A charity's fallout from a donor's problems will likely be most serious in a situation where a co-branding relationship exists, as in the case of the Aquarium of the Pacific's BP Sea Otter Habitat. The examples of tainted relationships with BP serve as important lessons in co-branding relationships. In recent years, many nonprofits have turned to co-branding with for-profits as a means of generating additional revenue. When the for-profit brand turns sour, however, such associations can do more harm than good. Prior to entering into any such relationship, organizations should require a co-branding agreement that ensures the ability to terminate the relationship upon any event that could tarnish the nonprofit's reputation and goodwill.
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