Cocktails for a Cause by B&B Beverage Management

Alabama Legal Requirements for Donated Alcohol

Alabama provides several ways for product to be donated to non-profit organizations. The determining factor to how your product can be donated is fully decided by the event location and what, if any, type of liquor license exists.

Below are the three scenarios in which alcohol may be donated for an event, and the specific steps and processes of how the product must be donated. Please determine which scenario applies to you so we can format your event in the proper legal channel. Start your Donated Alcohol Application

 

Scenario 1 In this scenario, there are two situations with this scenario that will provide two different answers. 

  1. If you plan on selling drink tickets or tickets to attend the event, a liquor license is required. You may apply for your free Non-Profit Special Event Liquor License with your local ABC Board licensing office. You must apply for the license at least 25 days prior to your event.
  2. If you don't plan on selling drink tickets or tickets to attend the event, then the only resource that you can receive donated alcohol from is a private Retailer, such as your local package store or grocery store. This would also mean that if a random person decided to come to your event, you would be required to serve them as long as they are able to be legally served.
    • Distributors/Wholesalers can only donate alcohol to a liquor license, so in this situation of this scenario, you would not be able to receive any donated product from a distributor.
    • Manufacturers/Suppliers can donate a certain amount of alcohol, but only to Non-Profit Special Event Liquor Licenses. In this situation of this scenario, you would not be able to receive any donated product from a manufacturer. 

Definitions
Year-Round Liquor License: A liquor license held 365 days per year, such as the Hoover Met.
Non-Profit Special Event License: A liquor license obtained by bonafide non-profit organizations that have submitted a liquor license application to the ABC Board within 25 days of the event and received approval and been issued a liquor license. 
Manufacturer/Supplier: The company that actually makes the alcohol (breweries, wineries, distilleries), such as Tito's Vodka, Good People Brewing, or Redmont Vodka. 
Distributor/Wholesaler: The company that distributes and delivers the alcohol from the manufacturer to the retailer, such as Alabama Crown, RNDC, or Gulf Distributing Company. 
Retailer: The company that sells the alcohol to the consumer for either on- or off-premise consumption, such as Johnny's Package Store, Walmart, or Buffalo Wild Wings. 

Scenario 2 In this scenario, all alcohol must be donated by the distributor directly to the Liquor License Holder, such as Vulcan Park & Museum in Birmingham. i.e. If you're having your event at Vulcan Park where B&B holds a Year-Round Liquor License, then all donated alcohol must come from the distributor and go directly to B&B for that license. 

Important Notes

  • Manufacturers/Suppliers are NOT permitted to donate to a Year-Round Liquor License and can only donate directly to a Non-Profit Special Event Liquor License.
  • Donated alcohol must come from the Distributor/Wholesaler and be donated to the liquor license holder with appropriate documentation showing that the alcohol has been provided for that liquor license at a zero dollar amount.
  • The Distributor is NOT permitted to give the Donated Product to anyone except for the liquor license holder. i.e. The Distributor can't give the alcohol to a member of the non-profit to bring to B&B or to the event. 
  • Any alcohol leftover must stay with the liquor license holder can't go to the host of the event.
    • ABC Rules & Regulations on this Scenario
    • 20-X-9-.02 (b) Beer Wholesale Invoice Record Requirements for Donated Product.
    • 20-X-9-.02 (b) (3) Beer Wholesale Donations Providing at Zero-Cost as Gifts or Promotional Product for Bonafide Non-Profits.
    • 20-X-9-.03 (b) Table Wine Wholesale Invoice Record Requirements for Donated Product.
    • 20-X-9-.03 (b) (3) Wine Wholesale Donations Providing at Zero-Cost as Gifts or Promotional Product for Bonafide Non-Profits.
  • Liquor Distributors may donate to a liquor license holder and must do so by purchasing the Donated Bottles from the ABC store and write on the receipt which liquor license name and license number for which it is being donated to.

Definitions
Year-Round Liquor License: A liquor license held 365 days per year, such as the Hoover Met.
Non-Profit Special Event License: A liquor license obtained by bonafide non-profit organizations that have submitted a liquor license application to the ABC Board within 25 days of the event and received approval and been issued a liquor license.
Manufacturer/Supplier: The company that actually makes the alcohol (breweries, wineries, distilleries), such as Tito's Vodka, Good People Brewing, or Redmont Vodka.
Distributor/Wholesaler: The company that distributes and delivers the alcohol from the manufacturer to the retailer, such as Alabama Crown, RNDC, or Gulf Distributing Company.
Retailer: The company that sells the alcohol to the consumer for either on- or off-premise consumption, such as Johnny's Package Store, Walmart, or Buffalo Wild Wings.

Scenario 3 In this scenario, a Non-Profit Special Event Liquor License has been obtained for the event. There are a couple of different methods of receiving donated alcohol.

Important Notes

  • Non-profit liquor licenses are free of charge, but do take up to 12 weeks to process. The application must be submitted at least 25 days before the event to your local ABC Board licensing office.
  • Alcohol may be donated by a non-licensed person, such as a guest or donor that provides alcohol from their personal collection to be auctioned to benefit the organization.
  • Manufacturers/Suppliers of wine and beer may donate certain amounts of beer and wine to your event. The product can only be used for that event and must be returned to the manufacturer at the end of the event, to be disposed.

Definitions
Year-Round Liquor License: A liquor license held 365 days per year, such as the Hoover Met.
Non-Profit Special Event License: A liquor license obtained by bonafide non-profit organizations that have submitted a liquor license application to the ABC Board within 25 days of the event and received approval and been issued a liquor license. 
Manufacturer/Supplier: The company that actually makes the alcohol (breweries, wineries, distilleries), such as Tito's Vodka, Good People Brewing, or Redmont Vodka. 
Distributor/Wholesaler: The company that distributes and delivers the alcohol from the manufacturer to the retailer, such as Alabama Crown, RNDC, or Gulf Distributing Company. 
Retailer: The company that sells the alcohol to the consumer for either on- or off-premise consumption, such as Johnny's Package Store, Walmart, or Buffalo Wild Wings. 

B&B Specific Rules for Donated Product

If approved to received donated product for your event, there are strict internal processes and policies on how to accomplish getting the donated product to your event legally.

The process of legally obtaining donated product is not simple. It requires a lot of time and several people for planning, coordination, and paperwork therefore, fees are associated with the process. Start your Donated Alcohol Application

Rules

  1. All product must be donated within the legal limits of the law and ABC Rules & Regulations.

  2. All product must be donated within B&B internal policies.

  3. The Alcohol Donation Process must include a reasonable timeline to facilitate the donation process, as determined by B&B.

Required Fee Structure
There are fees associated to your event having donated alcohol due to the large amount of time and coordination required to legally facilitate the process.

Distributor Fees:

  • $25 fee per Distributor (whether 1 product or 50 different products are being donated by the same Distributor).

Pickup Fees:

  • $40 fee for B&B picking up the Donated Product. ($25 administrative fee and $15 fuel surcharge)
    • $50 fuel surcharge if roundtrip is > 50 miles and < 75 miles.
    • Anything over 75 miles will need to be quoted on a case by basis.

Handling Fees:

  • 1-50 Donated Items - $50
  • 51-100 Donated Items - $100
  • 101-150 Donated Items - $150
  • 151-200 Donated Items - $200
  • 201-250 Donated Items - $250
  • 251-300 Donated Items - $300
  • 300+ Donated Items - $400

Required Additional Gratuity:

  • Additional Gratuity will be added at a rate of 15% of the would-be Donated Product. This fee is take care of the staff working the event, since they would typically receive gratuity based on the products purchased for the event.

B&B Logistical Processes

Each Scenario below will show the specific process and role that B&B will play for facilitating your Donated Alcohol.

Please see the Legal Requirements above if you have any questions on this process.

Scenario 1 Process
The event doesn't have a license and no license is expected to be obtained.

  1. If you're charging for entry to an event, a Non-Profit Special Event License is required, and would then put you in Scenario 3.
  2. If you're not charging anything at all for the event, then private retailers and others may donate or bring product to the event.
    1. B&B does not assist in this process and any provide for donated product must be on site when B&B arrives to service the event.

Please see the Legal Requirements above if you have any questions on this process.

Scenario 2 Process
The event host plans on having donated alcohol at the event, where B&B has a year-round liquor license.

  1. The event host and the distributor should discuss the products to be donated prior to filling out the form below.
  2. The event host will provide contact information and also connect the distributor to a B&B representative.
  3. The distributor and a representative from B&B will then communicate and coordinate the delivery of the product to the licensed premises to accompany the legal paperwork.
  4. The product will be delivered to B&B or picked up by B&B,  If the product is not able to be delivered by the distributor, B&B will pickup the product for a small fee to account for gas and labor.
  5. When the event is over, the product will remain at the venue and can't leave with the event host.

Please see the Legal Requirements above if you have any questions on this process.

Scenario 3 Process
The event host plans on having donated product at the event, where the event host has obtained a Non-Profit Special Event Liquor License.

  1. Whether the product is donated by the distributor or manufacturer, a paper trail must exist with a receipt of the donated product along with showing the license number and name on the liquor license.
    1. If the product is donated by the Distributor, the product stays with the special event liquor license and can't be used for other licensed events.
    2. If the product is provided by the Manufacturer, only 31 gallons may be donated and the remaining product must go back to the manufacturer after the event to be disposed of.
  2. B&B doesn't assist in this process, since the liquor license is in the non-profit's name.  If you would like assistance in this process, we can quote those services for you alongside your existing invoice for our services.

Apply to Have Donated Product at Your Event

Fill out the form below if you'd like to have alcohol donated at your event and you meet the legal requirements above.

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