2016 cause conference mary tovella taking advantage of the halo effect

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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

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QUESTIONS?

Thank You

Mary Tovella Dowling, Esq. For Purpose Law Group

mtovella@forpurposelaw.com