Cause Marketing Registration Requirements

Cause Marketing Registration Requirements

Cause marketing or cause-related marketing is when a nonprofit and a for-profit collaborate. Cause marketing can lead to additional funds for the nonprofit’s cause and to 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 and in return gets to use the charities name and state in its marketing campaign that a portion of sales will go to the charity. State regulators oversee cause marketing in their state and there are cause marketing registration requirements both for the charity and for the for-profit, particularly if their is a commercial coventurer agreement in place between the two parties. The charity will need to file any commercial coventurer agreement with the states and will also have to file Notices of Sales Promotion in a few states. The for profit will need to file as a commercial coventurer in about 5 states and would need to file the commercial coventurer agreement and contract transmittals in about 8 states. They would also need to ensure that the verbiage in the commercial coventurer agreements met all the state requirements on what wording must be in a contract. Labyrinth, has been specializing in cause marketing state registrations for 30 years and we can help both the charity and the for-profit file and get 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 can assist you through the process.