennial event here" and that all donors of say $5 or more can have a free bottle of homebrew...maybe. But you are still giving away alcohol and many states can be fairly strict about the exchange of alcohol, so I wouldn't do anything without checking into legalities of it with someone in the OH liquor commission. I like wspscott's suggestion...maybe they could come over for a brew session and take home the bottled beer when it's finished...(?)
     
    #11 telejunkie, Apr 20, 2015
  12. HerbMeowing

    HerbMeowing Maven (1,295) Nov 10, 2010 Virginia
    Trader

    DAMM! (Drunks Against Mad Mothers)
     
    #12 HerbMeowing, Apr 21, 2015
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  13. pweis909

    pweis909 Grand Pooh-Bah (3,250) Aug 13, 2005 Wisconsin
    Pooh-Bah

    Internet beer forums are great places for doctors and lawyers to hang out and give free advice without the fear of malpractice. Just sit back until you hear the advice you seek. When Johnny Law or Death comes knocking, just share the link with them and shout "Read 'em and weep, suckers!"
     
    #13 pweis909, Apr 21, 2015
    Last edited: Apr 21, 2015
  14. GreenKrusty101

    GreenKrusty101 Initiate (0) Dec 4, 2008 Nevada

    I don't know anyone doing hard time for giving away homebrew to charities...but if in doubt, get a lawyer and help the economy. : )
     
    #14 GreenKrusty101, Apr 21, 2015
  15. bluehende

    bluehende Initiate (0) Dec 10, 2010 Delaware

    I think this is right on.
     
    #15 bluehende, Apr 21, 2015
  16. bluehende

    bluehende Initiate (0) Dec 10, 2010 Delaware

    I am not a lawyer nor stayed in a Holiday Inn last night. I would think this would be a big problem. You are actually selling the beer at a business then donating business cash to the charity. I would definitely get legal advice before doing this which would almost certainly cost more than the donation. Unless you home brew much bigger batches than I do.
     
    #16 bluehende, Apr 21, 2015
  17. hopfenunmaltz

    hopfenunmaltz Pooh-Bah (2,647) Jun 8, 2005 Michigan
    Pooh-Bah

    The best way is to donate a brewing lesson to the auction.
     
    #17 hopfenunmaltz, Apr 21, 2015
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  18. utahbeerdude

    utahbeerdude Maven (1,374) May 2, 2006 Utah

    I've done this several times in the past, and will be doing it again for an upcoming charitable auction.

    Give a person a beer... Teach a person to make a beer... blah blah blah.
     
    #18 utahbeerdude, Apr 21, 2015
  19. Eziel

    Eziel Pooh-Bah (2,109) Jan 31, 2013 Ohio
    Pooh-Bah Trader

    I reached out to the local ATF office who connected me to the TTB offices (Alcohol and Tobacco Tax and Trade Bureau). Spoke with Kent who connected me via email to Ramona Hupp, Beer Program Manager in the Regulations and Rulings Division. She provided a very thorough and easy to understand explanation that I have attached below.

    "As you may know, beer produced under the personal and family use exemption is provided under Federal law at 26 U.S.C. 5053(e) and the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations at 27 CFR 25.205. The intent of this Federal law is to permit individuals to produce their own beer for personal consumption without being liable for the Federal excise tax imposed on beer. Based on TTB’s interpretation of this law, it has provided in the past that home brewed beer may not be donated as such an action could be considered beer produced for commercial use and/or profit, which is outside the scope of the personal and family use exemption."

    Sounds like I might have to do a brewing lesson instead :slight_frown:

    Thanks for all the useful input @wspscott @CurtFromHershey @bluehende @GreenKrusty101 @billandsuz @Reneejane @VikeMan @telejunkie @HerbMeowing @pweis909 @hopfenunmaltz @utahbeerdude

    I wanted to include you in so you'd know the correct answer. Cheers and keep on brewing, EZ
     
    #19 Eziel, Apr 23, 2015
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  20. bluehende

    bluehende Initiate (0) Dec 10, 2010 Delaware

    Thanks for the followup update.

    This is in general my opinion on how most states view the laws. A couple of states have actually carved out exemptions for charity , but not many. In some states I could not even serve my beer to my BIL.
     
    #20 bluehende, Apr 23, 2015
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