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Contracts - Practical tips from a charity perspective Mayaz Rahman – Head of Corporate and Trusts Hannah Daft - Business Development Manager.

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Presentation on theme: "Contracts - Practical tips from a charity perspective Mayaz Rahman – Head of Corporate and Trusts Hannah Daft - Business Development Manager."— Presentation transcript:

1 Contracts - Practical tips from a charity perspective Mayaz Rahman – Head of Corporate and Trusts Hannah Daft - Business Development Manager

2 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 Breast Cancer Campaign

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 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 How to set up a contract

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8 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 Valuing your brand and not looking ‘greedy’

9 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

10 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

11 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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