Note: These requirements apply to the company running a charitable sales promotion with a nonprofit partner. Nonprofits may have separate compliance obligations not covered here.
In California, a commercial coventurer is a type of professional fundraiser. It is a person or organization who, for profit, is primarily engaged in a business other than in connection with raising funds for charitable purposes. A commercial coventurer raises money for charities by giving the charity a certain percentage from the sale of goods or services. A commercial coventurer represents to the public that the purchase or use of its goods or services will benefit a charitable organization. Unless exempt under Government Code section 12599.2, subdivision (b), a commercial coventurer is required to register and report to the Attorney General.
California requires commercial co-venturers to register annually with the Attorney General’s office before engaging in charitable sales. This upfront filing helps the state monitor charitable partnerships and reinforces a standard of accountability for fundraising activities.
Before launching any charitable sales promotion, California requires co-venturers to submit a copy of their agreement with the benefiting nonprofit. This filing ensures the state can verify the terms of the partnership and the intent of the campaign in advance.
To maintain transparency around charitable promotions, California requires co-venturers to report campaign results annually. This filing details funds raised and ensures the state can track how donations are handled and distributed.
Each year a co-venturer engages in charitable sales in California, they must renew their registration with the Attorney General. This annual filing reinforces the state’s oversight of ongoing fundraising activities and ensures compliance remains up to date.
California maintains one of the more robust regulatory frameworks for commercial co-venturers. From pre-campaign registration to post-campaign financial reporting, the state emphasizes transparency at every stage of charitable sales activity. Businesses engaging in these promotions should build compliance into their timelines and budgets early on. Staying ahead of filing deadlines helps avoid disruptions and ensures a smooth, compliant campaign.
