Sales-based fundraising is a truly sustainable way for businesses to raise funds for charity and demonstrate to their customers and clients what is important to them.
When a business raises money for charity through their sales (also known as cause-related marketing), they must have a legal agreement in place with each charity they want to support before they start their campaign - this is called a Commercial Participation Agreement.
According to charity law any business that encourages sales on the basis that some of the proceeds will go to charity are known as ‘commercial participators’ and must comply with the relevant provisions of the Charities Act 1992 and 2016 and the Code of Fundraising Practice 2019.
Why it can be tricky
Setting up this agreement takes time and resource, must be compliant with charity law, can come in a variety of forms - and has been known to be up to 80 pages long! Therefore, charities will often ask that the business must commit to a minimum donation amount before they are able to put an agreement in place, create a partnership with them and of course let the business use their logo.
The minimum donation required varies depending on the size and capacity of the charity and could range from £1,000 to £50,000! Understandably, many small businesses aren’t able to reach these minimum commitments and are therefore sadly unable to fundraise for their favourite charities through their sales.
But we think doing good shouldn’t be difficult and that’s why we created Work for Good.
How we make it easy
Through our fundraising platform, small businesses can create their Commercial Participation Agreement via our easy to use donations form in a few minutes, without having to negotiate individual, long contracts with each charity they want to support. The Commercial Participation terms are written into our T&Cs, which both businesses and charities agree to when they sign up and set up a donation.
Within minutes a small business can set up their fundraiser for a cause they really care about and charities can receive donations, feeling confident that they’re protected. Leaving both parties able to enjoy the benefits of small business fundraising minus the usual time required for the complex legal part!