Charitable Solicitation Registration & Commercial Co-Ventures

What Nonprofits Need to Know About Cause-Marketing Campaigns

Commercial co-ventures—often referred to as cause-marketing or percentage-of-sales campaigns—create unique charitable solicitation registration and disclosure obligations for nonprofits.

These requirements are frequently misunderstood and are among the most heavily regulated fundraising activities in many states.

This page explains what commercial co-ventures are, how charitable solicitation registration applies, and why nonprofits should address compliance before launching cause-marketing campaigns.

If your organization partners with for-profit businesses on fundraising promotions, Ironwood Registrations can help review your compliance obligations: contact us

What Is a Commercial Co-Venture?

A commercial co-venture generally exists when:

A for-profit business advertises that a portion of sales or proceeds will benefit a charity, and
The promotion is used as a marketing incentive to increase sales

Common examples include:

“A portion of every purchase supports [Charity Name]”
Cause-branded product sales
Retail or online checkout donation promotions
Time-limited promotional fundraising campaigns

In these arrangements, the for-profit company is typically regulated as a commercial co-venturer, and the nonprofit has related compliance responsibilities.

Why Commercial Co-Ventures Are Heavily Regulated

Many states impose stricter requirements on commercial co-ventures because:

Donations are tied to consumer transactions
Advertising claims affect purchasing decisions
Funds are temporarily held by for-profit entities
Donors may assume funds go directly to the charity

As a result, states often require advance filings, contract disclosures, and post-campaign reporting.

Common Registration and Filing Requirements

Depending on the state, commercial co-venture campaigns may require:

Registration of the charity (if not already registered)
Registration of the commercial co-venturer
Filing of the co-venture contract before the campaign begins
Specific disclosures in advertising and promotional materials
Post-campaign financial reporting

These requirements often apply even if the nonprofit is otherwise exempt from registration.

Timing Is Critical: Before the Campaign Launches

Unlike many charitable registrations, commercial co-venture filings are often required before any advertising or promotion occurs.

Launching a campaign before filings are complete may result in:

Campaign suspension
Required corrective disclosures
Regulatory inquiries
Delays in receiving funds

This is especially important for national or online promotions.

Common Misconceptions About Cause-Marketing Campaigns

“The company handles everything.”

While the for-profit partner may file certain documents, the nonprofit is still responsible for ensuring compliance and accurate disclosures.

“It’s just a marketing promotion, not fundraising.”

States often view these campaigns as regulated charitable solicitations, regardless of how they are framed contractually.

“This only applies in a few states.”

Commercial co-venture regulation exists in many states, and requirements vary widely. National campaigns often trigger obligations in multiple jurisdictions simultaneously.