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A commercial co-venture (CCV) is a partnership where a business donates a portion of its sales to a nonprofit. It's an effective way to support a cause while promoting products. However, businesses must register as CCVs and adhere to reporting requirements in many jurisdictions.
Registration requirements vary by state, but often include filing the commercial co-venture agreement, registering before the campaign begins, and submitting financial reports after it ends. Some states also require bonds or additional disclosures, making multi-state campaigns more complex to manage. There are around 8 states that have varying degrees of requirements.
To stay compliant, businesses need to secure written consent from nonprofits, clearly disclose donation terms to consumers, track funds accurately, and meet state-specific filing and reporting requirements. These requirements do vary by state. Using a centralized platform helps ensure nothing is missed as campaigns scale.
Charitable solicitation compliance refers to the laws governing how donations are requested and collected. This includes registering in certain states, following disclosure rules, and ensuring donations are handled and reported properly.
Common examples include donating a percentage of sales from a product, round-up donations at checkout, limited-time promotions tied to a nonprofit, or campaigns where customers choose a charity to support. These campaigns are widely used in ecommerce, retail, and digital platforms.