Corporations can donate a percentage of sales for certain items or for purchases made during a specified period of time. The corporation can advertise these promotions using Children’s Fund logo.
Cause-related marketing promotions are regulated by the Better Business Bureau Wise Giving Alliance Standards for Charity Accountability, by applicable state commercial co-venture laws as well as by the Five Best Practices for Transparent Cause Marketing Implemented by the New York Attorney General.
These regulations and best practices require full disclosure to the consumer regarding the benefit to the charity when donations are raised through a consumer purchase on all packaging, advertising and promotional materials in clear and unambiguous terms.
For more information about the BBB Standards (including Standard 19, which applies to cause-related marketing promotion disclosure), please visit www.bbb.org/us/standards-for-charity-accountability/
For information about Five Best Practices, please visit www.charitiesnys.com/cause_marketing.jsp
In Virginia, businesses are required to register as a “commercial co-venturer” if conducting a cause-related marketing promotion, such as donating a percentage of sales to Children’s Fund. Speciﬁc requirements for commercial co-ventures vary from state to state. In the Virginia Code specifications are explained in 57-62.
Although Children’s Fund cannot give legal advice to third parties, we recommend seeking legal counsel to ensure compliance with applicable state requirements.