Cause Marketing That Works—And Complies

You want to give back and grow sales. Great. But if your “we donate a portion of proceeds” copy is vague—or worse, noncompliant—you risk blowback, penalties, and broken trust. Let’s design cause marketing that moves product, funds impact, and passes the sniff test.

Start with alignment, not optics

Pick a cause that’s logically connected to your brand and community. If you’re a clinic, support access to care; if you’re a design studio, fund local arts education. The closer the fit, the less you have to “sell” the why—and the more authentic the story.

Questions to answer before you announce anything:

• Which specific nonprofit (legal name) benefits?

• Exactly how much per unit or % of net goes to them?

• What’s the campaign start/end date?

• Is there a minimum/maximum contribution?

• How will we report results publicly?

(You’re about to see why this list matters.)

Know the rules: disclosures, contracts, and—yes—registration

Cause marketing often triggers “commercial co-venturer” or “charitable sales promotion” laws in many states. Translation: some states require specific disclosures, written contracts, and in certain places, registration, bonding, and reporting. The exact rules vary, but the pattern is consistent: don’t be vague, don’t hide the math, and follow the paperwork.

The disclosure standard you should live by

The BBB Wise Giving Alliance Standard 19 sets a clear bar: disclose (1) the per-purchase donation amount, (2) the campaign duration, and (3) any maximum or minimum total donation. If you leave this out, people assume the number is bigger than it is—and that’s how you lose trust.

The state compliance reality (not exhaustive)

• California: commercial co-venturers must register with the Attorney General (Form CT-5CF), renew annually, and file annual financial reports (CT-6CF).

• Massachusetts: requires a $25,000 surety bond for commercial co-venturers and filing of contracts; timing and details governed by statute and AG practice.

• Other states have mixes of registration/contract filing/reporting—several require filings before the campaign goes live, and some require post-campaign financial reports. When in doubt, get counsel that’s done this before.

Bottom line: disclose clearly everywhere (site, product pages, email, social, checkout), have a written contract with the charity, and check state triggers where you will sell/ship.

Build the campaign like a grown-up

1) Write the governing one-pager (internal + for counsel):

• Parties (you + the 501(c)(3) legal name and EIN).

• Offer mechanics: “$X per [unit]” or “Y% of net/price” (define “net”).

• Start/end dates; geographic scope (states you ship to).

• Minimum/maximum donation; payment schedule (e.g., monthly remittance with accounting).

• Reporting and publicity rights (logo use, approvals).

• Cancellation clause if either party messes up.

2) Draft the public disclosure (everywhere):
“From Nov 10–Dec 31, we’ll donate $5 per candle sold to [Nonprofit], up to $25,000 (min guaranteed $5,000).” That’s the whole story in one sentence—clear, traceable, and BBB-compliant.

3) Prepare the accounting:

• Separate liability account for campaign proceeds.

• Monthly remittance with a simple statement: units sold × per-unit amount (or % of net), returns deducted, totals to date.

• Public wrap-up post with the final check amount and receipt (privacy-safe).

Creatives that convert without the guilt trip

• Show the product outcome first; the cause amplifies the buy, it doesn’t replace value.

• Use real stories from the nonprofit (approved in writing).

• Keep visuals consistent across site, email, SMS, and in-store.

• Add a progress bar (if capped) to create urgency.

Digital setup checklist (90 minutes)

• Add a site banner with disclosure line.

• Create a landing page explaining the campaign (FAQ: “How much is donated?” “When do you pay?” “How do returns work?”).

• Tag all campaign SKUs to pull units sold automatically for your remittance statement.

• Add order confirmation copy with the disclosure line.

• Create two post-purchase emails: a) story of the nonprofit; b) midpoint progress update.

Train the team (scripts win deals)

• “This month, $5 per bag goes to [Nonprofit], Nov 10–Dec 31—we’ve guaranteed $5,000 and capped at $25,000.”

• “Your purchase helps fund [specific program]. Full details and receipts are on our site.”

Avoid common pitfalls (seriously)

• Vague “portion of proceeds.” Hard no. State the number.

• No contract. If you can’t summarize the deal, you can’t disclose it.

• No registration where required. If you sell into CA or MA (or other regulated states), assume you have obligations.

• Silence after the campaign. Publish results—your customers bought into the story.

• “Checkout shaming.” Round-up asks can work, but don’t pressure; make it optional and transparent.

How to stand up a compliant campaign this week

Day 1: Pick the nonprofit; draft the one-pager; send for approval; start disclosures.
Day 2: Build the landing page; tag SKUs; add banner and checkout language; train team.
Day 3: Confirm any state filings (where you ship). Submit what’s required.
Day 4: Launch teaser email/SMS; go live on site and social.
Day 10: Mid-campaign update with units sold and running donation.
End: Wire funds within 10 business days; post receipts; recap results.

Bonus: When cause marketing becomes PR risk

Courts have scrutinized cause-framed advertising that confuses consumers about whether a company is itself a charity or how funds flow. Don’t blur lines—say who you are and exactly how the charity benefits. Transparency wins.

Resources

• BBB Wise Giving Alliance — Standard 19 (disclosures for cause marketing). No Kid Hungry

• National Council of Nonprofits — overview of commercial co-ventures. National Council of Nonprofits

• California AG — commercial co-venturer registration & reporting. California DOJ Attorney General

• Massachusetts law — commercial co-venturer bond requirement. Massachusetts General Court

• Engage for Good — state registration/filing overview. engageforgood.com

Real Talk

Cause marketing should earn sales because the offer is strong and the impact is real—and it should be squeaky-clean on compliance. If you can’t say the amount, the dates, and the cap out loud, you’re not ready to launch. We’ll help you pick the right cause, write the disclosures, check state triggers, and build the campaign assets—fast. Book a Black Mammoth Power Hour.