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Alcohol at events related to your charity鈥檚 aims

You can sell alcohol as refreshments at an event or activity your charity is running that is directly connected to the charity鈥檚 aims, such as amateur sports fixtures or theatre performances, providing:

• the event is directly related to your charity鈥檚 aims, as they appear in your governing document
• the bar is only open because the charity activity is happening
• only guests, participants or spectators at the event use the bar

You may need to pay tax on the profits from trading from selling alcohol if the event is not directly related to your charity鈥檚 aims. But you won鈥檛 have to pay tax on profits you make from selling alcohol during charitable events. For example, an amateur sports charity could run a bar to serve participants and spectators during a charitable sports fixture.

Alcohol sales as a way of fundraising

You can also sell alcohol to raise funds at events, or in other ways that aren鈥檛 directly connected to your charity鈥檚 aims but you may have to pay tax on the profits. For example, a charity could run a beer tent at a local show.

Risks from selling alcohol

Selling alcohol might have a negative impact on your charity鈥檚 resources or reputation. For example, if a local pub objected or if your charity buys more alcohol than it can sell.

If the sale of alcohol presents a significant risk to your charity, you must run the bar through a separate organisation. For example, you could:

• form an independent club
• set up a new company that is owned by your charity
• get an existing company to run the bar for you

The relationship between the charity and the separate organisation has to be on a commercial basis - so the organisation might rent the space to run the bar from your charity. For example, a charity that puts on theatrical performances could open its bar to the wider community if it set up a separate company to run the bar.

This way of operating can be complicated to set up. HM Revenue and Customs provides advice on tax issues for charities with subsidiary trading companies. But you may need to get legal advice from or another organisation. For example, offer legal advice.

Licences and permissions to sell alcohol

You need an alcohol licence from your local authority to sell alcohol at an event. You may also need a temporary event notice.

Check for any restrictions on selling alcohol in:

• your charity鈥檚 governing document
• the property鈥檚 lease or title deeds

It鈥檚 also a good idea to check that:

• your neighbours and the local community don鈥檛 object to your plans
• having a bar doesn鈥檛 stop your charity meeting its other aims, such as running a youth club

Free alcohol at charity events

Your charity can give alcohol away at events or meetings without a licence, but you must make it clear that the value of the alcohol is not included in any ticket price or entrance fee.