Throughout 2020 and into 2021, Marden-Kane has helped clients and non-profits work together for COVID-19 relief in their communities with commercial co-venture programs, also called “CCV Programs.” A CCV program is when a business partners with a non-profit organization to make donations of money, goods, events, products or services to benefit the non-profit’s cause. This type of cause-related marketing is regulated in many U.S. states, and may require that the business complete some sort of CCV filing or registration in the state(s) where the transaction is taking place. This is in addition to any federal, state, or local promotion laws.
Some examples of CCV programs for COVID-19 relief could be:
- A restaurant that asks customers to sponsor meals to people in a homeless shelter run by a non-profit.
- A retail brand that partners with a medical non-profit to donate a percentage of sales to medical bills for those the non-profit serves.
- A telecom company that donates internet services to an education non-profit so students working can attend classes remotely.
While these types of programs are well intentioned, not following local, state and federal laws could incur legal troubles, criminal penalties, and fines to both the for-profit and the non-profit business.
If you are a business looking into cause marketing, or a non-profit contemplating a deal with a business, check out our best practices article, Commercial Co-Ventures, CCV Filing and Cause Related Marketing and these resources:
- The National Council of Non-Profits: Commercial Co-Ventures and Cause Related Marketing
- CharityLawyerBlog.com: Charitable Solicitation Laws – Commercial Co-Venture
- Adler & Colvin: Are You in a Commercial Co-Venture
If you need help determining if you are in a commercial co-venture, or need help with CCV programs, CCV filing or CCV contracts, contact Marden-Kane and we can help!
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