At a Glance

In South Carolina, businesses conducting commercial co-ventures must register with the Secretary of State before launching any charitable marketing campaigns. The process requires a $50 registration fee, filing contracts and notices at least ten days before campaign start, and submitting financial reports within 90 days after completion. Annual renewal with another $50 fee maintains your active registration status.

Are you planning a commercial co-venture to boost your business while supporting a good cause in South Carolina? Partnering with charities through promotional campaigns can significantly enhance your brand image while making a positive impact. However, before launching your campaign, you need to understand the specific registration requirements in South Carolina to ensure legal compliance.

Commercial co-ventures in South Carolina are subject to detailed regulatory oversight under state law. When your business promises to contribute a portion of sales to a charitable organization, you must follow specific filing procedures with the Secretary of State. These include initial registration with appropriate fees, contract submissions, and financial reporting after your campaign concludes. Managing these CCV requirements can be complex, but proper preparation of required filings and careful coordination of multi-state compliance ensures your campaigns proceed smoothly.

Throughout this guide, you’ll discover the essential steps for properly registering your commercial co-venture in South Carolina. Specifically, we’ll walk you through the registration application process, contract filing requirements, financial reporting obligations, and annual renewal procedures. By following these guidelines, you can confidently pursue charitable marketing partnerships while staying compliant with South Carolina regulations.

Understanding Commercial Co-Venturing in South Carolina

For businesses operating in South Carolina, the first step toward compliant charitable marketing is understanding exactly what constitutes a commercial co-venture under state law.

Definition under SC Code § 33-56-110

South Carolina law provides a specific legal framework for commercial co-ventures. According to SC Code § 33-56-20(3), a “commercial co-venturer” is defined as “a person that regularly and primarily engages in trade or commerce for profit that, for the benefit of a charitable organization, may raise funds by advertising that the purchase or use of goods, services, entertainment, or other thing of value benefits the charitable organization, if it is offered at a price comparable to similar goods or services in the market.” For additional guidance from the state, see the South Carolina Secretary of State’s CCV registration guidance.

This definition encompasses businesses that conduct normal commercial activities but incorporate a charitable component where purchases benefit a nonprofit organization. Primarily, the business must be a for-profit entity that advertises to consumers that their purchases will benefit a charitable cause.

Additionally, South Carolina law requires that any person acting as a commercial co-venturer must register with the Secretary of State before beginning any solicitation activity; see South Carolina Secretary of State CCV registration.

Types of activities considered co-venturing

• Advertising that a percentage of product sales will be donated to a specific charity
• Running limited-time promotions where a portion of proceeds benefits a nonprofit
• Offering special products or services where some value is directed to charitable organizations
• Hosting events where ticket sales partially benefit designated charities

The critical element across all these activities is that the business promises consumers that their purchase directly benefits a charitable organization. Furthermore, the products or services must be offered at market-comparable prices, not at inflated rates disguised as charitable contributions.

Unlike purely charitable solicitations, commercial co-ventures involve genuine commercial transactions where both parties—the business and the consumer—receive value, with the charitable benefit serving as an additional component of the exchange.

Distinction from professional solicitors and fundraising counsel

Commercial co-venturers operate under different rules than other fundraising entities. In contrast to professional solicitors and fundraising counsel, co-venturers are primarily engaged in their own commercial business rather than focusing on charitable fundraising.

Nevertheless, South Carolina takes co-ventures seriously, requiring several key filings:

1. Registration Application with a $50 fee prior to solicitation activities (see South Carolina CCV registration application)
2. Notice of Solicitation form and all contracts at least ten days before any campaign (see South Carolina SOS charities, PFRs, and raffles portal)
3. Joint Financial Report after campaign completion (see Joint Financial Report for Commercial Co‑Venturer)

To avoid misclassification, businesses should carefully avoid language suggesting direct consumer donations to charities. Instead, communications should clearly indicate that purchases of products or services will trigger business contributions to the charitable organization.

By understanding these distinctions, businesses can properly classify their charitable marketing activities and comply with the appropriate regulatory requirements in South Carolina.

Initial Registration Requirements for Commercial Co-Venturers

Once you’ve determined your business qualifies as a commercial co-venturer, registration with the South Carolina Secretary of State becomes your next crucial step. Proper registration establishes your legitimacy and ensures compliance with state regulations governing charitable partnerships.

Filing the Registration Application with $50 Fee

Registering as a commercial co-venturer in South Carolina requires submitting a formal application accompanied by the mandatory filing fee. The Secretary of State has established a standardized process:

• Complete the Registration Application for a Commercial Co‑Venturer form.
• Submit the application along with a $50.00 filing fee.
• Choose between mail submission or online filing options.

The registration application serves as your official authorization to conduct charitable marketing campaigns in South Carolina. Without this registration, your co-venture activities would be considered non-compliant with state law. Moreover, this registration must be renewed annually for as long as you remain active in charitable promotions within the state; see South Carolina Code Title 33, Chapter 56. Expert preparation of these CCV filings helps ensure accuracy and timely submission.

For mail submissions, send your completed application and payment to: South Carolina Secretary of State, Public Charities Division, 1205 Pendleton St., Suite 525, Columbia, SC 29201.

Required information: legal name, address, EIN

Your registration application must contain specific organizational details that identify your business officially. The Secretary of State requires the following essential information (see South Carolina Code Title 33, Chapter 56):

1. Legal name of the applicant and any other names under which it is known or operates
2. Principal address and the address of officers and directors
3. Form of the applicant’s business (e.g., corporation, LLC, partnership)
4. List of the full names and addresses of each state in which the applicant is currently registered as a commercial co‑venturer
5. List of charitable organizations with which the applicant contracted in South Carolina for the previous three years
6. Statements regarding certain legal or administrative actions and criminal convictions, if applicable, and relationship disclosures among officers/directors or with a contracted charity

Notably, the application must be properly authorized by your organization’s leadership. The Secretary of State specifically requires signatures from both the CEO/President and CFO/Treasurer (see South Carolina Code Title 33, Chapter 56).

Timeline for registration before campaign start

Timing is a critical aspect of compliance for commercial co-venturing in South Carolina. The state has established clear deadlines regarding when registration must occur:

• Commercial co-venturers must register prior to engaging in any solicitation activity (see the South Carolina SOS charities, PFRs, and raffles portal).
• Registration should be completed well in advance of your planned campaign launch.
• Industry experts recommend allowing at least one month for preparation.

This preparatory period is particularly important since many registration forms require gathering various company and charity information beyond just completing the application. Additionally, the state allows approximately 1–2 business days for processing your registration.

Failing to meet registration deadlines can result in penalties, even though states may show some leniency for reasonable excuses. Subsequently, after registration, you’ll need to file additional documents, including a Notice of Solicitation form and copies of all contracts with charitable organizations at least ten days before beginning any solicitation activity (see the South Carolina SOS charities, PFRs, and raffles portal).

Planning your registration timeline carefully ensures your commercial co-venture can proceed without regulatory complications. Upon successful registration, your business will receive official authorization from the Secretary of State to conduct charitable marketing campaigns in compliance with South Carolina law.

Contract Filing and Notice of Solicitation Obligations

After completing your initial registration, your next critical obligation involves filing the required contract documents and notice of solicitation forms with the South Carolina Secretary of State. These filings establish the legal framework for your charitable marketing campaign.

Notice of Solicitation: 10-Day Advance Filing Rule

South Carolina law mandates a strict timeline for filing your promotional campaign documentation. You must submit the Notice of Solicitation form along with copies of all contracts between your business and the charitable organization at least ten days before beginning any solicitation activity (see the South Carolina SOS charities, PFRs, and raffles portal). This advance filing requirement gives the Secretary of State’s office sufficient time to review your materials and ensure compliance with state regulations.

The Notice of Solicitation form serves as an official declaration of your intent to conduct a charitable sales promotion in South Carolina and must include the information required by statute. Ensuring disclosure language meets state standards and organizing contract elements properly helps streamline this process.

Mandatory contract disclosures under SC law

Your contract with the charitable organization must contain specific information as mandated by South Carolina Code § 33-56-70. The law explicitly requires that contracts filed with the Secretary of State disclose:

• Legal name, alias name, address, and registration number of your business, if any
• Legal name, address, and registration number of the charitable organization
• Names and residence addresses of all persons directing the solicitation services
• Complete description of the campaign or event
• Start and end dates of the solicitation campaign
• Statement of the amount or guaranteed minimum percentage of gross receipts that will benefit the charity, excluding the amount the charity must pay for fundraising costs
• Compensation structure, including fundraising costs reimbursements
• Maximum dollar amount benefiting the charitable organization, if applicable

Without these mandatory disclosures, your contract will be considered incomplete, potentially delaying or preventing your campaign from proceeding.

Details required in co-venture agreements

Beyond the statutory requirements, your Notice of Solicitation form must contain additional specific details about your co-venture arrangement (see South Carolina Code § 33-56-70). This form must clearly outline:

1. The exact dates when solicitation activities will commence and terminate in South Carolina
2. Names and residence addresses of phone room directors if telephone solicitations are involved
3. Physical locations and telephone numbers from which solicitation activities will be conducted
4. Comprehensive description of all planned solicitation activities
5. Complete terms of remuneration for the campaign pursuant to the contract

Importantly, no solicitation or services related to your commercial co-venture may begin in South Carolina until both the contract and Notice of Solicitation have been properly filed and until both your business and the charitable organization are registered with the Secretary of State.

Joint Financial Reporting After Campaign Completion

Upon completion of your charitable marketing campaign, South Carolina requires thorough documentation of financial outcomes. This crucial final step in the regulatory process ensures transparency and accountability between your business and the charitable organization.

Filing the Joint Financial Report within 90 Days

The conclusion of your commercial co-venture triggers a mandatory reporting deadline. South Carolina law mandates that all commercial co-venturers must file a Joint Financial Report for Commercial Co-Venturer with the Secretary of State’s office within 90 days after a solicitation campaign has ended (see the South Carolina SOS charities deadlines). This strict timeline ensures timely reporting of campaign results and charitable contributions.

To meet compliance requirements:

• Submit the Joint Financial Report for Commercial Co‑Venturer form available from the Secretary of State
• File by mail or online through the Secretary’s official portal
• Ensure submission occurs no later than 90 days post-campaign
• Note that no filing fee is required for this report

Failure to meet this deadline can result in significant consequences, as South Carolina enforces fines for noncompliance with these requirements (see South Carolina Code Title 33, Chapter 56). Consequently, marking this deadline on your calendar immediately after campaign completion is imperative.

Required financial breakdowns and disclosures

Your Joint Financial Report must contain comprehensive financial information about the campaign. The form requires:

1. Gross revenue from the entire campaign (see the Joint financial report template from the South Carolina Legislature)
2. Detailed itemization of all expenses incurred (see the Legislative template)
3. Final amount paid to the charitable organization (see the Legislative template)
4. Signatures from authorized officials of both your company and the charity

Reporting for campaigns lasting over one year

For extended commercial co-ventures, South Carolina implements a different reporting schedule. If your campaign continues beyond 12 months:

• File the Joint Financial Report within 90 days after the anniversary date of the campaign’s commencement (see the South Carolina SOS charities deadlines)
• Continue annual filings until the campaign concludes
• Submit a final report within 90 days after the campaign’s ultimate completion (see the SOS deadlines)

Additionally, commercial co‑venturers must keep true fiscal records as to their activities in this state, retained for at least three years after the end of the period of registration to which they relate (see South Carolina Code Title 33, Chapter 56).

The Joint Financial Report represents the final regulatory requirement in your commercial co-venture process, officially documenting the results of your charitable marketing initiative in compliance with South Carolina law.

Annual Renewal and Ongoing Compliance

Beyond your initial registration and campaign reporting, maintaining active status as a commercial co-venturer in South Carolina requires ongoing attention to renewal requirements. Staying compliant helps you avoid penalties while continuing your charitable marketing activities.

Renewal form and $50 fee submission

Commercial co-venturers must renew their registration with the South Carolina Secretary of State annually. This renewal process involves submitting the Registration Application form as a renewal and paying the $50.00 fee (see South Carolina Code Title 33, Chapter 56).

The renewal application requires signatures from both your company’s CEO/President and CFO/Treasurer. Without these authorized signatures, the Secretary of State will return your form for correction (see South Carolina Code Title 33, Chapter 56). Many businesses opt to handle this renewal through mail submission, although online filing options exist as well. Tracking renewal requirements across multiple states helps ensure timely compliance for businesses operating multi-state CCV campaigns.

Maintaining updated records with the Secretary of State

In addition to annual renewals, your organization must maintain current information with the Secretary’s office. This involves promptly notifying the state about any material changes to your:

• Company name or structure
• Principal business address
• Leadership personnel, especially those in signatory positions
• Contact information

Altogether, your responsibility extends beyond mere renewals to ensuring all information remains accurate in state records. During this process, you may need to submit additional documentation verifying organizational changes.

Consequences of failing to renew on time

Failure to maintain proper registration can result in penalties. A commercial co‑venturer that fails to comply with filing requirements may be assessed administrative fines of $10 per day of noncompliance, up to $2,000 for each separate violation (see South Carolina Code Title 33, Chapter 56). For knowing and willful violations of the chapter with intent to deceive or defraud, criminal penalties can include, for a first offense, a fine of up to $5,000 or imprisonment up to one year (or both), and for a second or subsequent offense, a fine of up to $10,000 or imprisonment up to five years (or both) (see South Carolina Code Title 33, Chapter 56).

Other potential consequences include:

• Publicly announced cease and desist orders
• Forced return of charitable donations
• Taxation of all charitable donations received
• Loss of ability to raise funds in South Carolina

Frequently Asked Questions

Conclusion

Navigating commercial co-venture regulations in South Carolina requires careful attention to detail and strict adherence to filing timelines. Throughout this guide, you’ve learned essential steps for maintaining full compliance with state requirements while running charitable marketing campaigns.

First and foremost, registering as a commercial co-venturer before launching any solicitation activities stands as a fundamental requirement. This initial registration, accompanied by a $50 fee, establishes your legal foundation for charitable marketing partnerships. Subsequently, filing your Notice of Solicitation form and all contracts at least ten days prior to campaign launch ensures proper disclosure of your promotional plans.

Financial accountability remains equally important after your campaign concludes. The Joint Financial Report, due within 90 days after campaign completion, documents your promotional results and charitable contributions. This transparency protects both your business reputation and charitable partners.

Remember that your registration requires annual renewal with another $50 fee submission. Failure to maintain proper registration status can result in significant penalties, potentially reaching thousands of dollars per violation. These consequences underscore the importance of diligent compliance with all Secretary of State requirements.

Commercial co-ventures offer valuable opportunities to enhance your brand while supporting worthy causes. With proper guidance on state CCV requirements and organized preparation of required documents, businesses can confidently pursue charitable marketing partnerships. We support businesses and nonprofits with state-specific CCV filings, compliant disclosure language, and contract guidance. Armed with this comprehensive understanding of South Carolina’s registration requirements, you can navigate the regulatory landscape while making a positive impact through charitable marketing initiatives that benefit your business, support nonprofits, and comply with state regulations.