How to Navigate the Legal World of Cause Marketing

When I first heard Sam Mazzeo of In Better We Trust speak at a conference a few years ago, I was immediately impressed with his ability to make legalese sound interesting and approachable. I know, what a skill, right?

So, when he posted about cause marketing on social media a while back, I knew I needed to have him further explain it to you as both a lawyer and an advocate of social impact. If you’ve been looking for the one-two punch of a for-profit / nonprofit partnership, you’re gonna want to listen up, and maybe take some notes.

Commercial Co-Ventures may not be a term you’re familiar with (yet), but you’ve certainly seen it in action—and you’re probably dying to give it a try. However, before you jump into this type of committed partnership, read Sam’s take on how to navigate the legal world of cause marketing. Your cause will thank you.

WHAT IS CAUSE MARKETING?

You may not know it, but Cause Marketing, or Commercial Co-Ventures, is all the rage in the social impact space these days. So, what is it?

Cause Marketing is when a for-profit business promises to donate a portion of their sales proceeds from a product or service they sell to a nonprofit organization.

Simple, right? Not so fast . . .

Typically, the for-profit already sells products or services and, by virtue of making a promise to donate a portion of its revenue to a charity, the marketing campaign becomes a Cause Marketing campaign. Meaning, this can happen legally even if you didn’t intend it to!

A successful example of Cause Marketing (that didn’t happen by accident) is the NFL’s A Crucial Catch Campaign, also referred to as “NFL Pink.”  This campaign is a joint effort between the NFL and the American Cancer Society to raise money for cancer research and awareness. The NFL auctions game apparel and equipment that bears a pink ribbon logo and sells NFL Pink merchandise. In turn, the NFL donates a portion of proceeds from these auctions to the American Cancer Society. Not only does the NFL gain some positive PR, but the American Cancer Society has also received approximately $7 million dollars from the campaign.

Not too shabby, right?

THE FINE PRINT: REGULATIONS ON A COMMERCIAL CO-VENTURE

Obviously, when a Cause Marketing campaign is successful, both the non-profit and the for-profit benefit financially and in a public relations sense. Cause Marketing, however, does require some compliance and oversight to keep it legal.

In many states, when a business engages in Cause Marketing, the business and non-profit legally become a commercial co-venture, which can trigger various regulations. Marketing language that puts you in the commercial co-venture category includes:

• For each ______ sold, we will donate to ______.

• Send in five ______, and we will donate $10 to ______.

AKA if you advertise to the public that proceeds will be donated from sales, you’re in the Commercial Co-Venture world, folks!

Many states have implemented regulations on commercial co-ventures in an effort to keep consumers well informed and to ensure businesses do not merely say that proceeds go to charity when they actually do not. Regulations and enforcement vary from state to state, which can present some difficulties and confusion for national campaigns.

Cause Marketing Regulations and Requirements

Generally, the regulations and requirements include:

• Registration Requirements: A requirement for the business to register with the state by filling out a commercial co-venture registration form. Generally, annual reports must be filed with the Attorney General of each state.

• Contract: In some states, the business and the charity must enter into a written contract with specifically required provisions and file the contract with the state.

  • Pro California Tip: In California, if you have an agreement in place with the nonprofit, you likely don’t have to register with the Attorney General!

• Reporting by Charities: In some states, the charity must file a statement prior to the campaign and include the promotion in its annual reporting.

• Accounting: A complete accounting and retention of those records is often required upon completion of the campaign.

• Disclosures: The for-profit is likely required to include language regarding the specific amount or percentage of proceeds that will be donated in all of the campaign materials.

Unfortunately for all of you cause-marketers, states vary as to the extent of enforcing these regulations. Generally, the biggest consequence in failing to comply is bad publicity for the for-profit.

For a Goliath like the NFL, bad publicity is pretty easily absorbed. For a growing business or new nonprofit, on the other hand, bad publicity can be disastrous. For example, take the case of a for-profit that was required to contribute additional money to a nonprofit because the language in a campaign was ambiguous or misleading in regards to how much of the consumer’s purchase would be donated. In 1999, Yoplait was required to pay several million dollars in additional contributions to the Breast Cancer Association because of unclear promotion terms.

To sum it all up, find a sweet product that your nonprofit wants to endorse (or find a sweet nonprofit if you’re the for-profit), create a joint campaign that is compliant and discloses the donation percentage, and shout that campaign from the rooftops.

If all goes well, the nonprofit sees an increase in donations and the for-profit sees an increase in sales. It’s a win for everyone!

Still confused? Watch me explain it again in this video.

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Sam Mazzeo is a Renaissance man, but like, an approachable one.

Here are some things he can help you better understand: trademark, business formation and securities, contracts, Halloween party planning, how to do a standing backflip, and the proper pronunciation of the word “GIF.”

But he can’t help you if your questions are related to birds. He isn't a big fan of birds.

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I’m Kristi Porter, and I help cause-focused organizations understand and execute effective marketing campaigns so they can move from stressed to strategic. Your resources may be limited, but your potential isn’t. Whether you’re a nonprofit, social enterprise, or small business who wants to give back, I’ll show you how to have a bigger impact.

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Why Nonprofits Need Influencers To Grow (And How To Do It Right)

Have you heard the buzzword “influencer” and wondered what the heck it was? Or if it’s a familiar term, have you struggled with how to find one of these elusive creatures to work with your nonprofit? Well, never fear—today’s post is for you.

While influencers have always existed, the Internet Age has given them new meaning, as well as new ways to capitalize on their popularity. (Cue the Wicked soundtrack!) Social media brought with it a whole host of new job possibilities. I mean, 15 years ago, we all would’ve laughed someone out of the room who said people would pay to watch another person play video games. But, here we are…

So, if getting an influencer to spread the word about your cause is on your To Do List, Kayleigh Alexandra of Micro Startups is going to break it down for you. I’ve seen social impact organizations have great success with this tactic, so I’d encourage you to give it a try and see what happens!

Growing your nonprofit can be tough. Aside from competing for attention against so many other worthwhile nonprofits, making donors care about a cause is a big task. Thankfully, influencers are here to make all of that a breeze.

It’s important to make time for your nonprofit marketing, and using influencers doesn’t just save you time—it’s also highly effective. Keep reading to find out how your nonprofit can benefit from an influencer collaboration in 2019.

What are influencers?

While you might not know exactly what influencers are, you’ve probably already encountered them without realizing it. Influencers are social media stars, tastemakers who command significant influence over their followings online.

There are countless examples of online influencers: Kim Kardashian, Marie Kondo, Jake Paul, Huda Kattan, Andrew Bachelor, Gary Vaynerchuk, Joanna Gaines—the list goes on. And for every influencer, there are ten more examples of brands partnering with them for a marketing campaign.

Influencers can be divided into two, broad categories: macro and micro.

Macro-influencers are the A-listers of the influencer world. With social followings in the high hundred-thousands or millions, these individuals are renowned the world over. Consequently, any brand looking to collaborate with them can expect to pay correspondingly high prices.

At the other end of the scale, however, are micro-influencers. These social stars typically have a follower count of around 10-100K.

While they are less well-known than their macro counterparts, micro-influencers enjoy a closer relationship with their followers. They occupy niche areas such as specific beauty subsets (think makeup tips for women with vitiligo), eating gluten-free, or mental health. Their community is intimate and closely-knit, and they’re more affordable as a result of a smaller follower count (though still substantial).

Why do nonprofits need influencers?

We’ve established the difference between macro- and micro-influencers. The former has a large following, so partnering with a macro-influencer for a marketing campaign gets your nonprofit seen by the masses.

But this isn’t the goldmine it first seems. The fact is, while macro-influencers generate more awareness, their campaigns lack engagement.

Research shows that when an influencer’s follower count reaches 1K, the ratio of likes to comments peaks. And when an influencer’s followers exceeds 100K, engagement starts to level out.

Micro-influencers, on the other hand, reach a far smaller audience but with much higher engagement. Their close bond with their followers means their content is received on a deeper, more meaningful level.

And for nonprofits, engagement is crucial. You could create a macro-influencer campaign that reaches 10,000 people. But if those people don’t care about the campaign—if they don’t engage with it—then it will fall flat.

Nonprofits need micro-influencers because the success of their initiative hinges on making people care, and influencers can make that happen.

How do I choose the right micro-influencer?

The key to a successful nonprofit-influencer campaign lies in choosing a micro-influencer who aligns with your nonprofit’s values.

Start with what your nonprofit stands for and the work you do, and go from there. For example, if you work with sufferers of anxiety and depression, a mental health influencer would be an ideal choice for your nonprofit.

You can find micro-influencers in a number of ways. There are plenty of influencer marketplaces that let you easily find influencers, sorted by industry, follower count, social profiles, and more.

But for a quick fix, simply scope out other nonprofits operating within your niche and see who they’ve partnered with. Take a look at their blogs and social media accounts to identify any influencer campaigns, and contact the influencer in question to request a collaboration.

Alternatively, you can search hashtags on social media to see what influencers are already talking about, and what causes might be of interest.

How to launch an influencer campaign for your nonprofit

You know the what and the why. Read on to discover some great influencer collaboration ideas that will grow your nonprofit.

Get your micro-influencer to tell your nonprofit story.

Micro-influencers are characterized by their special relationship with their followers. The interactions influencers have with them are genuine and meaningful—they are real. As a result, they enjoy an honest, trusting follower relationship.

This is a boon for nonprofits. The general public is numb to marketing, either switching over when an ad comes on TV, or switching off when they see one online. But when micro-influencers extoll the benefits of a nonprofit, their followers pay attention.

Use this special relationship to your own advantage and get your chosen influencer to discuss in depth why they partnered with you. They should outline your various initiatives, highlight the work you do, and even meet and interview someone your nonprofit has helped in the past.

Launch a UGC donation matching campaign.

Most brand-influencer partnerships use a contest, competition, or giveaway to grow their business. And while some nonprofits might benefit from this, an even better, albeit similar, idea is to launch an influencer-led user-generated content (UGC) donation matching campaign.

Donation matching is simple, but effective.

Your chosen influencer gets their followers to share an Instagram photo centered around a theme (e.g. if you’re an animal rights nonprofit, they might share a photo of their favorite animal) with a branded hashtag, following and tagging your account. For every photo shared, your micro-influencer donates $1 (up to a given value).

This strategy doesn’t just give you a quick donation boost. It also invites interaction with your social media followers. It creates a conversation with your followers, involving them with your nonprofit work and making them care.

A UGC donation matching campaign also gives your nonprofit a valuable publicity boost, netting you new followers and growing your Instagram account. Combine this with National Giving Day for an added promotional boost.

Involve your influencer to reach unengaged individuals.

Many nonprofits struggle to make their work seem real to donors. For example, let’s say you’re a nonprofit working with individuals suffering from Lou Gehrig’s disease. You might find it difficult to make people with no experience of the disease connect with your cause on a meaningful level, simply because it feels too distant.

Micro-influencers are the perfect conduit for breaching that distance. Invite your influencer to see first-hand the vital work you do, and encourage them to share their experience on social media.

Of course, sensitivity and confidentiality is crucial here. But when you and your micro-influencer work together to create a nuanced, insightful social campaign, you turn otherwise indifferent individuals into engaged, committed donors.

Influencer collaborations are an effective and affordable marketing strategy for nonprofits. They drive engagement and get your organization seen, helping you reach a whole new audience of potential donors who might otherwise not know your nonprofit. Use the tips above to create an influencer partnership that grows your nonprofit now and well into the future.

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Kayleigh Alexandra is a writer at Micro Startups, your go-to place for charity news and insight. She loves writing about all the great nonprofits, startups, and entrepreneurs that make waves in their industry. For more of her work, check out the blog today @getmicrostarted.

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I’m Kristi Porter, and I help cause-focused organizations understand and execute effective marketing campaigns so they can move from stressed to strategic. Your resources may be limited, but your potential isn’t. Whether you’re a nonprofit, social enterprise, or small business who wants to give back, I’ll show you how to have a bigger impact.

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The Four Missing Pieces of Your Partner/Sponsor Presentation

Partnering with a small business—is it on your organization’s bucket list? It is for many small nonprofits and social enterprises. But it also seems a little elusive, doesn’t it?

First, you have to find the right potential partner. Then, you have to do a little wooing and a little schmoozing. After that, you might just secure your invitation to present your cause to the decision-makers.

It’s no small accomplishment making it this far! But finally, you’re in the room. So, what do you say?

Whether you’re seeking funding, in-kind-services, volunteers, or something else, there could be a lot riding on this meeting, both in the short and long-term. So, you certainly want it to go well.

If you’ve presented to a small business before, I’d urge you to dust off your presentation to look for the errors below. If this is your first time, consider it a head’s up.

Avoid these mistakes to have your potential partners and sponsors jumping at the chance to say, “YES!”

Missing Piece #1: Your Potential Partner

Is it possible that you’ve gone and made the whole presentation about you? That’s a common mistake.

Maybe you’re nervous, and all you can think of is you. Maybe you think you have something to prove. Maybe you want to adequately make your case. Maybe you’re just so darn excited about your organization that you can’t wait to share it.

All of those are perfectly normal, but while you’re fine-tuning your pitch, be sure to bring your potential partner or sponsor into the mix as well.

Don’t just let them see your mission. Let them see themselves in it.

Missing Piece #2: The Customization

Building on #1, I’d encourage you not to simply cut and paste your last presentation. Sure, many of the same elements will be included. But, where possible, tailor it to the people in the room. And I don’t just mean replacing the last guy’s logo with another one.

I always think it’s good to include both a mix of stats and stories. So, is there new research to support this potential partner or sponsor being involved? Is there a story that fits with the mission of the company? Is there something you’ve seen this business say or do that should be included?

Where can you edit a presentation to make it look like it was created for their eyes only? This kind of customization shows that you value them and their time. And it demonstrates that they are the perfect partner or sponsor for the need at hand.

Missing Piece #3: Your Confidence

Are you desperate for this help? Don’t show it! I know this can be very hard. I’ve been there myself—plenty of times.

But people don’t often give to desperation, unless it’s due to something like a natural disaster or tragedy. Otherwise, it can be a little scary for those at the opposite end of the table to realize all your hopes and dreams rest on them. Unless they have a savior complex, they may run in the other direction if you let them know that they are your Plan A, B, and Z.

If their decision is the make it or break it kind, it’s a lot of pressure to put on them. And, like individuals, companies want to give where they feel their money/services will be safe and best utilized.

So, what’s the alternative? Ask out of confidence. You undoubtedly have a lot to bring to the table, so put your best foot forward. Even if you really are desperate, make a list of the ways you benefit this company, what you do well, and the people you serve. I have no doubt it’s a great list, so let it inspire you as you make your “ask.”

Cause marketing (where for-profits team up with non-profits) is only growing, and that works in your favor. It’s possible this company has been waiting for someone like you!

Missing Piece #4: The Relationship

Listen closely, because this is the most important part. Unless you are just looking for a one-off favor or check, this is the part you can’t skip: the relationship.

The key piece of your presentation is the conversation that happens before and after the projector turns on and off. No amount of beautifully-designed slides will ever replace the dialogue between you and your potential partner or sponsor.

Don’t have designer on staff? This should be great news!

Take the time to cultivate this relationship for long-term success. Get to know the company and the people behind it. How can your mission enrich their efforts? They want to make an impact, too. It just might look different.

After the check’s in the mail, how can you continue to nurture the relationship for the future?

Not only is it easier to retain previous partners/sponsors rather than finding new ones, but building an engaged and dedicated partner could have significant, long-term effects for both of you.

I’m definitely an advocate of a good-looking presentation, but more than that, I’m an advocate of building relationships.

So, don’t leave these four pieces out of your next partnership or sponsorship presentation. They could just mean the difference between a yes and a no.

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Need a ready-to-edit presentation perfect for your next partner or sponsor meeting?

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I'm Kristi Porter, and I started Signify to provide writing and consulting services to nonprofits and for-profit organizations with a social mission, primarily through copywriting, marketing, and business communications. I also teach solopreneurs and small businesses how to incorporate philanthropy and giving strategies. I believe that cause-focused organizations are the future of business. You're proof that companies can both make money and do good. And I'm here to help you get noticed and grow. When you succeed, we all win.

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6 Mistakes to Avoid When Partnering With a Small Business

So, you’ve landed that coveted partnership or large sponsorship with a small business. Feels great, doesn’t it? It’s a goal for many nonprofits and social enterprises, and if you’ve made it this far, you’re ahead of the curve.

However, securing the relationship shouldn’t be your goal. You need to work at making it successful…for both of you. By doing so, you’ll ensure a long-lasting relationship, and it will give you the confidence and reputation needed to repeat the process.

A successful partnership with a small business can lead to more money, more volunteers, a larger network, and much more. Plus, it gives you other people who will champion your cause.

Last week, we talked about the mistakes that small businesses should avoid when partnering with nonprofits. Today, we’ll chat about the mistakes you should avoid on your side of the relationship. Because not only should you play your role in making the partnership a success, but ultimately, it’s the only thing you can control.

Mistake #1: Don’t Explain the Benefits to the Small Business

Even the most generous of sponsors and partners have to ask themselves at some point, “What’s in it for me?” This isn’t rude or crass. It’s natural when thinking about entering into this kind of relationship. After all, they have a business to run.

Philanthropy often comes out of excess resources, whether that’s time, money, or something else. Businesses need revenue to keep their doors open and their lights on. So, while they often want to give out of the kindness of their hearts, they also realize that giving back is good for business.

So, be proactive and answer their question. Don’t let it be a distraction or guesswork on their part. This may only become a nagging feeling that grows as time passes.

Try to include both altruistic and practical answers. Altruistic options may be things like goodwill or higher employee engagement. Practical ideas could include press opportunities, showing off their logo on your website, or even single points of contact for streamlined communication. Think about what you can do to make the partnership intentional and beneficial.

Mistake #2: Don’t State Exactly What Your Nonprofit Needs

I get it. Having this kind of sponsorship or partnership within your grasp is incredibly tempting. And it’s easy to just accept whatever the business wants to offer you, even if you don’t need it.

However, you have to think of your organization first. If someone offers to create a new website for your nonprofit, for example, but you had a redesign done a year ago, don’t accept it just because it’s handed to you on a silver platter.

If a small business approaches you to partner, leave no room for ambiguity. Ask for exactly what you need. At times, there may be a compromise or alternative you hadn’t thought of, which is another great solution. But if they are only willing to give something you don’t need, this won’t serve you well in the end. And, honestly, other than getting your organization’s name on their resume, it won’t serve them well either.

The goal is to create a partnership or sponsorship that benefits you both, and one you’ll want to continue into the future.

Mistake #3: Don’t Follow-Through on Your Commitment

This advice requires me to dish out a little tough love. Nonprofits are especially understaffed and under-resourced. But, if you make a promise—keep it.

There may be all kinds of fancy benefits you list on a sponsorship or partnership package or presentation. I know you want to do everything you can to sweeten the deal.

But for the sake of your organization and the company you’re talking to, don’t include anything you don’t think you can follow through on. Broken promises can cost you much more than a relationship.

Even if you feel like you don’t have a lot to offer, keep it simple. Follow-through. And over deliver.

Be an nonprofit or social enterprise that keeps their word.

Mistake #4: Keep the Partnership a Secret

This mistake builds on a little of what we’ve already talked about, but in general, one of the best things you can do for your corporate partners is talk about them. It’s a fine line for them to do it themselves. They want to do good—and shout it from the rooftops—but they also don’t want to come across as sleazy or exploitive. So, this is something you can help them with.

Use your email campaigns, social media, and events to talk about what an awesome partner they are, and all they’ve done for you. This is also an easy way to get them to stick around.

Side benefit: It may also encourage other small businesses to work with you as well. It’s always encouraging and comforting to see a proven path to success.

Mistake #5: Ignore Those Bad Vibes

I’m not much of a “woo woo” person, but I do believe in intuition. And as I mentioned in last week’s post, I had to let go of a client that I knew better to work with in the first place. From the initial conversation, I knew this organization wasn’t going to be a good fit, even though they seemed like an ideal client on paper.

But I made excuses, thought it would get better, and jumped in anyway. And things went bad quickly. It was two very long months of working together before I decided to let them go. Meaning, it definitely wasn’t worth the money!

So, learn from my mistake. Don’t ignore those bad vibes! If things feel off in those initial conversations, don’t establish the partnership. It will likely be more trouble than it’s worth.

Even if your nonprofit or social enterprise is desperate, this company will almost certainly not be your answer. After all, if they can’t deliver on their promises, end up taking more time than you have to give, or deplete your man power or energy, you could end up worse off than you started. It would’ve been better to stay away and find a better corporate partner to begin with.

Finding the right company will be worth waiting for!

Mistake #6: Start With a Large, Make-It-Or-Break-It Project

It’s always best to start small, and with several conversations. Don’t rush into a partnership. Hopefully, there will be plenty of potential for a long-term relationship, but it doesn’t have to start that way.

Test the waters to see if it’s a good fit for both of. Make sure you can each hold up your end of the bargain, and build on that success.

Beginning with a big project, especially one where there’s a lot riding on it, will add unneeded stress and pressure. While it may work out for the better, I just don’t recommend it.

Instead, start with a small win. That will create a strong foundation.

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PSST: We’ve also built a sponsor presentation template if you need help getting started!

It’s customizable and easy-to-use, so all you have to do fill in your info and schedule the meeting!

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I'm Kristi Porter, and I started Signify to provide writing and consulting services to nonprofits and for-profit organizations with a social mission, primarily through copywriting, marketing, and business communications. I also teach solopreneurs and small businesses how to incorporate philanthropy and giving strategies. I believe that cause-focused organizations are the future of business. You're proof that companies can both make money and do good. And I'm here to help you get noticed and grow. When you succeed, we all win.

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