State the amount or percentage, what it is taken from, the dates and the named charity, get the charity's permission before using its name, and publish what was given when the promotion ends.

A promise with no numbers in it

A portion of every sale goes to charity. Proceeds support the food bank. We give back. Lines like these appear on shop windows, receipts, websites and Facebook posts every week.

They are well meant, and customers do choose businesses partly because of them. That is exactly why the wording matters.

A customer who pays a little more, or picks you over a competitor, because some of the money goes to a cause is entitled to know roughly how much and where it goes.

This is general information on how such promotions should be worded, not legal advice.

What customers are left guessing

The second makes the biggest difference. Ten percent of the sale price and ten percent of the profit can be very different sums, and proceeds can be read as either.

Why vague can mislead

Under the Competition Act, an advertising claim can be a problem if it is untrue, or misleading about something that would affect a buyer's decision, and the general impression it leaves counts as well as its literal words.

A portion of every sale is literally true if the portion is one cent. The impression it leaves with most readers is something more generous.

Leaving out the limits can mislead too: a promotion that ended in March but is still on the website, or a donation capped at a modest total that was reached in the first week while the signs stayed up.

The safe course is a claim specific enough that a customer could check it.

The charity's name is not yours to use

Naming a charity in a promotion borrows its reputation. Most charities care how that happens, and many have a policy, a form or a short agreement for businesses that want to raise money in their name.

Their names and logos are often registered trademarks. Some will not allow their logo beside a product at all; others want to approve the wording first.

If the promotion implies a registered charity, check the public list of registered charities kept by the Canada Revenue Agency.

And ask before the first sign is printed. A charity that learns about a promotion from a customer is in an awkward position, and so is the business.

Wording that answers the questions

A clear statement fits on one line: two dollars from every large pizza sold in June goes to the regional food bank.

Or: ten percent of the price of every class booked between July 1 and August 31 goes to the town's animal shelter, up to $2,000 in total.

Each version gives the amount, what it comes from, the period, the recipient and any limit. The customer is left with nothing to guess.

If the arrangement is ongoing, say so, and say how often the money is paid.

A worked example

A water delivery service brings large bottles of spring water to offices and homes across a valley, rents out the coolers they sit on and collects the empties each week.

For two years its website, delivery invoices and van doors said that a portion of every bottle supported clean water projects.

In practice the owner wrote one cheque each December to a charity that drills wells overseas, for whatever amount felt right at the end of the year. The charity had never been told about the line on the vans.

Then an office manager asked how much of her company's monthly order went to the cause. Nobody could answer.

The owner called the charity, which was glad of the support and asked to see the wording first.

The line now names the charity and promises twenty-five cents from every bottle delivered, paid each quarter, with the year's total posted on the website.

The vans were the slowest part. The old wording stays on them, under a sticker, until the next repaint.

Every place the claim appears

A promotion rarely lives in one place. It is on the website banner, the product pages, receipts, social posts, the sign by the till and sometimes the packaging.

All of them have to say the same thing. A precise website and a vague window sign still leave the vague impression with everyone who only saw the window.

Keep a list of where the wording went, so that when the promotion ends it comes down everywhere at once, including the post pinned to the top of the Facebook page.

Paying it, and saying so

Record what each sale contributes as it happens, rather than estimating at the end. Most till systems and online shops can report sales of one item over a date range.

Pay the charity on the schedule you promised, and keep its receipt or letter of acknowledgement.

Then tell customers the total. It closes the promotion honestly, and it is the best evidence that the next one will be honest too.

The counter-case

A donation that is not tied to sales needs far less explanation. We sponsor the youth choir, or we gave to the hospital auxiliary last year, is a plain statement of fact.

Informal giving, such as a jar on the counter for a local cause, carries less risk as long as the jar says where the money goes.

Draws, raffles and contests have rules of their own and deserve professional advice before launch. For anything tied to sales, though, the advice stands: state the amount, the base, the dates and the charity, with its permission.

Before the next promotion

  1. Choose the amount and what it comes from.
  2. Set the start and end dates.
  3. Ask the charity before using its name.
  4. Write one line that answers every question.
  5. Use the same line everywhere it appears.
  6. Record each contribution as sales happen.
  7. Publish the total when it ends.

Step three is the one businesses most often skip, and the hardest to put right later, because by then the charity's name is already on the signs.

Telling customers plainly what is going on is also the point of free products sent to local bloggers.

Frequently asked questions

What makes a charity claim too vague?

Leaving customers to guess how much is given, from what, for how long and to whom. A portion of proceeds can mean almost nothing and still be literally true.

Can a vague charity claim be misleading?

It can. The Competition Act considers the general impression an advertisement gives, not only its literal words, so a claim implying more generosity than the reality can mislead.

Do I need the charity's permission?

Ask before using its name. Many charities have a policy or agreement for businesses raising money for them, their names and logos are often trademarks, and some want to approve wording.

What should the wording include?

The amount or percentage, whether it comes from the price or the profit, the start and end dates, the charity's name and any limit on the total.

What happens when the promotion ends?

Take the wording down everywhere at once, pay the charity on the promised schedule, keep its acknowledgement, and tell customers the total that was given.

Does a sponsorship need the same detail?

Much less. A donation not tied to sales can be stated as a plain fact. The detail matters when customers are told their purchase triggers the gift.

West Coast Media Solutions Inc. provides web design, web development, hosting, digital marketing, and business consulting to organisations across Canada, drawing on more than twenty-five years in the field.

Planning a promotion for a good cause?

Send us the wording before it goes out. We will make sure the website, posts and signs all say the same thing.

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