Fundraising for a charity can be a powerful way for brands to demonstrate their commitment to social good. However, to do so effectively—and legally—brands must understand and adhere to commercial co-venturing (CCV) compliance requirements.
A commercial co-venture arises when a brand partners with a charity, pledging to donate a portion of proceeds from product sales or campaigns. While these collaborations can amplify impact, they are subject to strict legal guidelines designed to protect both consumers and charitable organizations.
Compliance ensures transparency, a cornerstone of trust between brands, charities, and consumers. It prevents misleading claims about where and how much of the funds raised are going to the charity. States like California and New York, for example, mandate clear disclosures about the charity’s identity, the specific donation amount per sale, and any caps on contributions.
Non-compliance risks legal penalties, damaged reputations, and loss of consumer trust—outcomes that can undermine even the most well-intentioned campaigns. On the other hand, adhering to CCV regulations not only protects your brand but also reinforces its integrity and credibility.
By prioritizing compliance, brands can forge meaningful partnerships with charities while building genuine consumer connections and driving long-term impact. It’s not just a legal necessity—it’s good business practice.
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