Legal Question in Intellectual Property in California

Fund-raising project for a non-profit organization

We are interested in launching a fundraising project to benefit a couple of national non-profit organizations. This will be a for-profit venture, with 75% of the gross dollars collected going directly to the non-profit organizations. We've asked the non-profit groups for their permission to do this, and after 4 months, they are still dragging their feet and withholding approval. Question -- if we simply state that ''xxx dollars of each consumer's purchase'' will go to this group, and include a disclaimer that the group does not endorse our effort, do we still need their approval?


Asked on 8/29/02, 6:59 pm

2 Answers from Attorneys

Keith E. Cooper Keith E. Cooper, Esq.

Re: Fund-raising project for a non-profit organization

Yes. Use of a company's name (non-profit or for-profit) to raise money without its consent would violate a number of rights. For instance, however you describe it, your obvious intent is to profit from the charity's reputation. That reputation is a property right that belongs to the charity. Going a step further, if one of your customers were to claim you defrauded them, that could, by association, defame the charity. In this one example, the charity would have several causes of action against you.

What you call "dragging their feet" is more likely careful due diligence. If the charity is being properly advised, it will check you out thoroughly and carefully consider all the possible ramifications before agreeing to endorse your efforts. Such due diligence could easily take longer than four months.

This response does not constitute legal advice and no attorney-client relationship is created between the reader and writer.

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Answered on 8/30/02, 10:08 pm
Amy Ghosh Law Offices of Amy Ghosh

Re: Fund-raising project for a non-profit organization

Here's what bothers me...if those non-profit's are not endorsing you..why do you want to do fund raising for them? It will look lot more legitimate if they endorse your fund raiser. You can use their logo to advertise !!!!

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Answered on 8/29/02, 7:42 pm


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