A strong brewers' guild/association can be an effective voice for promoting the interests of all brewers in a given state or region. Whether promoting local beer or fighting for favorable laws and lower excise tax rates, the collective voice of an guild/association can speak louder than that of individual brewers alone.

Guilds/associations are also a great forum for networking among brewers of all sizes.

More than half of the US states have some form of brewers' guild/association. Their contact information is presented on the Find a Guild page. For those states without a formal organization, this guide will walk you through some of the steps toward starting a state guild/association.

Organizational Meeting

The first step in forming an organization is determining the level of interest among your state's brewers. A successful guild/association requires a commitment from brewers to pull together for the common good. A great way to test the level of interest is to hold an organizational meeting to discuss the proposed guild/association. Hold your meeting at a central location where the greatest number of brewers from around the state can attend. Invite every brewer in the state. Chances are that there will be a core group of leaders who emerge at the meeting, and may be excellent choices to form a steering committee in charge of initial work until a board of directors can be elected by the membership.

Determine a Mission and Structure

Once you know there is sufficient interest in forming a guild/association, you will need to determine its mission. Will you exist solely for promotional purposes? Will you take a strong advocacy role in state politics? Or, will you be a combination of both?

Next, you need to determine the structure of the guild/association. Will it be all volunteer staff or will you have some paid staff? If you are going to have any paid staff, there are additional paperwork requirements that you will need to contact your state's Department of Revenue to learn about.

Initial Paperwork

Before you can begin collecting dues and doing business as a guild/association, there are federal and state registration requirements you must follow to obtain tax-exempt status. Consulting an attorney on these issues is strongly recommended as requirements will vary from state to state.

First, you must obtain a Federal Employer Identification Number (EIN), even if you will not have any paid staff. This is like a Social Security Number for your guild/association. Banks require an EIN for setting up an account. You can file form SS-4 online at www.irs.gov.

Most brewers guilds/associations fall under section 501 (c)(6) of the Federal Tax Code. This is the designation for trade associations and business leagues. While online filing for your EIN, download Publication 557: Tax-Exempt Status for Your Organization. It will contain information and forms required for obtaining 501 (c)(6) status.

Next, you will want to check with your state's Attorney General's office/Department of State to find out any particular state requirements.

Another document you will need to file is your articles of association or bylaws. This document spells out how business will be conducted by your guild/association, the size and election of a board of directors, and how the guild/association will be funded. Again, the advice of an attorney with respect to these issues is essential. View an example of guild bylaws by visiting Oregon Brewers Guild: Bylaws.

Compliance With Antitrust Laws

In addition to making sure that your guild/association receives tax-exempt status, your guild/association must comply with the antitrust laws, which consist of federal and, potentially, state laws. Generally speaking, the antitrust laws encourage appropriate collaborative efforts (such as a brewers guild/association) to promote products, exchange innovative ideas, and attempt to influence government policy.

Nevertheless, the antitrust laws generally forbid conduct among competitors that unreasonably restrains trade. In the guild/association setting, members should avoid any conduct that might lead to an inference on which members have agreed to set terms. These would be competitively-significant items such as prices, discounts, rebates, output, credit terms, customer allocations, boycotts of customers or distributors, and the like. This is because guild/association members are likely to be competitors with one another, and agreements among competitors of these types could lead to serious antitrust liability.

If any guild/association activities involve sensitive, competitively significant topics like those described above (price, discounts, etc.), members should refrain from addressing those topics without prior approval from an attorney. Guild/association members must exercise common sense when participating in meetings or other guild/association activities to avoid any perception that the guild/association is engaged in conduct that could run afoul of the antitrust laws.

Membership Classes

Some items to consider when crafting your bylaws are the types of membership classes you will maintain and the dues for each class of membership. All brewers guilds/associations, obviously, contain brewery members.  But, some also recruit associate members or allied trade members. These are suppliers to the brewers who want to forge a stronger relationship with the state's brewers.

Some guilds/associations have added retail members, like pubs, restaurants, and stores that sell beer, who want to be identified with the state guild/association. Some have enthusiast members (beer lovers) who want to be associated with the guild/association. Two examples of enthusiast membership groups are the Oregon Brewers Guild's S.N.O.B. (Supporters of Native Oregon Beer) program and the Michigan Brewers Guild’s Beer Nut program.

It is important to include specific information for each class of membership; that is, an unambiguous definition of the class that enumerates the class criteria and spells out voting rights.

Your Board of Directors

Because most guilds/associations do not start out with a paid staff member, your board of directors is a very important group. These are the people who will do the bulk of the work in organizing events and programs. The board should be elected by a vote of all brewery members with representatives from breweries of all sizes.

From within the board, you will elect officers, such as president and vice president.  You may also want to elect a secretary, responsible for taking meeting minutes and communicating the board’s work to the membership, and a treasurer, responsible for keeping track of finances.

Outside of the board of directors, you may want to consider forming committees to handle programs and projects such as events, membership recruitment, and watching the state legislature for bills affecting your membership.

Paying for Your Guild/Association

Dues for each class of membership are a subject of great debate among many guilds/associations. Dues need to be high enough to fund the activities of the organization, but not so high as to discourage membership. Remember, the more brewers involved in your guild/association, the stronger the collective voice.

In a state where most breweries are the same size, a flat rate will likely work for brewers' dues. But in a state with breweries ranging from small brewpubs to large regional breweries, you may want to consider a sliding scale based on production.

Associate-member, retail-member, and enthusiast-member dues, likewise, should be set to encourage participation.

To help keep dues low, you may want to pursue other funding sources for your guild/association. These may include state grants that are available for groups promoting in-state products or tourism, holding beer festivals, or hosting other events.

Getting Together and Spreading the Word

Meetings and communication are key to the success of any brewers' guild/association. Monthly or quarterly meetings help brewers stay up-to-date on issues affecting membership and any activities. They also create great networking opportunities for brewers and a chance for associate members to meet the brewers.

The frequency and location of your meetings will be determined by the situation in your state. But, holding meetings around the state at various member breweries is a great way to foster communication and cooperation.

You will also need a way to communicate outside of meetings. A newsletter, whether monthly or quarterly, will serve this purpose well. You will want a phone and e-mail list for contacting members in a hurry when situations, such as a proposed tax increase, arise.

Consider maintaining a guild/association website where you can communicate with your membership and the public about guild/association activities and the importance of the state's beer industry to the local economy. A web site is also a great way to promote your members' beers and breweries to beer lovers within and from outside your state.

How the Brewers Association Can Help

The Brewers Association is committed to helping your state guild/association not only get formed, but also thrive. Pete Johnson, BA Programs Manager, works with guilds on development issues and liaison activities. There is also a guild listserve to facilitate communications between guilds.