Legal Question in Business Law in California
10% of purchase to go to non-profit
Hi,
Is it legal to put a statement such as
the below on my website to tell
customers that 10% of each
purchase will go to a non-profit?
Or do I need an explicit partnership
with a non-profit?
-------------------------------------
We're donating 10% of each
purchase to three non-profit animal
organizations per year. Each
organization will receive 10% of our
proceeds earned within a four month
time period. At the end of the specific
time period, the organization will be
presented with a check from us.
3 Answers from Attorneys
Re: 10% of purchase to go to non-profit
I agree with Mr. Muntean and Mr. Stone.
Note also that your proposed language is internally inconsistent. It says both that you will donate "10% of each purchase" and "10% of [y]our proceeds". "Proceeds" generally means only the profit on a transaction, not the entire amount of the transaction. If you promise to donate 10% of the total purchase price but actually donate only 10% of your profit, you will be committing fraud.
Re: 10% of purchase to go to non-profit
Although this is a very noble gesture, no kind act is ever easy. The California Attorney General regulates charities and the organizations that raise money on their behalf. Thus, the fund raising effort you propose will need to satisfy the attorney general regulation requirements. While this sounds like a pain, the consequence of not doing so could be a lot more painful.
Re: 10% of purchase to go to non-profit
By "non-profit" I am assuming you mean "charitable," the two terms are not synonymous. You must fulfill any promise that you make in this regard, but I'm not aware that you need to have an advance arrangement with a charity.
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