Charity and Cause Partnerships: Disclosure and State Rules

A charity or cause campaign can create two different compliance layers. First, a creator may need to disclose payment, free product, or another material connection behind an endorsement. Second, a business promising that purchases benefit a charity may trigger state commercial-coventurer or charitable-promotion requirements. One #ad does not replace the other analysis.

Map money, benefits, and public promises

Start with the actual flow:

• Who pays the creator
• Who supplies products, tickets, or access
• Whether the charity pays or receives funds
• Whether a purchase, code, review, or engagement triggers a donation
• How the donation is calculated, capped, and timed
• Which entity makes the public representation

The FTC Endorsement Guides Q&A addresses a company donating to charity whenever someone reviews a product. FTC staff recommends disclosure when the donation could motivate reviewers and affect how readers evaluate their opinions.

An unpaid creator independently supporting a charity may have no commercial relationship. Do not label genuine advocacy as paid when it is not. Confirm the facts.

Disclose the creator's material connection accurately

Examples, when true:

• “Ad: Acme paid me to promote this charity campaign.”
• “Acme provided my travel; the nonprofit did not pay me.”
• “Acme will donate when you use my code, and I do not earn commission.”
• “I am a board member of the nonprofit.”

If the creator earns commission and a donation also occurs, explain both. Do not let “for a good cause” imply the creator is unpaid. If the nonprofit is the creator's employer or family organization, that relationship can matter too.

Use the sponsored-video review checklist for the final media and the founder and investor disclosure guide for insider relationships.

Review the charitable sales-promotion layer by state

California's Attorney General publishes Commercial Coventurer guidance for businesses representing that purchases or use of goods or services will benefit a charity. It describes registration and reporting obligations for covered commercial coventurers. Massachusetts publishes a separate Professional Fundraiser Guide with its own registration, bond, contract, and filing framework for covered activity.

These examples prove why a nationwide campaign needs state-specific review. Do not generalize one state's definition, exemption, form, fee, deadline, or bond to the country.

Counsel should determine:

1. Which states the promotion reaches
2. Whether each advertiser or participant is a commercial co-venturer or other regulated fundraiser
3. Required charity contracts, consents, registrations, bonds, disclosures, and reports
4. Rules for donation amount, caps, minimums, dates, and geographic limits
5. Recordkeeping and regulator access

Refresh state guidance immediately before launch.

Make the donation promise complete and testable

“A portion of proceeds supports charity” can leave essential terms unclear. State the amount or method when required and avoid a false impression about scale.

Review:

• Exact amount or percentage per qualifying transaction
• Definition of “proceeds,” if used
• Minimum or maximum total donation
• Promotion dates and eligible products
• Participating markets and channels
• Recipient's exact legal name
• Returns, cancellations, code attribution, and refunds
• When and how funds are transferred

Do not imply the charity endorses the product unless authorized. Verify name and logo permissions separately.

Handle cause-campaign edge cases

Donation per review. Disclose the motivation; never condition an incentive on positive sentiment.

Creator waives a fee. If the brand still supplies travel or product, disclose those benefits. If all work is donated, describe that accurately.

Affiliate code splits revenue. Explain what the creator and charity receive and any cap or period.

One-time corporate donation. Do not imply purchases increase a fixed donation when they do not.

Foreign charity: Cross-border fundraising, tax, sanctions, and registration need specialized review.

Event fundraiser: Ticketing, alcohol, gaming, raffle, and local-event rules may add requirements.

Creator's own nonprofit: Ownership and governance should be clear when they would affect credibility. Do not imply an independent charity partnership if the creator controls the recipient.

Minimum guaranteed donation: Explain whether purchases increase the amount above the guaranteed floor. Avoid suggesting every sale creates new charitable value if the sponsor will donate the same total regardless.

In-kind support: Product, services, or volunteer time may be valuable but should not be described as a cash donation. Identify the type of support and any valuation only when substantiated.

Approve the consumer-facing math

Create worked examples before launch. If a $50 purchase produces a $5 donation up to a $25,000 cap, verify that the caption, landing page, code tracking, refunds, and final report use the same calculation. If “net proceeds” is the contractual measure, define it clearly enough that consumers are not left with a misleading impression about what reaches the charity.

Test the promotion after the cap is reached. Scheduled creator posts should not keep saying that a purchase triggers a donation when no additional donation will occur. Assign one owner to pause links, update copy, and tell creators when the material terms change.

Preserve financial and content evidence

Keep charity authorization, contracts, state filings, bond evidence, donation formula, sales records, transfer confirmation, creator benefits, final content, disclosures, and approvals. Reconcile the public promise with actual donations after the campaign.

Publish a final total only after finance reconciles qualifying transactions, returns, and any guaranteed minimum. Retain support for that number and give the charity the records promised by contract and required by applicable law.

General information only, not legal, tax, or fundraising advice. Charity promotions require qualified counsel in every relevant state and country.