What is a Corporate Fundraising Agreement?
A corporate fundraising agreement is a written contract between a charity and a company that outlines how they will work together, usually to raise money.
Why is Having an Agreement Important?
It is often a regulatory requirement and, even when not, it can be helpful, because it ensures both parties understand their roles, responsibilities, and legal obligations, protecting the charity and donors.
When Must a Charity Have a Corporate Agreement?
- Where a charity is entering into an agreement with a commercial company being paid to raise funds, there are very specific requirements.
- The Fundraising Regulator requires charities to have a written agreement when working with paid third-party fundraisers or commercial partners to raise funds.
- These are called Commercial Participation Agreements (CPAs).
- You need a robust agreement where there is commercial benefit to the company, such as sponsorship.
- Even for other relationships, such as a charity of the year agreement with a small local company, having an agreement is usually still a good idea.
What are the Key Things A Charity Needs to Consider Before Entering into an Agreement?
Charities should:
- Before entering into an agreement, conduct proportionate due diligence, including checks on the company's financial standing and reputation, to ensure the relationship will not harm the charity’s credibility.
- Make sure that you company agreement is clear, accessible and in place before the partnership begins.
- If necessary, take professional advice to ensure that the name of the charity is not improperly used or exploited and that the terms of the agreement are precisely drafted and that the interests of the charity are fully protected.
- Ensure the charity has the right to prevent future use of its name by the commercial partner, if you aren't satisfied with the partnership.
- Give careful consideration to suitable provisions for terminating the agreement.
What Should be Included in a Corporate Fundraising Agreement?
Key details might include:
- The names and addresses of both parties.
- The purpose of the fundraising campaign.
- How funds will be raised and shared.
- Marketing and branding rules.
- Compliance with fundraising laws.
Example Corporate Fundraising Agreement
The template below covers all aspects of company agreements, so needs to be tailored to meet each charity's needs. For an agreement to be effective, it's important that all the necessary information about what is planned, and how, when and by whom activities will be carried out is included.
1. Parties to the Agreement
This agreement is between:
- [Charity Name], a registered charity (Registration No: [Number]) with its principal address at [Address].
- [Company Name], a business (Registration Number [Number]) with its principal address at [Address].
2. Aim
This agreement sets out the terms of our partnership to support [fundraising campaign name]. It ensures both parties have a clear understanding of roles, responsibilities, and expectations. Our aim(s) in working together is/are to [purpose], [purpose],....
3. Purpose and Objectives
Clearly define the purpose of the campaign and the desired outcomes, and specify the goals, such as raising funds, increasing brand visibility, or promoting a specific cause. For example.
The purpose of this partnership is to:
- Raise funds for [cause name].
- Increase awareness of [charity name] and its mission.
- Achieve mutually beneficial goals in a transparent and ethical manner.
4. Roles and Responsibilities
Outline the responsibilities of both parties: the charity and the company, and define who will handle marketing, communication, and execution tasks. For example.
Charity’s Responsibilities:
- Provide accurate information about fundraising activities.
- Ensure donations are used appropriately and in line with legal requirements.
- Maintain communication and provide necessary support.
Company’s Responsibilities:
- Promote the fundraising campaign through agreed marketing channels.
- Ensure financial contributions are made as outlined in this agreement.
- Uphold ethical fundraising standards and compliance regulations.
5. Duration and Termination
Specify the campaign duration - start and end dates, and also any key milestones, and include provisions for early termination or renewal. For example.
- This agreement starts on [Start Date] and ends on [End Date].
- Either party may terminate the agreement early with [notice period] written notice.
- If the agreement is terminated, both parties must cease using each other’s name and branding.
6. Financial Arrangements
Include those items below that apply.
- Describe how funds will be raised (e.g., percentage of sales, fixed donation per product sold).
- Plus a description of the.
- Type of contribution which will be made to the charity and.
- The circumstances in which these contributions will be made.
- How much the commercial participator will be paid (if anything) in expenses and the method by which that amount will be calculated.
- How much the charity will receive from the commercial participator, either as a fixed amount (e.g. 10p from every £1) or in percentage terms (10% of sales).
- If more than one charity is involved, details of how the funds raised will be shared between them.
For example.
- [Company Name] will donate [percentage or fixed amount] from [sales, event, or initiative] to [Charity Name].
- Payments will be made on [payment frequency] and documented clearly.
- If multiple charities are involved, funds will be distributed as outlined in Annex A.
7. Marketing and Promotion
Detail how the campaign will be promoted (e.g., social media, advertising, in-store displays) and ensure alignment with the charity's brand guidelines. It can be helpful to include a statement about each party, as this can help to ensure they are portrayed by the other in the way and language they would wish to be. For example.
- Both parties agree to promote the fundraising campaign responsibly.
- [Company Name] must follow [Charity Name]’s brand guidelines when using logos or messaging.
- Any public statements about the partnership must be pre-approved by both parties.
8. Intellectual Property and Branding
Address the use of the charity's name, logo, and any other assets, including that such use ends when the agreement terminates, and specify any restrictions or permissions related to branding. For example.
- The use of [Charity Name]’s logo, name, and materials is permitted only during the campaign.
- Upon termination, [Company Name] must remove references to [Charity Name] from promotional materials.
9. Reporting and Transparency
Define reporting requirements (e.g., regular updates on campaign performance). The charity should monitor and review the performance of a commercial partnership on a regular basis. Ensure transparency regarding funds raised and their allocation. For example.
- The company will provide regular updates on campaign progress and funds raised.
- The charity will monitor fundraising activities to ensure compliance with ethical standards.
10. Compliance with Legal and Regulatory Requirements
Clarity on whether this is primary or secondary purpose trading by the charity, and whether a trading subsidiary may be required. Both parties must understand and agree to comply with relevant legislative and regulatory requirements, including but not limited to data protection law and the PECR Regulations 2003, and the requirements of the Telephone Preference Service, if applicable. Any voluntary regulation that the commercial participator has agreed to be bound by, such as being registered with the Fundraising Regulator. For example.
Both parties will comply with the Law and regulatory guidance, including but not limited to, the following:
- Fundraising Regulator guidance.
- Data Protection Law (GDPR) and Privacy and Electronic Communications Regulations (PECR).
- Requirements of the Telephone Preference Service (if applicable).
- The charity will ensure that it complies with the rules around primary or secondary purpose trading and charity subsidiary structures, if applicable.
11. Safety. How the commercial participator will protect people in vulnerable circumstances and the wider public from unreasonable intrusion on their privacy, unreasonably persistent approaches or undue pressure to donate.
12. Additional Legal Clauses
- Changes to the agreement must be in writing and signed by both parties.
- If subcontractors are involved, they must also comply with this agreement.
- This agreement represents the entire understanding between the parties.
- Disputes will be handled under [Jurisdiction: e.g., UK law].
13. Signatures
Signed by:
[Name], [Title] – For [Charity Name]
Date: [Date]
[Name], [Title] – For [Company Name]
Date: [Date]
13. Annexes
- Annex A: Payment schedule and financial breakdown.
- Annex B: Brand guidelines for campaign materials.
- Annex C: Key contact details (finance, PR, etc.).
Where Can I Find the Regulatory Guidance on Company Fundraising Agreements
Questions & Answers
- Question - do we have to have a a company agreement? Answer - when a charity works with a company or an individual to help raise money, they might need a written agreement. This is especially important if the company or person is being paid to fundraise or if they are promising to donate money from sales. The Fundraising Regulator has rules to make sure fundraising is done honestly and legally. These agreements help protect charities, the businesses involved, and the people donating money.
- Q: What is a commercial participator? A: A company that raises money for a charity through sales (e.g., donating a percentage of product sales). They must clearly state how much will be donated.
- Q: How can charities protect their reputation in fundraising partnerships? A: By ensuring agreements include clear branding rules, ethical fundraising practices, and exit clauses in case of reputational risks.
