We have a small group of homebrewers who are researching the idea of starting a nano brewery as a nonprofit. We would be structured as a charity and all profits would go to a slate of local charities. I have found one brewery in Colorado that may be operating along these lines and have reached out to them. Does anyone on this forum know of any nonprofit breweries that I could contact?
Thanks!
I am going to preface this by saying I’m not a lawyer or tax advisor and have no experience starting a business, brewery, or nonprofit.
You should also look at the differences between a non profit and a not for profit and what types of documentation are required and how the TTB would interact with that type of brewery.
4 Hands in St. Louis has a beer called City Wide that donates $1 from every case to specific charities picked at the beginning of the year.
You may also want to hit up Ryan Holt at Old Standby that colabs with breweries to create charity beers through Brewlanthropy.
Thanks for the response and the information and ideas you provided.
Have you asked the Colorado brewery how it separates the charitable mission from day-to-day brewery operations? Their structure, board duties and local licensing path may show which parts would transfer to your state.
I’m not sure which brewery in Colorado this might be (Brewability?) but this can be complicated because the brewery has to run along strict rules to maintain its non-profit status, especially for tax purposes. It’s a structure rife with problems because the creators can’t ever get their equity back out of it, have limited opportunities to get paid out of the brewery (if that is a concern) and the brewery can never be sold. If one of the creators wants out, they just walk away with nothing to show for it. Well intentions today may not last forever.
A number of breweries here in Colorado and elsewhere make significant charitable contributions which is an option. Two22 locally donates $2.22 from each taproom pint to charitable organizations. A little easier to have a for-profit entity take tax deductions for donations than run the whole business as a non-profit. Two22 was launched by a homebrewer so the owner might be a good resource.
Thanks for the additional input.
Black Star in Austin, Texas operated as a cooperative for 14 years before they had to close. Drink — Black Star | Austin Brew Pub
You might consider that model. I visited in 2019. They were doing well before the pandemic and their owner-members, if you can track them down, might have advice on what to do and what not to do.