Alcohol Fundraiser Auctions & Raffles

A guide for retailers, alcohol manufacturers, wholesalers, agency liquor stores, nonprofit and tax-exempt organizations, and the public.

A nonprofit or tax-exempt organization may hold an auction or raffle of alcoholic beverages at fundraising events. Beverages that are raffled or auctioned must remain sealed in their original packaging when the organization delivers them to the winner.

Selling or Serving Alcohol at the Event

Events where the non-profit organization wishes to sell and serve alcohol on non-licensed premises, must:

  • Be catered by an on-premises alcoholic beverage licensee; or
  • Apply for a special event permit.

Alcohol may be consumed on the premises only if the event is catered or a special permit has been obtained and approved. Alcohol sold at the event for consumption may not be taken home. Alcohol must be taken home if it was won as a raffle or auction item; it may not be consumed at the event.

Limit: No more than four events per organization, per calendar year, are allowed where alcoholic beverages are raffled or auctioned.

Raffle & Auction Rules

Allowed

Alcoholic beverages used for a raffle or auction may be:

  • Donated by a licensed retailer, an agency liquor store, a licensed beer, wine, or distilled spirits manufacturer, or a member of the public.
  • Purchased from a licensed retailer, an agency liquor store, or a licensed beer, wine, or distilled spirits manufacturer.
  • Purchased by the organization that has been issued a special permit from the Cannabis & Alcohol Regulation Division (CARD), from a licensed wholesaler or distributor for not less than the ordinary price.

Not allowed

  • Proceeds from the raffle or auction of alcoholic beverages may not go to anyone who provided the alcoholic beverages.
  • Raffle tickets may not be sold to any person under 21 years of age.
  • Auction bids may not be received from any person under 21 years of age.
  • Donations of beer and table wine from a wholesaler or distributor.

For an auction or raffle held at an on-premises licensed business, alcoholic beverages present solely for a fundraising event is not considered a violation of 16-3-301(1) or 16-6-303, MCA.

Online and In-person Auctions

Alcohol and alcohol-type items may be auctioned at your virtual event. For example, you may auction a gift card to a brewery for three growler fills, gift baskets with alcohol in them, etc.

When attendees collect items they have won:

  • Delivery: The alcohol items may be delivered. Both the delivery driver and the individual receiving the alcohol items must be at least 21 years of age.
  • Pickup at the event address: The alcohol items may be picked up at the address of the event. The individual picking up the alcohol items must be at least 21 years of age.

Key Terms

Auction
The sale of an item or items, which may include alcoholic beverages, whereby the item for sale is sold to the highest bidder at the bid price. An auctioned item or items may have a reserve price.
Raffle
An event in which a nonprofit or tax-exempt organization sells tickets, and each ticket gives the purchaser of the ticket the chance to win a prize, which may include alcoholic beverages, with the winner determined by a random drawing.
Original packaging
The sealed container in which a manufacturer packages its product for retail sale. It includes bottles, cans, kegs, and growlers, but does not include lines or piping carrying the product from a manufacturer’s premises to a retailer’s premises.

Legal References

All licensees must comply with all Federal and Montana alcoholic beverage laws and rules. See section 16-3-316, 16-4-111, 16-4-204, 16-4-301, MCA and ARM 42.12.128

Updated April 2024. Please note the information in department communications may have been modified, superseded, or made obsolete by changes in federal or state law or the Administrative Rules of Montana. To verify the current validity of any Department of Revenue communication, please contact us at DORCARDEducation@mt.gov.