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Breast Cancer Campaign

Contracts - Practical tips from a charity perspective Mayaz Rahman – Head of Corporate and Trusts Hannah Daft - Business Development Manager . Breast Cancer Campaign. Breast Cancer Awareness Month – key time for Cause Related Marketing Big business for both parties

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Breast Cancer Campaign

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  1. Contracts - Practical tips from a charity perspectiveMayaz Rahman – Head of Corporate and TrustsHannah Daft - Business Development Manager

  2. Breast Cancer Campaign • Breast Cancer Awareness Month – key time for Cause Related Marketing • Big business for both parties • Corporate partnerships ASDA, Debenhams, Vanish, Pentel • Use the law to help protect your charity’s brand

  3. "If I was giving a charity advice, I would say do not compromise your work or your principles and don't underestimate the power and importance of your brand, which might actually be more important than a product brand, even though it is a market leader". (Business Community Partnerships: Fact or Fiction? Business Community Connections, 2001)

  4. How to set up a contract Risk • Brand fit/synergy • Does the company fit with the charity's ethical policy • Does the company have 3 years of annual accounts? • Exclusivities with current partners/conflict of interest?

  5. How to set up a contract Expectations • What does the company expect the charity to deliver? • What resource will the charity need to commit; PR support, celebrities, social media strategy and other resource? • Open and honest discussions from the outset • Setting a minimum value for the agreement

  6. How to set up a contract • Negotiation • RRP - setting donation level per product • We request a minimum donation of the retail price from products sold – this serves to prevent cynicism from consumers and the media • VAT - the donation is viewed by HMRC as a payment for a marketing service, and therefore VAT has to be charged on donations received. This VAT is passed onto HMRC

  7. Valuing your brand and not looking ‘greedy’ • Asking for a minimum • Assess ROI • How to say ‘no’, e.g. the charity has limited resource. Every partnership the charity enters into needs to maximise funds • Politely decline, offer alternatives, direct the enquirer to the charity’s donation site

  8. Other agreements Regional Contracts • Company only operates in one area • No guarantee/licensing fee • Commits them to the activity, approval process, legal wording and compliance, termination, payment terms, communications & marketing activities • Can either allow or disallow use of our name and logo dependent on activity

  9. When things don’t go to plan Breaking contracts • The charity’s responsibility to ensure all necessary research and risk analysis has been undertaken prior to entering into an agreement • However: • Not all products will be successful i.e. stockists pull out • Not all companies will pay agreed amounts on time • A company's activity may call them into disrepute • Cost of initiating legal proceedings for non-payment is costly and unviable to redeem • Some may pay once threatened with legal action some the Charity will have to write-off as bad debt

  10. Key three things • Don’t underestimate the strength of your brand, and the benefit this brings to the company • Complete your due diligence to protect your brand before entering into the partnership • Assess the ROI, will the partnership make effective use of the charity’s resource

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