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Cause Marketing

charitable sales promotions
Cause Marketing

Understanding Charitable Sales Promotions: A Guide for Nonprofits and Businesses

Charitable promotions, also known as cause-related marketing or commercial c0-ventures (CCVs), are a powerful tool for nonprofits and businesses. These arrangements allow businesses to advertise that a portion of proceeds from the sale of goods or services will benefit a charitable organization. For example, a promotion might say, “When you buy our new app, 50% of the purchase price will go to the Zoo!”

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Taxable Nonprofits
Cause Marketing

Cause Related Marketing and Commercial Co-Venture Best Practices

Often companies are blissfully unaware that their charitable sales promotion is a regulated activity and are surprised to learn that there are regulations they must comply with. However, states have an interest in protecting consumers from false and misleading advertising. They also have an interest in protecting charities from being exploited. Accordingly, at least 20 states regulate such cause marketing offers which are referred to interchangeably as commercial co-ventures or charitable sales promotions.

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Charitable Solicitation Laws – Commercial Co-Venture

Generally, a commercial co-venturer is a person regularly and primarily engaged in commerce (other than in connection with raising funds for charities) who conducts a “charitable sales promotion.” Co-venturers are typically for-profit companies who engage in charitable sales promotions. Approximately twenty-one jurisdictions regulate commercial co venturerers.

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