2016 cause conference mary tovella taking advantage of the halo effect
TRANSCRIPT
#CauseSD ™
MARY TOVELLA DOWLING, ESQ.
FOR PURPOSE LAW GROUP
CAUSE CONFERENCE: TAKING ADVANTAGE OF THE HALO EFFECT
™
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WHAT IS CAUSE RELATED MARKETING?
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Cause-related marketing is a mutually
beneficial collaboration between a for-profit and a nonprofit designed to promote the
former’s sales and the latter’s cause
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WHY CAUSE RELATED MARKETING?
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WHO REGULATES CAUSE RELATED MARKETING?
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• Charitable Speech v. Commercial Speech
• Standing
• Consumers • Regulatory Agencies
• Federal Authority
• Federal Trade Commission • Internal Revenue Service
• State Authority
• State Attorney General
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WHAT DOES CAUSE MARKETING LOOK LIKE?
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POINT OF SALE PROGRAMS
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Point of Sale Programs
Legal Considerations •Expectation of the Parties • Passive v. Active
•Written Agreement • Term • Audits / Accounting • Donation Distribution • Risk of Loss
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BUY ONE – GIVE ONE
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Buy One – Give One
Legal Considerations • Supply Chain Considerations
• Product and Service Liabilities
• Cause v. Charity Partnership
• Written Agreement
• Term • Value Match
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CALL TO ACTION
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Call to Action Legal Considerations •Media Waivers •Privacy Policies •Terms and Conditions of Use
•Written Agreement
• Term • Donation Caps
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PROUD SUPPORTER
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Proud Supporter
Legal Considerations •Deductibility of Donation
•Cost v. Benefit
•Public Support Test • Gift Acceptance Policies
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EMPLOYEE ENGAGEMENT
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Employee Engagement
Legal Considerations •VTO Programs •Employment Law Considerations
• Insurance Coverage
• Volunteers • Events Outside Regular Course of Business
•Volunteer Agreements
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CORPORATE SPONSORSHIP
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Corporate Sponsorship
Legal Considerations •UBIT Concerns
• Qualified Sponsorship Payments
•Substantial Return Benefit v. Disregarded Benefit
•Written Sponsorship Agreement
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LICENSING ARRANGEMENT
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Licensing Arrangement
Legal Considerations •Royalty Structure •UBIT Concerns •Quality Control of Intellectual Property
•Licensing Agreement
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PERCENTAGE OF SALES (COMMERCIAL CO-VENTURE)
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Percentage of Sales
(Commercial Co-Venture)
Legal Considerations • State Registration and Reporting
• Annual Registration • Annual Financial Reporting • Bond Requirements
• Co-Venture Agreement • Must be in writing • Automatic transfer within
90 days • Written accounting
• Disclosures
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STRATEGIC PARTNERSHIP
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Strategic Partnership
Legal Considerations • Party Objectives • Intellectual Property Ownership
• Cost Allocations • Liability Risks • Written Agreement
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JOINT VENTURE
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Joint Venture Legal Considerations •Liability Protection •Unrelated Business Activities
•Entity Choice •Joint Venture Agreement
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ENTITY CHOICE
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Entity Choice Legal Considerations •Benefit Corporation •Social Purpose Corporation
•Low-Profit Limited Liability Company (“L3C”)
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Additional Contract
Considerations
• Intellectual Property Rights
• Donation Caps • Accounting Provisions • Forum Selection Clauses • State Specific Requirements
• Dispute Resolution
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From a Nonprofit Prospective…
• Brand Impact • Your Charity’s Name is a Charitable Asset
• State Compliance • Protecting your exempt status
• Tax Implications • Written Contract
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From a For-Profit Perspective…
•Brand Impact •Strategic Giving •Due diligence
•Proper Disclosures
•Written Contract
