In today's rapidly evolving fundraising landscape, charities are constantly seeking innovative strategies to secure support, particularly in the form of unrestricted funding. However, a significant challenge they face is navigating the legal and compliance requirements associated with accepting donations from small and medium-sized enterprises (SMEs).
Legal Barriers to accepting SME Donations
Charities often struggle with accepting donations from SMEs due to the complexities of commercial participation agreements (CPAs). These agreements are legally required when businesses wish to donate a portion of their sales to charity, ensuring transparency and compliance with fundraising regulations.
The problem is that navigating these legal requirements can be very daunting and resource-intensive for charities, particularly smaller ones. The need for legal expertise, extensive paperwork, and ongoing compliance monitoring creates significant barriers, often acting as a major deterrent for SMEs in participating and charities from fully leveraging this potential funding source.
Overcoming the Commercial Participation Agreement Barrier!
Fear not. Help is at hand…
One of our wonderful purpose based clients, Work for Good, offers a ground-breaking platform that addresses the challenges posed by CPA’s by streamlining and automating the process of accepting donations from SMEs.
Here are 5 key ways in which it is working to transform charities fundraising efforts across the sector:
1. By Unlocking New Fundraising Opportunities
The unique platform enables businesses a way to legally support charities through their sales, creating a new, dynamic revenue stream. It has been enabling charities to tap into a broader funding base, to reduce their reliance on traditional fundraising methods and open up new possibilities for financial support.
2. Through Simplifying the Legal and Compliance Processes
One of the significant hurdles in commercial fundraising is navigating the legal and compliance landscape, however the amazing team over at Work for Good have managed to simplify this process by handling the legal aspects of CPAs, ensuring businesses comply with relevant regulations when donating a portion of their sales. This removes a substantial administrative burden from charities, allowing them to accept business support without the legal headaches! Hurrah!
3. Via an increase in Visibility and Reach
Being part of the Work for Good network and also part of their marketing pushes helps to enhance a charity’s visibility within a network of businesses eager to make a positive impact. This exposure can lead to new partnerships and elevate public awareness of the charity’s mission, reaching audiences that may be inaccessible through conventional fundraising channels.
4. Through enhancing Credibility and Trust
Partnering with Work for Good signals to donors and the public that a charity is committed to ethical fundraising and responsible business partnerships. This association can enhance a charity's credibility, build trust, and foster long-term relationships with supporters.
5. By providing a Network with Like-minded Organisations
Work for Good facilitates connections between charities and businesses committed to social good. This networking can lead to collaborative opportunities, knowledge sharing, and mutual support, creating a powerful community dedicated to amplifying social impact.
Discover how Mind have benefited from the platform
The effectiveness of the Work for Good platform can be demonstrated through numerous success stories. For example, to date, 174 SMEs have pledged and donated over £178k in unrestricted funds to Mind via the Work for Good platform.
Transform Your Fundraising for Good, with Work for Good
Work for Good provides a wealth of benefits for charities seeking to innovate their fundraising approaches. From unlocking new opportunities and increasing visibility to simplifying legal processes and enhancing credibility!
By leveraging the power of ethical business partnerships, charities can further their missions and achieve greater social impact which aligns perfectly with our vision here at Ethical Good!
If you work at a charity or purpose-led business and would like to learn more, then get in touch with the Ethical Good team for a chat.
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