The overall success of cause marketing campaigns in the United States has caught the attention of nonprofit organizations and for-profit businesses, making such ventures in an international setting look tempting.
As with such agreements in the USA, cause marketing campaigns can pay big dividends around the world, but as with agreements in the USA, there are challenges that can arise, problems that must be anticipated and dealt with or avoided.
During the 2015 Cause Marketing Forum, Terri Seligman of Frankfurt Kurnit Klein & Selz and Ed Chansky of Greenburg Taurig said that any nonprofit manager pondering a cause marketing campaign outside the USA should be aware of the following:
* Charity registration. Many countries require a charity to be registered in the country before any fundraising can be conducted on its behalf.
* Charity spending. Some countries require any money raised for a charity in that country to remain and be spent by the charity in that country.
* Fundraiser registration. Some countries might deem the commercial co-venturer (CCV) company to be a form of fundraiser, with a registration requirement.
* Tax issues — donations. Any amount treated as a “donation” might not qualify for deductions or other beneficial treatment if paid outside the country in question.
* Tax issues – intra-company. If the sponsor pays money from an entity in one country to a related entity in another country before disbursing it to the charity, there could be problems.
* Consumer perception. Consumers in any given country might not respond well to an offer benefiting a foreign charity.
As we celebrate our 36th year, NPT remains dedicated to supplying breaking news, in-depth reporting, and special issue coverage to help nonprofit executives run their organizations more effectively.