Promotion Devilish Details #3: What’s a CCV promotion?

You may already know the abbreviation “CCV” stands for “Commercial Co-Venture”. You might not know these five important details:

1. The definition of a CCV is quite general: Numerous states define an altruistic promotion in which a company motivates a consumer to make a purchase – or even just take an action – to raise funds for a charitable organization as a commercial co-venture.

2. CCV regulations protect all parties: State statutes strive to prevent companies from making charitable marketing claims and then never following through with donating any money. The same rules prevent charities from obtaining a positive halo-effect by illegitimately partnering with a well-known brand. The consumer receives protection in either scenario.

3. A commercial co-venture requires a specific contract: A number of States stipulate that a contract between the for-profit and non-profit companies be filed with the appropriate regulators. The document must reference state statutes, include the registration numbers of the CCV and charitable organization, the amount that will be donated to the non-profit, and more.

4. The promotion must be filed: Numerous states require CCV registration, filing and bonding. Complicating matters is that certain filings need to be completed by the for-profit company while others need to be executed by the charitable organization.

5. Maintain records: State laws require commercial co-venturers to retain records relating to all solicitation activities and a copy of the contract remain on file, to be available on request. Those records should be maintained for a particular period of time. In addition, some states require the commercial co-venture entity to submit a final accounting statement to the state. Typically, donations must be made within three months of the contract execution, and annual reports are required if the promotion period is greater than one year.

If you’d like to discuss an upcoming altruistic promotion, don’t hesitate to reach out – we’re here to help.