Why Charities Need Commercial Participation Agreements.

From 2020 to 2021, there was a 60% increase in businesses raising funds for charities through their sales and this is continuing to rise.??

So what does that mean for fundraisers? And why is it essential for charities to have a legal agreement with every business?

With every negative event there also comes growth and learning. And with impact of a global pandemic, war in Ukraine, refugee crisis and climate change there has been a steep rise in people who want to do something kind*, for many that means donating to charity. One of the most sustainable ways people can do this is to use their business as a force for good and raise money through their sales.?From 2020 to 2021, we saw a 60% increase in businesses raising funds through their sales. And if you think of a business like an individual, this increase was motivated simply by their own desire to do good.

The most recent example of this is the surge in support from businesses raising funds through their sales for Ukraine Humanitarian Appeals.

This support is awesome, and with 5.6 million small businesses in the UK it presents a massive fundraising opportunity.?However,?what many people don't realise is that charities need to make sure businesses have a legal agreement in place before they start raising funds known as a Commercial Participation Agreement. This is to protect the charity, its reputation, as well as the businesses customers.

What is a Commercial Participation Agreement (CPA)?

Known as a ‘commercial participator’, a business needs a legal agreement with a charity if:

• They are raising funds for the charity through sales of a product or service.
• Donate money to charity and tells this to their customers, or
• Encourage sales of their products or services on the basis that some proceeds will go to charity.

This ensures the charity receives the donation that the business pledges.

It also makes customers aware of how their money is being spent as businesses must include a Commercial Participation Statement at point of sale to inform the customer that part of their spending will be donated to the charity e.g '￡2.50 from every candle will be donated to Mind.'

Do all businesses need a Commercial Participation Agreement with a charity?

Yes they do if they are raising money through the sales of a product or service! From sole traders to corporates, florists to estate agents.

CPA's made easy and cost effective.

Charities including WWF-UK, Mind, The British Red Cross, The Rainforest Trust, Women's Aid, Refuge and many more have turned to Work for Good because we make it simple for businesses to create these agreements. This saves these charities a massive amount of time and legal costs.?

We also make sure the charity has the opportunity to nurture their supporters and build a long term relationship (read more about this here).

By taking care of the complex legal stuff, charities can have peace of mind and enjoy the kindness of businesses and their customers too.

Read more about How We Make Sales Fundraising Easy and Charity Success Stories here

Fundraising Regulator has information about these legal requirements here.

* ‘The Kindness Test’ is the world's largest survey on what it means to be kind, two thirds of people asked believe that the pandemic has made people kinder. Devised and analysed by University of Sussex psychologists, it is a detailed online questionnaire which ran from 31 August to 4 October 2021. More than 60,000 people took part.