It is commonplace for not-for-profit (“NFP”) organisations to engage in fundraising strategies to assist them in achieving their objectives. Organisations that achieve fundraising success are those able to generate “buy-in” from the community, appeal to the community’s interests and/or to their sense of compassion, and tailor their fundraisers to comply with legal regulations.
Regulatory approvals are pertinent when an NFP organisation seeks to fundraise through the sale of alcohol. While often an easy way to generate the “buy-in” required for fundraising successes, when the sale of alcohol is not appropriately licensed there are significant risks to the NFP.
If seeking to generate funds through the sale of alcohol as a one-off event or through their regular activities, NFPs should ensure they do so in a way that is compliant. This article walks through some of the main avenues through which NFPs might seek to use alcohol to fundraise in Queensland.
Regulation of Alcohol in Queensland
The sale of liquor in Queensland is governed by two major laws:
- Liquor Act 1992 (Qld) (the “Liquor Act”); and
- Wine Industry Act 1994 (Qld).
The Liquor Act is of particular importance to NFP entities, as it is the primary legislation governing exceptions for NFPs fundraising through alcohol sales.
The NFP Exemption
The Liquor Act may permit an NFP an exemption from the requirement to be licensed for the sale of alcohol for specified one-off events. This exemption may apply:
- If the event meets the definition of a “fundraising event”;
- If all net proceeds from the liquor sales will be used to benefit the community;
- The sale of liquor is not the main purpose of the event (i.e. the sale is “ancillary to the fundraising event”);
- The liquor is only sold between 7.00am and 12.00am midnight on days that do not include Christmas Day, Good Friday, or prior to 1.00pm on Anzac Day; and
- The liquor is sold by an adult in open containers for consumption at the event, and such sale will not create an unsafe environment at the event.
What is a “Fundraising Event”?
The Liquor Act defines “fundraising event” as an event/occasion that:
- Is held primarily for the purpose of raising funds for the benefit of the community; and
- Is either a one-off small regional show, or another one-off event or occasion starting and finishing on the same day.
Further Requirements
Further eligibility requirements apply to this NFP exemption. These relate to the nature of the organisation (for example, it cannot be a “criminal organisation”) and to the past conduct of its executive officers (e.g. that they are not disqualified from holding liquor licences/permits or have not been breached particular sections of the Liquor Act or particular terms of any licence or permit).
Organisations seeking to rely on the NFP Exemption should further ensure that there is a high level of oversight over the sale of alcohol at the fundraising event. The exemption will not apply in a variety of situations contemplated by the Liquor Act, such as:
- where alcohol is sold to minors or unduly intoxicated persons;
- where the event encourages excessive or rapid consumption of alcohol; or,
- where the sale of liquor occurs on licensed premises or premises over which a liquor permit is in force.
Alternative Licensing Arrangements
Where the NFP or its event do not meet the above criteria, or where the sale of alcohol will occur more frequently than just a one-off event, the NFP may need to consider obtaining a liquor permit or licence. When seeking to apply for the below licences/permits, NFPs should be aware of the unique eligibility requirements under each category, any additional restrictions to the area in which they can serve alcohol, and that some categories may require staff/volunteers to be appropriately trained in the Responsible Service of Alcohol (“RSA”).
- Community Liquor Permits
An NFP might seek this permit if they are seeking to sell liquor on a one-off or temporary basis, and in circumstances where the sale is occurring on unlicensed premises. Such a permit will often be sought where the nature of the NFP or its planned event does not quite qualify for the NFP Exemption (for example, where the NFP seeks to undertake fundraising activities on a more regular and frequent basis – rather than through an isolated event).
- Community Club Licence
Where the organisation meets the definition of a “community club” and seeks to sell alcohol to its members, their guests, members of a reciprocal club and visitors, it may seek to obtain a community club licence.
- “Community – Other” Licences
Where the NFP operates in the form of an unincorporated or non-proprietary club, the NFP may be eligible for a “Community – Other” licence. Typically, these licences allow the club/association to sell liquor to its members and their guests for a total number of hours as specified by the Commissioner (up to 25 hours per week) and are more beneficial for clubs seeking to engage in more frequent fundraising activities involving the sale of liquor.
Office of Fair Trading Fundraising Licences
A reminder that organisations undertaking fundraising in Queensland (including through the sale of alcohol) for particular charitable or community purposes must hold a current fundraising licence issued by the Queensland Office of Fair Trading.
If you are seeking to organise a fundraising event for your not-for-profit organisation, the experienced team at Corney & Lind Lawyers can help you with the legal and regulatory requirements. Contact our friendly staff today on (07) 3252 0011 or send us your enquiry here.
NOTE: Vocare Law posts articles for general information purposes only. These articles are not intended as, and should not be taken as, being professional legal advice. If you have a query that is legal in nature, Vocare Law recommends that you seek professional legal advice tailored to your specific circumstances.
This article was written by Jackson Litzow & Simon Mason.
