At a Glance

Connecticut does not require formal registration for commercial co-venturers, but businesses must file a written agreement with the Department of Consumer Protection at least 10 days before starting any charitable sales promotion. The filing is free and submitted electronically to dcp.charitiesenforcement@ct.gov. Unlike many other states, Connecticut imposes no annual renewal requirements or surety bond obligations for commercial co-venture activities.

Commercial co-venture regulations vary significantly across states, with Connecticut maintaining specific registration and reporting mandates that protect both charities and consumers. When your business promotes that a portion of sales will benefit a charitable organization, you’re entering a regulated space that requires careful navigation. Failing to comply with Connecticut’s requirements can result in substantial penalties, potential legal action, and damage to your brand reputation.

Despite these risks, commercial co-ventures remain an excellent strategy for businesses looking to make a positive impact while boosting their marketing efforts. Connecticut’s regulatory framework actually helps ensure transparency and accountability throughout these partnerships.

This comprehensive guide walks you through everything you need to know about commercial co-venture compliance in Connecticut. From initial registration requirements to contract filings, financial reporting obligations, and ongoing compliance measures—we’ve got you covered with the essential information to keep your cause marketing campaigns both successful and legally sound.

Understanding Commercial Co-Venturers in Connecticut

What qualifies as a commercial co-venturer

Connecticut law specifically defines a commercial co-venturer as “a person who for profit is regularly and primarily engaged in trade or commerce in this state other than in connection with the raising of funds for charitable organizations or purposes and who conducts a charitable sales promotion.” Simply put, if your primary business isn’t fundraising but you’re promoting that purchases will benefit a charity, you’re a commercial co-venturer.

For example, a skincare business selling products to the public that advertises donating 15% of sales to a registered charity that supports skin disease prevention would qualify as a commercial co-venturer, as explained in the Connecticut Department of Consumer Protection FAQs.

How Connecticut defines charitable sales promotions

Under the Connecticut Solicitation of Charitable Funds Act guidance, a charitable sales promotion is an “advertising or sales campaign, conducted by a commercial coventurer, which represents that the purchase or use of goods or services offered by the commercial coventurer are to benefit a charitable organization or purpose”.

The objective for businesses is typically to increase product sales by associating with a charitable cause. Consequently, the charity benefits through revenue generation and potentially increased name recognition. These joint ventures create a mutually beneficial relationship between for-profit enterprises and charitable organizations.

Connecticut’s definition encompasses any scenario where your business advertises that buying your product or service will result in a donation to a charity. Furthermore, this applies regardless of whether you’re donating a percentage per unit, a fixed amount, or a portion of overall sales.

Why registration is required

Registration requirements exist primarily to ensure transparency and protect both consumers and charitable organizations. In Connecticut, although there’s no traditional registration requirement for commercial co-venturers, you must follow specific regulations before beginning any charitable sales promotion, including filing a copy of the written agreement at least 10 days prior, as outlined in the Connecticut Department of Consumer Protection FAQs.

This mandatory filing serves multiple purposes:

• It creates accountability for the sales promotion
• It ensures clear terms between both parties
• It provides consumer protection through transparency
• It helps prevent fraudulent charitable claims

Noncompliance with these requirements can lead to enforcement action, including civil remedies and court orders obtained by the Attorney General in Superior Court, per the state’s Solicitation of Charitable Funds Act guidance.

The written contract must include specific provisions mandated by law, such as a description of goods offered, geographic area of the sale, timeframe, accounting provisions, and details about how the charitable organization’s name will be used in marketing materials.

Initial Registration Requirements

Is registration mandatory in Connecticut?

Connecticut does not require formal registration for commercial co-venturers at the state level. Instead, Connecticut emphasizes contract filing and disclosure requirements to protect both charitable organizations and consumers.

Moreover, Connecticut does not mandate posting surety bonds. This streamlined approach simplifies the process for businesses while still maintaining necessary transparency.

Required forms and documents

The cornerstone of Connecticut’s regulatory framework is the written agreement between your business and the charitable organization. First, you must obtain a written agreement from the charity before conducting any charitable sales promotion.

The contract should contain specific provisions as mandated by Connecticut law, including:

• A complete description of goods or services offered in the promotion
• The geographic area where the promotion will take place
• The specific timeframe of the campaign
• Detailed accounting provisions
• Explanation of how the charitable organization’s name will be used

Notably, rather than requiring specialized state-provided forms, Connecticut allows businesses to create their own contracts as long as they include all required elements, as noted in the state’s Solicitation of Charitable Funds Act guidance. This flexibility allows for customization based on the specific nature of your campaign.

Filing method and fees

Filing your commercial co-venture contract in Connecticut is straightforward and cost-effective. The process requires:

• Submitting a copy of the written agreement to the Department of Consumer Protection
• Sending the document via email to dcp.charitiesenforcement@ct.gov
• No filing fee ($0.00)

Connecticut’s no-cost approach reduces financial barriers for businesses wanting to engage in cause marketing.

When to file before a campaign

Timing is critical when planning your commercial co-venture campaign in Connecticut. You must submit the written agreement to the Department of Consumer Protection no less than ten days prior to the commencement of any charitable sales promotion, as explained by the Connecticut Department of Consumer Protection FAQs.

This advance notice period serves several purposes:

1. It gives regulators sufficient time to review the agreement
2. It ensures all parties understand their obligations before public promotion begins
3. It allows for corrections if any required elements are missing

Subsequently, failure to provide timely notice could result in regulatory action. The Attorney General may seek injunctive relief and other remedies in Superior Court for violations of the Act, under the state’s Solicitation of Charitable Funds Act guidance.

The commercial co-venturer is responsible for filing the agreement with the Department prior to the start of the sale.

Filing the Contract with the Charity

The cornerstone of Connecticut’s commercial co-venture regulation is the properly executed contract between your business and the charitable organization. This document serves as the legal foundation for your charitable sales promotion and must adhere to specific state requirements.

What must be included in the contract

Connecticut law mandates several key provisions in any commercial co-venture contract, outlined in the state’s Solicitation of Charitable Funds Act guidance. Your agreement must explicitly include:

• A detailed description of the goods or services to be offered to the public
• The geographic area where the promotion will take place
• The specific start and end dates of the promotional campaign
• The manner in which the charitable organization’s name will be used in the promotion
• Any representations to the public regarding the amount or percentage per unit of goods or services that will benefit the charity
• A provision for a final accounting on a per unit basis to be given to the charitable organization
• The date when and manner in which the benefit will be conferred on the charitable organization

Filing deadlines and methods

Every commercial co-venturer must file a copy of the written agreement with the Department of Consumer Protection at least 10 days prior to the commencement of any charitable sales promotion, per the Connecticut Department of Consumer Protection FAQs.

Submission method:

1. Email the contract to dcp.charitiesenforcement@ct.gov
2. No filing fee is required ($0.00)

This electronic submission process makes compliance relatively simple.

Does Connecticut require a specific form?

Connecticut does not require a specific form for commercial co-venture contracts; you may use your own format provided all required elements are included, according to the state’s Solicitation of Charitable Funds Act guidance.

Financial Reporting Obligations

What financial details must be addressed

Under Connecticut law, commercial co-venturer contracts must include a provision for a final accounting on a per unit basis to be given by the commercial co-venturer to the charitable organization, along with the date when the benefit will be conferred on the charity, as described in the state’s Solicitation of Charitable Funds Act guidance. Ensure your agreement and internal records clearly document:

• Gross receipts and sales from the promotion
• Expenses incurred during the campaign (as applicable to calculating the benefit)
• The amount to be conferred on the charitable organization and the method of calculation

When and how to provide the accounting

Connecticut does not prescribe a separate post-campaign report filing with the Department of Consumer Protection for commercial co-venturers. Instead, the final accounting must be provided to the charitable organization according to the terms set in the contract.

Maintain adequate records supporting the accounting and benefit conferred for your files. While there is no separate state filing fee or portal submission specific to commercial co-venturers, records should be readily available if requested by authorities.

Who receives the accounting

The charitable organization receives the final accounting under the agreement. Keep supporting documentation with your business records so both parties can verify the financial outcomes of the promotion if questions arise.

Annual Renewal and Ongoing Compliance

Is annual renewal required?

Connecticut does not mandate annual renewal or registration for commercial co-venturers. This absence of annual renewal simplifies ongoing compliance for businesses conducting charitable sales promotions in Connecticut.

Maintaining records and disclosures

Proper recordkeeping remains vital even without formal renewal requirements. Maintain records related to your charitable sales promotion, including the contract, financial records, promotional materials, and documentation of funds conferred, so they are available if requested by the Department of Consumer Protection or the Attorney General.

Penalties for noncompliance

Failure to comply with Connecticut’s commercial co-venture requirements can trigger serious consequences, including injunctive relief and other remedies sought by the Attorney General, and potential court-ordered actions to ensure the due application of funds, per the state’s Solicitation of Charitable Funds Act guidance.

Frequently Asked Questions

Conclusion

Navigating commercial co-venture requirements in Connecticut demands careful attention to detail and proper planning. Unlike many other states, Connecticut offers a streamlined approach without formal registration requirements or hefty fees. Nevertheless, compliance remains essential for protecting your business reputation and avoiding significant penalties.

Remember that your contract with the charitable organization serves as the cornerstone of your co-venture relationship. Ensuring this document contains all legally required elements and filing it at least ten days before your campaign begins stands as your primary compliance obligation. Additionally, maintaining thorough financial records throughout your promotion will support the final accounting you must provide to your charitable partner.

Because Connecticut does not require a separate post-campaign filing with the Department of Consumer Protection for commercial co-venturers, your focus should be on honoring the agreement’s financial terms and keeping documentation that demonstrates transparency and accuracy.

Despite the absence of annual renewal requirements, your obligation to maintain proper documentation remains. The transparent nature of Connecticut’s regulatory framework fosters consumer trust in your charitable claims.

Commercial co-ventures present opportunities for businesses to make positive social impacts while enhancing marketing efforts. Managing CCV requirements can be complex, but we streamline the process by helping prepare required filings, reviewing contract elements to ensure they meet state standards, and tracking compliance deadlines. For more than 35 years, Labyrinth, Inc. has been the trusted partner for nonprofits nationwide, combining deep regulatory knowledge with personalized service to help organizations maintain compliance so they can focus on their mission.