Should alcohol be served during board meetings, retreats, staff parties and other internal events at a nonprofit? Is this normal practice? If so, who should pay for it?

This simple-sounding question raises a set of thorny questions that each organization seems to answer separately. Let me start with what is normal based on my observations; I know of no research in this field.

It is certainly not normal or acceptable practice, in my experience, to have alcohol cloud the clear decision-making and thought processes needed at a board meeting. However, I have often seen wine made available if there is social time or a meal after the meeting.

I see the same practice at retreats. After all or most of the agenda has been completed, a small amount of alcohol is sometimes made available, or people congregate in the hotel bar. If everyone is staying overnight, people feel freer to have a drink than if they are driving home. I think people usually take responsibility for their own bar bills.

At good-bye and holiday parties, the presence of alcohol is normal to many Canadian adults. Some would feel that the event was incomplete without a drink. Very few abuse the situation by taking more than one or two. On the other hand, I have heard that organizations that stopped including alcohol did not receive the complaints they expected, or would have received from an earlier generation.

It is much less normal to include alcohol in situations with children present. It is usually not acceptable to have it available in organizations with a focus on substance abuse, safe driving, safe pregnancies, or the horrible effects of accidents while drunk, such as traumatic head injury. In other words, the ethical decision-making includes consideration of the mission and of how an organization’s stakeholders will react.

Another factor is the increasing number of Canadians whose faith is offended by the consumption or presence of alcohol. For example, some followers of Islam do not feel welcome or comfortable around alcohol. I find that organizations with a focus on diversity also have a focus on good food rather than drink.

I suspect too few organizations have consulted their insurance company about potential liability and how to minimize it if they want to make alcohol available. The laws and precedents vary by jurisdiction, so such a call would be very wise. If people might drive away from the event, tell the insurance company when seeking advice; even partial liability for a drunk driving accident could wipe out the organization’s funds. The insurer may recommend a cash bar, as that usually reduces the amount people drink, but the law may then require a trained bartender. Nonprofit directors must take risks into account, and protect their assets.

Most of the community events I now attend with people in casual clothes have little or no alcohol. Most of the nonprofit social events I attend where people are wearing business suits have alcohol available. I think the trend is away from alcohol even there, but slowly, and even slower – if at all – among nonprofits that are associated with the hospitality industry in any way. These would mostly be trade or professional organizations rather than charities. Luckily, there has been a strong trend towards responsible drinking, meaning just one or none at all at such events, if driving. And a growing number of Canadians seem to be on medications that are not compatible with alcohol.

Apart from the insurance concerns, the issue of who should pay relates to using all nonprofit resources towards achieving the mission. Some organizations feel that offering good food and wine helps them recruit good board members, or makes a thank you BBQ more meaningful to their volunteers. They may feel staff who work very hard all year should not be required to pay for the December party. In other words, they feel a small expenditure on alcohol is a good investment in mission achievement. Many others would disagree, or are operating so close to the line that expenditure on alcohol would be unthinkable. This discussion should be held at the board table periodically, with liability advice available.

The issue of reimbursing for alcohol costs in expense claims should also be discussed, so everyone knows in advance of making a claim. Many organizations do not reimburse for personal drinks, but may pay a claim that includes alcohol if an important stakeholder discussion is taking place in a restaurant.

To sum up, each organization must make its own decision about the availability of alcohol, but several factors are steadily decreasing its presence and consumption. There has been no outcry about providing free wine at social events, but I expect many could think of better uses, like staff benefits or raises, if the expenditure became at all significant.

Since 1992, Jane Garthson has dedicated her consulting and training business to creating better futures for our communities and organizations through values-based leadership. She is a respected international voice on governance, strategic thinking and ethics. Jane can be reached at jane@garthsonleadership.ca.

To submit a dilemma for a future column, or to comment on a previous one, please contact editor@charityvillage.com. For paid professional advice about an urgent or complex situation, contact Jane directly.