It is possible for your project to receive a donation of a percentage of proceeds from a for-profit business. Sometimes this is referred to as a commercial co-venture. Please keep in mind that each project must do the following in order to receive this type of donation:
- Make sure to have Community Partners sign a contract with the business including details on the percentage that will be donated and from what type of proceeds (for example: Your project receives 25 percent of proceeds from one full day of sales in a store.) The contract should specify when the charitable donation will be made and how the funds will be accounted for.
- The for-profit business making the donation to your project must register with the California Attorney General's Office by completing Form CT-5CF. They can access the form here. The for-profit business must provide a certified check or cashier's check in the amount of $350 with the form.
- The project needs to file a Notice for Intent to Solicit with the City of Los Angeles.
- The for-profit business should keep accurate accounting records for this activity for reporting and audit purposes.
Below are links for more information on this matter.