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Cause Marketing
Practical Law Glossary Item 2-502-3854 (Approx. 3 pages)
Glossary
Cause Marketing
Also known as cause-related marketing. A mutually beneficial marketing relationship between a for-profit business and a non-profit public charity for the purposes of promoting both the business' goods or services and the charitable cause. Cause marketing arrangements may take many forms, including where the for-profit business:
- Pledges to donate to the non-profit a portion of the revenue earned from the sale of designated products or services in exchange for the charity's grant of certain promotional rights, such as the ability to place the charity's name or logo on related product packaging and promote the relationship in advertising.
- Provides the opportunity for its customers to donate directly to the non-profit at the point of sale.
- Pledges to donate a certain amount or to match the donations made to the charity by its customers.
- Donates a similar item to the non-profit as purchased by the customer, often referred to as "Buy One Give One."
For more information on the regulation of cause marketing activities and best practices in setting up a cause marketing arrangement, see Cause-Related Marketing by For-Profit Companies Checklist.