Nonprofits have long looked to advertising and marketing agencies to assist with their marketing and promotion efforts relating to fundraising, membership development, program promotion, product and service sales, and furthering the nonprofit’s general purpose and mission. This outsourcing model continues to help nonprofits reach new and existing donors, supporters, members, and other interested third parties, and has not changed with the emergence of online, social media, or mobile advertising. Agencies are not only assisting with development of digital creative materials, but also with advertisement placement, serving, and delivery. With respect to these online initiatives, nonprofits should acknowledge and address the legal risks and issues associated with these new online or mobile delivery arrangements.
The best defense available to nonprofits against these potential pitfalls has been and remains their written agreements with the agencies. Do not rely on a general or outdated contract form. Below is a list of suggested concepts that should be addressed and incorporated, as applicable, into nonprofits’ agreements with advertising and marketing agencies. Consideration should also be given to the constantly evolving legal framework governing the following...
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