Corporate Partnership Agreement Charity

Corporate Partnership Agreement Charity

Here are some recent examples of successful charitable partnerships we have been involved in: We helped ASOS develop a partnership with a non-governmental organization (NGO) in Kenya that creates new opportunities for women in the garment sector. The result: A dynamic partnership with common goals, clear governance and actionable plans that add value to both the company and the community. A service contract can be a little more complicated and involve a deeper form of cooperation where each party commits to providing services without transferring money from one party to another. Services may also be addressed to a common category of beneficiaries and not to each other. For example, several non-profit organizations that support healthy families but focus on different aspects (para. B example, domestic violence, child abuse, mental health) may enter into an agreement to provide their respective services in a coordinated manner or perhaps in a shared centre. Not-for-profit organizations may want to enter into joint ventures with for-profit organizations to raise capital, access the expertise of their for-profit venturers, and take advantage of opportunities not otherwise available to them. For profits may want to enter into joint ventures with non-profit organizations to gain access to new sources of capital, certain assets of the nonprofit organization (e.B. Intellectual property rights), take advantage of available tax credits (such as the federal low-income housing tax credit) and receive greater community or political support. As with the “partnership” option described above, the choice of company for the joint venture must be made carefully.

Topics to be addressed that are unique to nonprofits include: A merger is sometimes called the ultimate collaboration between two parties. In the most typical form of merger, the remaining company is called the surviving company, and the company that emerges from a separate legal existence is called the defunct company. In the event of a merger, the surviving company inherits not only all the assets of the defunct company(ies), but also all its liabilities and obligations. Therefore, it will be extremely important for the parties to exercise thorough due diligence prior to a merger agreement. This included holding workshops with CSR representatives to define the objectives, selection criteria and results of partnerships, identify potential charities and structure submissions with charities. The result: a new strategic partnership that involved employees in all offices and created value at the national and municipal levels. We worked with The Alliance to find a new charitable partner that creates value for the company and the communities in which it operates. We share our ideas on the true value of charitable partnerships for businesses.

What is a charitable partnership and how can it benefit both businesses and charities? How a company works with a charity depends on the desired outcome and goals of the partnership, the resources available, and the scope of the partnership. For example, a charity partner may have a single fundraising goal with a company equivalent to an annual corporate donation and an employee fundraiser. However, more and more charitable partnerships are exploring other sources of value and becoming multi-layered, with people, products and profits. When a business and charity work together, they can have a real social impact through, for example, volunteering, product donations, asset sharing, and corporate and employee donations. For not-for-profit organizations that are looking for close collaboration on a particular program and do not want to use an external tax sponsor, creating some form of “partnership” may be a viable alternative. A true partnership would be owned by both parties, and each party would be jointly and severally liable for all liabilities of the corporation. A limited liability company (LLC), including a low-profit limited liability company (L3C), would be owned by both parties, but could be structured in such a way that the LLC`s responsibilities do not normally increase for the owners. A for-profit corporation, including a charity or social purpose corporation, would be owned by both parties and would also offer limited liability protection to its owners.

A not-for-profit corporation that does not have an owner would be governed by a board appointed by both parties, which could retain other rights (for example. B, the rights of a voting member) in respect of the corporation. The choice of the body responsible for hosting cooperation efforts should be made carefully and preferably with the assistance of appropriate legal counsel. An organization should decide at the outset whether it wants to enter into a binding agreement with another party or simply a mutual agreement where neither party is legally responsible for compliance with the terms. First, standard legal documents are often difficult for nonprofits to find. Several organizations, such as Public Counsel, offer excellent corporate governance models, and tax sponsorships and other documents can be found through internet searching. However, it can be difficult to find examples of other documents, especially documents on nonprofit programs and other activities specific to nonprofits. We wanted to start by filling that gap in the resource base.

A resource sharing agreement can make it easier to share office space, equipment, and even employees for greater efficiency. Such agreements are common with small affiliated non-profit organizations such as a 501(c)(3) public charity and an associated 501(c)(4) social welfare body, but may also include otherwise unrelated organizations. In particular, resource-sharing agreements should specify which resources are to be shared and how costs are allocated to each party. In general, an organization referred to in paragraph 501(c)(3) that participates in such an agreement must ensure that it does not pay more than the fair market value of the agreement if it uses a party that is not referred to in section 501(c)(3), and in particular if it makes any form of payment for profit. Resource-sharing agreements can trigger many problems with leases, insurance, licenses, permits, employees, and independent contractors. Therefore, not-for-profit organizations must enter into these agreements with the utmost care. A Memorandum of Understanding or Memorandum of Understanding may be appropriate if the parties do not want a binding agreement. But organizations need to be very careful when writing a letter of intent if they don`t want it to be legally binding. A letter of intent can easily become a contract because of the words, regardless of the name of the document. Add to the confusion that it`s common among nonprofits to call a contract a memorandum of understanding because it sounds more user-friendly and collaborative. In general, this is not a good idea as it can lead to misunderstandings between the parties about what each party wants in case the other party does not behave.

A license agreement generally provides for the right of one party to use certain intellectual property of another party. Intellectual property includes trademarks/service marks (p.B. names, logos), copyrights (p.B. writings, music, art, film), patents (p.B. inventions, designs and models) and trade secrets (p.B. mailing lists). A non-profit organization may license the use of its name and logo as part of its support for an event or the use of its film to enable a wider audience and revenue generation. If a binding agreement is desired, the parties must enter into a written contract clearly setting out each party`s obligations and promises to the other party.

The contract should also cover the duration of the agreement and how the contract can be terminated. To learn more about how we advocate for and support charitable partnerships, visit our business consulting page or contact the corporate@cafonline.org team. A charitable partnership is a collaboration between a company and a charity that shares a passion and commitment to lasting social change. A simple form of cooperation is one in which one party provides services to another party in exchange for money or another form of consideration (value). For example, a not-for-profit research corporation may make its research services available to a not-for-profit service provider in a way that benefits both parties and promotes their respective missions. The research company is paid to conduct research that can have a valuable application for which the company itself is not designed. The service provider may use research for which it is not designed to better serve its intended recipients. But a merger that is concluded with care and care can result in enormous benefits, especially an increase in the efficiency and effectiveness of promoting the missions of both organizations and a stronger organization to carry out the charitable activities that promote the combined mission. Specifically, a merger can increase the ability of organizations to expand their service area, programs, and internal capabilities to create new and better ways to advance their mission. Mergers are complex transactions that typically require negotiations on issues such as adding members of the board of directors of the defunct corporation to the board of directors of the surviving corporation, maintaining certain programs previously performed by the defunct corporation, and decisions on which, if any, employees of the defunct corporation will continue as employees of the surviving corporation. In particular, if the parties were not sufficiently prepared, a merger can lead to many potentially unforeseen consequences such as land transfer taxes, breaches of contract (e.g. B if the other party does not notify the merger) and the loss of expected future donations.

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