A commercial co-venture is an agreement, usually between a nonprofit organization and a for-profit business, that supports a charitable cause while generating commercial goodwill. Typical features of commercial co-ventures may include a share of revenue donation to the nonprofit, a charitable event underwritten by a business, and activities of any kind advertised to benefit a charitable organization.

The nonprofit must have its charitable registration in order, and the partnering business may need to be registered as a commercial co-venturer. Twenty-four jurisdictions have commercial co-venture registration requirements, and most filing requirements fall on the business. While only four states require a formal registration, the other states may require the filing of the contract, disclosures in advertising, state-specific language to be included in the contract itself, some form of accounting or record keeping, or final financial reporting. For-profit businesses are largely unaware of the registration requirements for fundraising. It often falls on the nonprofit to educate its partner. Any arrangements for a share-of-sales agreement, event underwriting, or other ventures should be in writing. You may need to file each new contract with the jurisdiction authority. Nonprofits should view commercial co-ventures as a positive opportunity but only engage once they've ensured all proper registrations are in place.

Individuals and firms operating without a registration can be liable for penalty fees and criminal charges.

Yes, nonprofits that raise funds from the public must meet charitable registration requirements. States regulate charitable solicitation, and the requirements vary by jurisdiction. Forty-one jurisdictions currently require nonprofits to register to solicit their residents.