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Consumers increasingly want to be happy with their purchasing decisions, and like-minded businesses often seek ways to communicate how they are engaging with consumers through “cause marketing” campaigns. I have. A popular type of campaign, commonly referred to as a “commercial co-venture” or “CCV” campaign, involves commercial companies advertising that a portion of their purchases will benefit a charity.
About half of the states regulate CCV campaigns, as discussed in this podcast. Regulations typically fall into one or more of the following categories: (b) Advertising Disclosure. (c) Financial Accounting. (d) State Registration. California’s new law, which went into effect this month, will impose new requirements on “charitable fundraising platforms,” including certain CCV campaigns, but the most burdensome provisions have been postponed until next year.
Historically, California has not required companies conducting CCV campaigns to register with the state as long as they: (b) He will transfer the required funds to the charity in 90-day increments. (c) provide the charity with accounting for each payment and confirm that the Company has complied with its public representations; New laws don’t change that.
However, under the new law, businesses must register as charitable fundraising platforms if: (a) the campaign is conducted at least partially online; (b) the campaign is directed to California individuals; (c) Donations benefit no less than six charities each calendar year. In addition to registration, businesses must complete certain reporting requirements at the end of each calendar year.
The law took effect January 1, 2023, but California has postponed registration and other reporting requirements until January 1, 2024 while it finalizes regulations to implement the law. Other provisions, including (a) requirements to ensure that charitable organizations are in good standing, (b) prohibitions on misuse of charitable funds, and (c) requirements to make certain disclosures, are currently in effect. Note that there is
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The content of this article is intended to provide a general guide on the subject. You should seek professional advice for your particular situation.
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