Charities Working with Businesses

An Introduction To Corporate FundraisingCorporate Partnerships can bring many benefits. They can provide much needed funds from marketing or community budgets, good PR, brand awareness, awareness of corporate social responsibility, volunteers and gifts in kind.

However, without the correct preparation, they have the potential to bring with them problems and conflicts. Much will depend on how the relationship is set up and the preparation undertaken right at the beginning.

Commercial Participators

A commercial participator is defined as a person or organisation that:

  • Carries on for gain a business other than a fundraising business
  • In the course of that business engages in a promotional venture and
  • Represents either that a donation will be made to charity in connection with the sale or supply of goods or services or that some or all of the amounts paid for such goods or services will be passed to charity.

Many businesses will fall into this category and are therefore legally obliged to have a contract with a charity and also ensure that they provide donors with a solicitation statement before any donation is handed over.

Contracts and Agreements

It is often normally a legal requirement for a charity to have a contract with a business they are in partnership with. The contract should set out all obligations and ensures all parties know where they stand.

The Institute has produced a model contract that can be used by charities and businesses, as well as a Best Practice for Fundraising Contracts guidance.

Please note that the model contract and Code do not constitute professional advice.

The Institute advises that organisations should always seek proffessional advice before entering into a contract.

Solicitation Statements

Commercial Participators will need to make a solicitation statement to donors before money is handed over. A solicitation statement tells supporters which organisation is benefiting and how much the organisation will receive from the sale.

Code of Fundraising Practice and Guidance

The Charities Working with Business Code of Fundraising Practice provides best practice guidance on issues that charities need to consider and also sets out some legal obligations that may arise.

The Code and guidance set out the law and best practice for a range of fundraising techniques. If encouraging donations to be made directly from employees' pay when working with businesses, the Committed Giving in the Workplace guidance will be particulalry relevant. The Best Practice for Fundraising Contracts guidance may also be helpful when working with businesses.

Other Institute Resources

The Institute has a number of Special Interest Groups which are groups of fundraisers with specific knowledge of different fundraising techniques. The Corporate Fundraising Special Interest Group is a group of volunteers who specialise in charities working with business. It provides a networking and learning experience for these fundraisers.