The following is a summary of the advisory the SLA adopted in September of 2026.

1. Charitable Donation References on Brand Labels (2026 Advisory)

• Policy Change under ABCL § 111: Historically, the SLA rejected brand label applications that mentioned proceeds benefiting a charity.
  
  
• Permissible Label Claims: Brand labels may now state that a specified amount or portion of sales/proceeds will be donated to a named bona fide charitable organization, provided the claim is truthful, not misleading, and compliant with SLA and federal regulations. A donation statement alone will not be treated as proof of an illegal interest.
  
  
• Mandatory Application Documentation: When registering a label that references a charitable donation, the applicant must submit:
  • Proof of Tax-Exempt Status: Documentation verifying qualification as a charity (e.g., IRS determination letter, Form 990, or state CHAR500).
  • Relationship Statement: An explanation of the relationship between the licensee and the charitable organization.
  • Donation Calculation Details: A statement detailing the donation terms, including its anticipated duration and the precise calculation formula (e.g., fixed dollar amount per container or percentage of sales).
  • Written Authorization: Documentation showing permission to use the charity’s name, logo, or identifying marks on the label.
  • Federal Approval: A copy of the required federal TTB label approval (COLA).
    
    
• Although wines with an ABV of 7 percent or more with a COLA do not need NY State label approval, the Authority nevertheless requires submission of the federal Certificate of Label Approval or exemption and any required appointment letter. If the label includes a charitable donation reference, the brand owner or agent must notify the Brand Label Unit and provide the foregoing information required.

Please bear in mind that while it is not in the Advisory, under New York Law Businesses engaged in cause advertising are classified as commercial co-venturers and are subject to mandatory written contract requirements, specific advertising disclosure obligations, post-campaign accounting duties.  

Executive Law §174-c provides, advertising of this type that will benefit a charitable organization shall set forth the anticipated portion of the sales price, anticipated percentage of the gross proceeds, anticipated dollar amount per purchase, or other consideration or benefit the charitable organization is to receive. 

There is also a requirement for a written contract with the charitable organization under §173-a.

Within 90 days after the termination of a sales promotion advertised to benefit a charitable organization, the commercial co-venturer must provide the charity with a formal accounting that states: (1) the number of items sold, (2) the dollar amount of each sale, and (3) the amount paid or to be paid to the charitable organization.

The charity must file information with the New York Attorney General regarding all commercial co-venturers it has authorized to use its name, including the names and addresses of those co-venturers, the financial terms of each contract, and a statement confirming whether the required accountings were provided.

Keven Danow is an attorney representing members of all three tiers of the Beverage Alcohol Industry and member of The Danow Group, 605 Third Avenue, New York, NY 10158.  (212 3703744). Website: thedanowgroup.com; email:kd@thedanowgroup.com