What Are Commercial Co-Ventures? A Guide for Nonprofits to Raise Funds While Staying Mission-Focused

Nonprofits are constantly exploring new ways to fundraise while ensuring their efforts align with their mission and maintain compliance with regulations. One powerful yet often underutilized tool for fundraising is the commercial co-venture. But what exactly is a commercial co-venture, and how can it benefit your organization without straying from your core purpose? Let’s break it down.

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What Is a Commercial Co-Venture?

A commercial co-venture (CCV) is a partnership between a nonprofit and a for-profit business where the business agrees to donate a portion of proceeds from sales to the nonprofit. This type of arrangement benefits both parties:

• The nonprofit raises funds to support its mission.
• The business aligns with a cause, enhancing its public image and engaging socially-conscious consumers.

For example, a pet nonprofit might partner with a business selling eco-friendly dog toys. The agreement could stipulate that 25% of the proceeds from each sale will go to the nonprofit, allowing the organization to raise funds while the business gains new, mission-aligned customers.

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Legal Requirements for Commercial Co-Ventures

While CCVs are an excellent fundraising tool, they come with legal requirements to ensure transparency and compliance:

1. Written Agreement: The partnership must be formalized in a written agreement outlining the terms, including the percentage or amount of sales benefiting the nonprofit.
2. State Filing Requirements: Many states, like Connecticut, require nonprofits to file CCV agreements with regulatory authorities before the campaign begins.
3. Transparency in Advertising: All promotional materials must disclose how much of each sale benefits the nonprofit (e.g., "25% of proceeds go to [Nonprofit Name]").
4. Accounting and Reporting: The business must maintain records of the campaign’s financial results and provide final accounting to the nonprofit.

Navigating these requirements can feel daunting, but that’s where Solve comes in.

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How Solve Simplifies Commercial Co-Ventures for Nonprofits

At Solve, we take care of the complexities of commercial co-ventures so nonprofits can focus on their mission. Here’s how we do it:

1. We Handle the Legal Details: Solve drafts the commercial co-venture agreement and ensures all required filings are completed on time, keeping you compliant with state and federal regulations.
2. Transparent Reporting: We use Shopify to manage your e-commerce store, providing detailed quarterly reports so you can see exactly how much has been raised.
3. Clear and Compliant Advertising: All product pages and marketing campaigns include clear, compliant messaging about how proceeds benefit your organization.
4. No Operational Headaches: Solve manages the store setup, inventory, and Google Ads campaigns, so your team can focus on advancing your nonprofit’s mission.

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The Benefits of a Commercial Co-Venture with Solve

By partnering with Solve, your nonprofit can:

• Generate Sustainable Income: A consistent revenue stream from product sales complements traditional donations.
• Increase Awareness: Every purchase spreads your message to new audiences.
• Stay Mission-Focused: With Solve handling the operational and legal work, you can focus on the programs and services that matter most.

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Ready to Explore a Commercial Co-Venture?

A commercial co-venture could be the game-changer your nonprofit needs to achieve financial stability while staying true to your mission. At Solve, we’re committed to making this process seamless, transparent, and impactful for your organization.

Let’s talk about how we can partner to empower your mission through innovative fundraising solutions. Contact us today to learn more!