License & Permit
Commercial Co-Venturer Bond
A bond some states require from a business that advertises that part of its sales will go to a charity (a charitable sales promotion).
- Required by
- State charity regulators (in Alabama, the Attorney General)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises the state, and anyone harmed, that the business will run the promotion lawfully and pay the promised share to the charity. If it does not, the state or a harmed person can claim on the bond. The business must repay the surety for any claim paid.
Who needs it
- Retailers and brands running cause-marketing promotions
- Businesses that promise a portion of sales to charity in bond states such as Alabama and Massachusetts
What the underwriter looks at
- Company financial statements
- Size of the promotion
- Owner or corporate credit
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
What does Alabama require?
Alabama uses one $10,000 bond form for professional fundraisers and commercial co-venturers, filed with the Attorney General under Code of Alabama 13A-9-71.
Do most states require a bond?
No. Only a few states require one. Many others require registration, a written contract with the charity, or a final accounting instead.