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Cause Marketing Registration Requirements

Cause marketing or cause-related marketing is when a nonprofit and a for-profit collaborate to raise funds. Cause marketing can lead to additional funds for the nonprofit’s cause and ¬†increased sales for the for-profit. A common form of cause marketing is a commercial coventurer agreement in which the for-profit agrees to donate a percentage of sales or a fixed amount per item sold to a charity. In return, the for-profit gets to use the charity’s name in its marketing campaign by stating that a portion of the sales will go to charity.

Cause marketing is generally regulated by the state. Generally, there are cause marketing registration requirements that must be met by both the nonprofit and for-profit entities. The nonprofit is required to file any commercial coventurer agreement with the state. Some states require Notices of Sales Promotion to be filed. The for-profit will need to file as a commercial coventurer in about 5 states. 8 states require the for-profit to file the commercial coventurer agreement as well as contract transmittals. Some states have requirements in place governing the verbiage to be used in any commercial coventurer agreement or contract.

With over 30 years of helping nonprofit as well as for-profit organizations with cause-related marketing registrations, you can count on us to get you registered. Please call us at 844-863-0915 or email us at info@labyrinthinc.com to discuss registration requirements for your cause marketing campaign and how Labyrinth, Inc. can assist you through the process.