Page 179 - Washington Nonprofit Handbook 2018 Edition

f. Tax Considerations

Lastly, there are federal tax considerations that require attention before an

exempt organization engages in a gambling activity. A useful summary is in IRS
Publication 3079, which can be found at http://www.irs.gov/pub/irs-pdf/p3079.pdf.

CHAPTER 50. Liquor and Cannabis at Nonprofit Events

Liquor and Cannabis in Washington is regulated by the Washington State
Liquor and Cannabis Board (“WSLCB” – http://www.lcb.wa.gov). Before hosting an
event where liquor is served, sold, or offered as a raffle prize, nonprofits should
review current Liquor and Cannabis Board rules. The Liquor, Cannabis,
Gambling…and Your Fundraising Event toolkit breaks down and charts the complex
rules for liquor, cannabis and gambling at fundraising events.

Serving liquor at an event can expose an organization to a wide variety of
risks. Before planning a party or any other activity involving liquor, consider
consulting with a knowledgeable insurance agent to review the coverages in place,
or needed. Venues where alcoholic beverages are served may also require
insurance and impose other conditions.

Banquet Permits: Nonprofit organizations that serve alcohol at events will
need to obtain a banquet permit from the WSLCB before serving liquor at an event.
Once the permit is issued, a WSLCB inspector or law-enforcement agent may visit
the venue during the event to determine that all requirements have been met
including the following:

• The event is by invitation only; it cannot be advertised or open to the
public.

• The liquor must be bought at full retail price from a Washington liquor
dealer or brought by the participants. Donated liquor may not be

served.

• While there may be a charge for attending the event, there cannot be
any separate charge for liquor; scrip or drink tickets may be provided
to attendees so that all participants share equally.

• Liquor may not be served between the hours of 2am and 6 am or to
anyone under 21 years old.

WASHINGTON NONPROFIT HANDBOOK -168- 2018