By For years, New York alcohol brands that wanted to say “a portion of proceeds supports…” on their labels ran into a wall at the New York State Liquor Authority (“NYSLA” or “SLA”). That has now changed.
On October 22, 2026, the SLA announced that brand labels may identify a charitable organization and the share of sales or proceeds it will receive. The new policy is set out in Advisory 2026-5, dated September 24, 2026, and took effect immediately.
The short answer: New York alcohol labels may now state that a specific amount or portion of a product’s sales or proceeds will go to a named charity. The charity must be a bona fide organization whose donations are tax-deductible for federal income tax purposes. The brand must submit documentation of the charity’s eligibility, the donation arrangement, and permission to use the charity’s name or logo, and the SLA will still review the label for misleading statements.
Why Charitable Labels Were Off-Limits Before
The old policy came from Section 111 of New York’s Alcoholic Beverage Control Law. Section 111 bars anyone not disclosed to the SLA and named on a license from using that license or holding an ownership, controlling, or other prohibited financial interest in the licensed business.
The SLA had read that rule to cover charitable pledges. Its view was that promising a charity part of a product’s proceeds amounted to sharing the business’s profits with an outside organization not listed on the license. As a result, the SLA refused brand label registrations that said a portion of sales would benefit a named charity.
What Changed
In Advisory 2026-5, the SLA revisited that reading. It pointed to its earlier Advisory #2017-6, which already allows licensees to donate alcohol from their own inventory to qualifying charities. The SLA concluded that, for Section 111 purposes, there is no meaningful difference between donating inventory and donating cash: in both cases the licensee is giving away its own assets.
The question the SLA now asks is whether an arrangement gives an outside organization ownership, control, or a prohibited financial interest in the business. A charitable donation reference on a label will not, on its own, be treated as evidence of that kind of interest. The SLA also said that the size or length of a donation will not, by itself, decide whether an arrangement is permissible.
The change is part of Governor Hochul’s EXPRESS NY initiative to remove outdated regulatory barriers.
What the SLA Requires
1. A Qualifying Charity
The organization must be a bona fide religious or charitable organization; a bona fide educational, fraternal, or service organization; or a bona fide organization of veterans or volunteer firefighters. In every case, contributions to it must be deductible for federal income tax purposes.
2. A Truthful, Specific Statement
The label may state that a specified amount or portion of the product’s sales or proceeds will go to a named charity, such as a fixed amount per bottle or a percentage of sales. The statement must be truthful and not misleading, and the SLA will continue to review labels under its rules on deceptive statements (Part 84 of its regulations).
3. Supporting Documentation
When you submit a brand label registration with a charitable reference, the advisory requires:
- Reasonable proof that the organization qualifies, such as an IRS determination letter, Form 990, or New York’s CHAR500 filing;
- A statement explaining the relationship between the licensee and the charity;
- A statement describing the donation arrangement, including how long it will last and the exact amount or formula used to calculate the donation;
- Documentation that you are authorized to use the charity’s name, logo, or other identifying marks, if they appear on the label; and
- A copy of any required federal label approval (COLA).
4. A Separate Look at the Arrangement
Label approval is not the end of the inquiry. The SLA reserves the right to investigate the underlying arrangement if the facts suggest the charity has an ownership interest, control, or another prohibited financial interest in the business. If so, the arrangement can still be treated as an unlawful use of the license under Section 111.
Other Rules to Keep in Mind
Advisory 2026-5 resolves the New York licensing question. It does not override other rules that apply to the same label or promotion.
- Federal label review. The advisory requires charitable statements to comply with applicable federal requirements. For products that need a COLA, TTB reviews every statement on the label, including charitable references, and prohibits statements that are false or misleading.
- Other states. A label sold outside New York must also meet each other state’s rules, which may treat charitable references differently.
- Charitable sales promotion laws. New York and many other states regulate “commercial co-venturer” arrangements, in which a business advertises that purchases will benefit a charity. These laws may require a written agreement with the charity, specific disclosures, or filings, separate from alcohol rules.
- Trade practice and tied-house rules. Keep the arrangement between your company and the charity. Involving a retailer, for example by tying donations to a particular bar’s sales or an event a retailer hosts, can raise separate tied-house and trade practice questions.
- Keeping the promise. Once a label says a donation will be made, the brand needs to make it, in the stated amount and for the stated period, and keep records to show it. If the arrangement ends, labels still in the market can become misleading.
- Advertising. Social media posts, shelf talkers, and other ads that repeat the charitable message should match the label and the actual arrangement.
For questions related to alcohol beverage law, food labeling, regulatory compliance, or related matters, please contact Lindsey Zahn at Lindsey Zahn P.C. to learn more about how we can assist your business.
DISCLAIMER: This blog post is for general information purposes only, is not intended to constitute legal advice, and no attorney-client relationship results. Please consult your own attorney for legal advice.
This post is for general information purposes only and is not legal advice. Reading it does not create an attorney-client relationship.
