Published: July 06, 2008 12:06 am      

Nonprofits can’t serve alcohol to general public

Liquor board edict could put fire halls out of business

In the face of escalating expenses in everything from fuel to fire trucks, the Barton Hose Company, like other nonprofit fire companies with liquor licenses, may face loss of revenue as result of a recent directive from the Allegany County Liquor Control Board.

The liquor board has imposed stipulations that all nonprofits with liquor licenses may no longer serve alcohol to the general public and only to members and associate members.

The directive has caused great concern at the Barton Fire Hall, the site of numerous community events year-round and weekly bingo games that foster money for the operating expenses of the Barton Hose Company.

Not being able to sell alcohol to the general public — such as visitors who gather at the fire hall for a community event, wedding reception or a family gathering after a funeral — could conceivably put the fire company out of business.

“We want to be perfectly clear that we understand that the liquor board has to follow the law and we agree with that,” said Stanley Broadwater, president and 28-year member of the Barton Hose Company.

However, requiring the fire company to submit its IRS 990 nonprofit organization form to the liquor board is puzzling to Broadwater.

“We don’t understand why the 990 form should be an issue for the liquor board,” said John Shuhart, the Barton company’s secretary-treasurer. He said the company keeps all required financial records and has never been out of compliance. It has even been audited favorably by the IRS.

A directive that members of the public can only be admitted and served alcohol if they purchase an associate member card at the liquor-board suggested fee of $5 per person is also a concern to the Barton fire officials.

“If the liquor board wants to keep out all people who are not members, that is an injustice. Last year, we held 33 events here and only three of them involved the sale of alcohol.

“We are here to provide a service to the community and our fire hall is also a Red Cross disaster evacuation center.

“This is a community building and without our building, there are a lot of events that would not go on,” said Broadwater.

Shuhart said the matter is quite simple. “We are here for the welfare of the fire department and the safety of the community. If they close our building, we are done. Our last fire truck cost $300,000.”

Beer and mixed-drink prices at Barton are virtually the same price as that of any privately owned business with a liquor license, its members said. The fire company gets no cut in costs when the goods are delivered.

However, nonprofit enterprises other than fire companies reportedly sell beer and drinks at a cost lower than the privately-owned bars and taverns.

“We’re not here to put anyone out of business. We are not here to tell the liquor board how to conduct its business. We just don’t understand what’s going on. We can’t afford to lose a nickel,” said Broadwater.

Shuhart said about one-fourth of the fire company’s budget is derived from bar sales and one-fourth from weekly bingo games, one-fourth from various community events, and the remaining from state and county revenue.

A further requirement that the fire hall submit in writing a request to conduct an event five days prior to the activity is equally puzzling, Broadwater said.

Broadwater, Shuhart and John Thomas, bar manager at the Barton fire hall, plan to attend a meeting to discuss the matter July 24 at the County Office Complex. The meeting with the liquor board and nonprofit representatives was requested by the Allegany County commissioners. Members of the District 1 legislative delegation have also been invited.

“We’re waiting to see what happens at this meeting,” said Broadwater. “We don’t want to clash with the liquor board.”

In Midland, Bob Knippenburg, past president and past chief of the Midland Fire Company, also expressed concern of the liquor board’s recent actions.

“There’s no question where the fire companies are spending their money. But what are the other nonprofits doing for the community? I think that is what the liquor board is looking at. That’s my opinion.”

Knippenburg said declining revenue at the county and state levels is also occurring with the volunteer fire companies.

“So we don’t know why the liquor control board is doing this. Our bar has been in business since before 1940 and all of a sudden this pops up. It doesn’t make any sense.

“When you’re out to grab all the nonprofits, there’s some you are going to hurt more than others.

“We have a lot of questions and there is a lot of confusion. Can we logically, under their laws, have a bingo game? Can we have a wedding reception? Dinners that are open to the public, like fish fries and wing nights?

“The liquor board has to find a way to preserve the current revenue of the fire companies that have taverns in Allegany County,” said Knippenburg. “Otherwise it will make it awful difficult and it may put us out of business.”

Contact Jeffrey Alderton at jlalderton@times-news.com.