Article 7: Fundraising and Development
June 01, 2012
Article 7 establishes that each Accredited Program is solely responsible for raising the funds needed to pay for its own program and administrative operations, and limits a Program’s fundraising rights to within its own jurisdiction. SOI is responsible for raising the funds needed for SOI's programs and administrative operations, and for supporting the growth of existing Accredited Programs as well as the worldwide expansion of Special Olympics. The Article highlights SOI’s exclusive authority to conduct or approve a broad range of fundraising activities, including those which are conducted on a worldwide, regional, or multi-jurisdictional basis, such as World and Regional Games.
Accredited Programs and Games Organizing Committees (GOCs) have rights to fundraise for their own purposes, provided they cooperate with SOI and comply with standards and policies. In addition to stipulating these obligations, the Article outlines sponsor recognition requirements.
Accredited Programs have fundraising reporting obligations to SOI, and these are set out in this Article along with Programs’ role in protecting Special Olympics trademarks and other intellectual property. It also outlines the consent required from SOI before separate entities for fundraising may be formed.
In accordance with the Article, SOI has exclusive authority to enter into worldwide agreements with corporate sponsors, although these rights may be extended by SOI to GOCs. SOI also has exclusive authority to make arrangements for or approve in advance any multi-jurisdictional fundraising activities.
Division of Fund-Raising Responsibilities within Special Olympics
Each Accredited Program is solely responsible for raising the funds needed to pay for its own program and administrative operations. SOI is responsible for raising the funds needed for SOI's programs and administrative operations, and for supporting the growth of existing Accredited Programs (through grants from SOI and other means) as well as the worldwide expansion of Special Olympics. SOI has the exclusive authority within Special Olympics to conduct, or to approve arrangements for, a broad range of fund-raising activities, including (but not necessarily limited to), those which are conducted on a worldwide, regional, or on a multi-Program basis, as provided in Section 7.02. Subject to SOI's exclusive authority as provided in these General Rules, Accredited Programs have the authority to engage in or authorize certain types of fund-raising activities conducted entirely within their respective geographic jurisdictions, as set forth in this Article 7.
SOI's Exclusive Authority
SOI has the exclusive right and authority to conduct (or to authorize third parties to conduct) any or all of the following activities for the purpose of raising funds for the benefit of SOI and/or Special Olympics:
Worldwide and World Games Sponsors
To enter into all multi-jurisdictional agreements and arrangements for support from corporate and other organizational sponsors (collectively, "Corporate Sponsorships") for the Special Olympics Movement and for all World and Regional Games; SOI may authorize a GOC to arrange for certain Corporate Sponsorships for World Games, on terms to be set forth in SOI's written contract with that GOC concerning those World Games.
Licensing Use of "Special Olympics" Name
To enter into all agreements which contemplate or require that a corporate sponsor or any other third party be granted authorization to make any use of the name "Special Olympics," either in marketing its own products or services (such as through a cause-related marketing promotion in which the public is informed that its purchase of a particular item will raise funds for Special Olympics), in sponsoring a particular event, or in acknowledging its own support for the Special Olympics Movement (such as where a sponsor publicizes that it is a supporter of "Special Olympics").
To arrange for (or to approve in advance all agreements made by Accredited Programs concerning) all fund-raising activities, including but not limited to, Corporate Sponsorships, cause-related marketing promotions and/or fund-raising or promotional events which will be conducted either: (i) on a worldwide basis; (ii) on a multi-national basis through activities conducted in the jurisdictions of two or more Programs; or (iii) via the Internet or worldwide web.
Regional Sponsors and Regional Games Sponsors
To approve all Corporate Sponsorships for Regional Games, Corporate Sponsorships of a particular Region, and/or Corporate Sponsorships of two or more Programs, whether or not those Corporate Sponsorship arrangements involve the sponsorship or support of Games; in the case of Regional Games, or Multi-Program Games, SOI may authorize a GOC or a hosting Program to arrange for certain Corporate Sponsorships for such Games, on terms to be set forth in SOI's written contract with that GOC or that hosting Accredited Program concerning those Games.
Multi-Jurisdictional and International Fund-Raising for the Torch Run
To arrange for or authorize in advance all multi-Program, Regional and international Corporate Sponsorships, and all other multi-Program, Regional, and international fund-raising activities or events which are designed to raise funds through or for the Torch Run; SOI may authorize the Torch Run Executive Council to plan or conduct specific fund-raising events for the Torch Run, either through its own efforts (with assistance from Accredited Programs) or in collaboration with law enforcement organizations whose members participate in the Torch Run.
To conduct (or to authorize third parties to conduct) all fund-raising activities which are dedicated to or directed at the development of an endowment fund for the benefit of the Special Olympics Movement.
To approach and seek grants or other forms of funding from foundations, wherever located, which offer grants or other types of financial support to non-profit organizations, except that Accredited Programs may also seek such funding in accordance with Section 7.03(e).
In order to promote uniform standards for all Digital Fund-Raising conducted in the name or for the benefit of Special Olympics, SOI shall provide written guidelines for all Accredited Programs and GOCs concerning the circumstances under which any Accredited Program may engage in Digital Fund-Raising. Digital Fundraising shall include any fund-raising activities which are to be undertaken for the benefit of Special Olympics, SOI, or any Accredited Program or GOC using the Internet, social media or any other form of international or interstate computer-based or telecommunications technology other than mere telephone solicitation, whether presently known or developed in the future, which involves the solicitation or receipt of contributions through computer-based marketing of goods or services, e- mail messages to or from donors or through any website, social media channel, text messages or other on-line telecommunications or digital media sources (collectively, "Digital Fund-Raising"). No Accredited Program shall engage in any Digital Fund-Raising unless those activities are conducted in accordance with these General Rules and SOI's written guidelines.
Fund-Raising with Amateur or Professional Sports Associations or Franchises
To conduct or authorize any fund-raising activities or promotional events which are sponsored by, or held with the support or participation of, amateur sports associations or amateur sports leagues, professional sports associations or professional sports leagues, such as the National Basketball Association, Major League Baseball, the National Hockey League, the International Hockey League, the Federation Internationale de Football Association, or the Professional Golf Association, whenever such league or association has teams or holds events in more than one Accredited Program's jurisdiction, regardless of whether the proposed fund-raising events or activities will be limited to a particular location or conducted on a multi-Program, regional or international basis. (As provided in Section 7.03(l)), an individual Accredited Program is not prohibited by this subsection from soliciting or accepting sponsorship support or other types of financial support from any amateur or professional sports team located within its jurisdiction or from associations or leagues which are based entirely in its jurisdiction.)
Other SOI Fund-Raising
In addition to SOI's exclusive authority under this Section 7.02, SOI also has the authority to conduct or authorize all other fund-raising activities not specifically enumerated in this Section 7.02, including but not limited to cause-related marketing promotion projects, Corporate Sponsorship arrangements, special events, and workplace and payroll-deduction giving, except that SOI's authority in these areas is non-exclusive to the extent that Accredited Programs have the express authority under Section 7.03 to conduct certain types of fund-raising within their respective geographic jurisdictions.
Authority of Accredited Programs
Each Accredited Program is authorized to engage in the types of fund-raising activities described in this Section 7.03, but only if and to the extent that: (i) all programs, events, activities, and promotions associated with such fund-raising activities are conducted entirely within the Accredited Program's jurisdiction; (ii) the activities are conducted only in the name of, or for the express support of, the Accredited Program (such as "Special Olympics Argentina"), and not under the name "Special Olympics;" and (iii) the activities described are conducted in accordance with the other requirements of these General Rules, including the Sponsorship Recognition Requirements in Section 7.06. Each Accredited Program may:
Arrange for Corporate Sponsorships with corporations or other organizations which have offices or operations in that Accredited Program's jurisdiction.
Cause-Related Marketing Promotion
Authorize promotions through which contributions are made to the Accredited Program in connection with the marketing and sale of products or services to the general public in that Accredited Program’s jurisdiction.
Authorize the conduct of fund-raising events in that Accredited Program’s jurisdiction in accordance with these General Rules and the other Uniform Standards, for the purpose of raising contributions to the Accredited Program from the public, such as through the sale of tickets for admission to the event, the sale of food or refreshments during the event, or any other methods permitted by applicable law and the Uniform Standards.
Direct Marketing Activities
Conduct, or authorize reputable and experienced third-party fund-raisers to conduct, mass direct mail solicitations and/or mass telephone solicitations of businesses or of the general public within that Accredited Program's jurisdiction (unless a Program has a written contract with SOI through which that Program has agreed to participate exclusively in a national, regional or international direct mail program conducted by SOI).
Support from Foundations
Approach and seek grants or other forms of funding from foundations headquartered in the Accredited Program's jurisdiction.
Workplace and Payroll Deduction Giving
Participate in any workplace giving or payroll deduction programs operated by private or public employers within the jurisdiction of the Accredited Program, if the Accredited Program is eligible to participate based on the geographic and other eligibility requirements established by the employer-operators of the particular program.
Special Fund-Raising Accounts
Establish one or more restricted bank accounts for depositing contributions which were dedicated by the donor to creating and preserving long-term financial stability for the Accredited Program, so long as all funds in such accounts are recorded and handled by the Accredited Program as Program assets, and are spent in accordance with the expressed wishes of the donor, the requirements of applicable law, and these General Rules.
Licensing Use of the Accredited Program's Name
Raise funds by licensing appropriate third parties, consistent with the requirements of these General Rules and other Uniform Standards, to use the name of the Accredited Program in marketing a third party's products or services, or in acknowledging a third party's support for the Accredited Program.
Proposals for SOI's Approval
Propose, for SOI's review and prior written approval, specific Regional or other multi-jurisdictional fund-raising projects involving more than one Accredited Program. Any such proposals shall be in writing, and shall be submitted to SOI at least three (3) months before the proposed starting date for the project.
Permit its respective accredited Sub-Programs to conduct fund-raising activities within that Sub-Program's jurisdiction on the same basis as the accrediting Accredited Program may conduct such activities on a Program-wide basis under this Article 7, subject to the accrediting Program's obligation to exercise proper supervision and control over such Sub-Program activities, as required by Sections 6.21 and 7.04(i).
Seek funding from governmental authorities within its jurisdiction, so long as acceptance of public funds does not jeopardize the Accredited Program's ability to meet its obligations under these General Rules or other Uniform Standards.
Support from Amateur or Professional Sports Teams
Solicit and accept financial or in-kind support from, or enter into sponsorships or other supportive affiliations with, any amateur or professional sports team located in that Accredited Program's jurisdiction or any amateur or sports league or association that is based entirely in and conducts all of its events in the Accredited Program's jurisdiction. (For example, Special Olympics Canada may accept such support from the Toronto Blue Jays professional baseball franchise, but not from Major League Baseball.)
Fund-Raising Responsibilities of Accredited Programs
Compliance with Laws and Voluntary Standards
Every Accredited Program and GOC shall comply with all laws and regulations which govern its fund-raising activities, including laws regulating charitable solicitation and cause-related marketing promotion arrangements with commercial co-venturers and all requirements concerning the filing or registration of contracts with appropriate governmental authorities. Every Accredited Program shall also ensure that its fund-raising activities comply with the Voluntary Standards defined in Section 5.11, where such Voluntary Standards govern non-profit organizations in that Program's jurisdiction.
Compliance with SOI's Contract Policies
All fund-raising agreements between Accredited Programs or GOC's and any third parties shall be in writing, and must comply with the contracting standards set forth in Section 7.07.
Cooperation with SOI's Fund-Raising Activities
Each Accredited Program and GOC shall use its best efforts to cooperate with SOI in connection with all fund-raising events and activities which SOI conducts pursuant to SOI's authority in Section 7.02, even if those activities occur, either entirely or in part, within an Accredited Program's geographic territory. For example, Accredited Programs shall cooperate with, and use their best efforts to assist SOI in, cause-related marketing promotions or special events authorized by SOI which are being conducted in their jurisdictions. SOI will keep all Accredited Programs apprised of all SOI-authorized fund-raising activities being conducted in their respective jurisdictions in order to facilitate compliance by Accredited Programs with the requirements of this Section 7.04(c).
Licensing Use of SO Marks
An Accredited Program may grant licenses or authority within its jurisdiction to its corporate sponsors, or to other third parties involved in fund-raising projects for the benefit of that Accredited Program, to use the Accredited Program's full program name, including geographic designation, such as "Special Olympics South Africa," or "Special Olympics Maine," either standing alone or contiguous with the SO Logo in the manner required by the Graphics Standards Guide. All such licenses shall comply with all requirements of these General Rules and the other Uniform Standards. No Accredited Program may grant any license or authority to any third party to use the name "Special Olympics," SOI's name, the SO Logo when not used with the name of the Accredited Program, or any other SO Mark.
Compliance with Uniform Standards
All fund-raising activities engaged in or authorized by an Accredited Program or GOC shall comply with all other requirements of these General Rules and the other Uniform Standards, including, without limitation, the policies set forth in Sections 5.08 and 5.09 concerning, respectively, the display of commercial messages on athletes' uniforms and competition numbers during competition, and prohibited associations with alcoholic beverages and tobacco products. No Accredited Program shall engage in or permit any fund-raising activities in its jurisdiction, even if that activity would otherwise be within the scope of the Accredited Program's authority under this Article 7, if that activity would be otherwise prohibited by any other provision of the Uniform Standards.
Names of Program and Fund-Raising Events; Identification of Sponsors
(1) Identification of Sponsors. Corporate sponsors or other organizations which support Accredited Programs shall be recognized by Accredited Programs only as "sponsors," "providers," or "supporters" of the Accredited Program, or other similar terminology. Accredited Programs shall not permit such organizations to include the name "Special Olympics," the name of the Accredited Program, or any other SO Mark in their own names or in the names of their products or services.
(2) Names of Program Events. Accredited Programs shall not permit any corporate sponsor or other organizational supporter of the Accredited Program to add its organizational or product names to the name of any Special Olympics Games, Tournament, demonstrations or any other training or competition event.
(3) Names of Fund-Raising Events. Corporate sponsors or other organizational supporters of an Accredited Program which conduct their own promotional or fund-raising events for the benefit of the Accredited Program may identify their own events using their organizational or product names, and indicate that the events are "for the benefit of" the Accredited Program, but shall be required to use the name of the Accredited Program only in accordance with the Uniform Standards, and with any more specific requirements which may be imposed by the affected Accredited Program. SOI shall have an ongoing right to approve the ways in which any SO Mark is used by such organizations, or by Accredited Programs, in announcing and publicizing their support of Special Olympics.
Compliance with Sponsorship Requirements
All Accredited Programs shall comply with the sponsorship designations in Section 7.05.
Contributions from Parents
Accredited Programs may solicit or accept unsolicited contributions from persons who are the parents or guardians of Special Olympics athletes.
Fund-Raising Activities by Sub-Programs
All authorizations granted to a Sub-Program to conduct fund-raising activities within its jurisdiction shall be in writing, and shall comply with the other requirements of these General Rules and the other Uniform Standards. Each Accredited Program shall be required to exercise sufficient supervision and control over the fund-raising conducted directly by its Sub-Programs, in order to ensure that its Sub-Programs comply with the requirements of these General Rules. Every Accredited Program shall be responsible to SOI for the manner in which all fund-raising activities are conducted by its Sub-Programs.
Prohibition on Formation of Separate Entities
No Accredited Program may establish a corporation, partnership, foundation, trust, supporting organization, or any other entity without SOI's prior written consent.
Tax Exemption Considerations
Every Accredited Program shall conduct all fund-raising activities in a manner which complies with the requirements in its jurisdiction for maintaining its exemption from taxes. Where legally permissible and feasible, each Accredited Program shall structure its fund-raising activities so as to avoid or at least minimize the payment of sales, use, excise or similar taxes.
SOI's Designation of Exclusive and Non-Exclusive Sponsors
For purposes of this Article 7, the terms listed below have the following meanings:
(1) "Exclusive Sponsor" means a sponsor of SOI, a sponsor of a GOC, or a Multi-Jurisdictional Sponsor that SOI and/or a GOC has agreed, consistent with the requirements of this Section 7.05, to recognize exclusively within a particular category of goods or services as a supporter of SOI, a GOC, any Regional Games or World Games, or a worldwide, or Regional, or Multi-Jurisdictional Sponsor of Accredited Programs.
(2) "Product Category" means the particular category or categories of goods and/or services for which an Exclusive Sponsor designated by SOI or a GOC has been granted exclusive recognition.
(3) "Non-Exclusive Sponsor" means a sponsor of SOI, a sponsor of a GOC, or a worldwide, Regional, or Multi-Jurisdictional Sponsor to which SOI (or the relevant GOC) has not made any exclusivity commitment in that sponsor's product or service category.
(4) "Multi-Jurisdictional Sponsor" means a potential or actual sponsor of two or more Accredited Programs, and/or any potential or actual sponsor which offers or provides financial or in-kind support for the benefit of more than one Accredited Program, whether on a multi-State, multi-jurisdictional or Regional basis.
(5) "Multiple Industry Sponsor" means a sponsor which is involved in multiple and diverse lines of business, to the extent that it is not readily associated with or engaged in specific, identifiable, product or service categories.
SOI's Authority to Designate Exclusive Sponsors and Multi-Jurisdictional Sponsors; Obligations of Accredited Programs
SOI has the sole authority to select and contract with Exclusive Sponsors (or to authorize a GOC to select and contract with Exclusive Sponsors). SOI shall follow the procedures set forth in subsection (c) below in selecting and contracting with all Exclusive Sponsors. SOI also has the sole authority to select and contract with Multi-Jurisdictional Sponsors, and to designate those Multi-Jurisdictional Sponsors as either Exclusive Sponsors (subject to the procedural requirements of Section 7.05(c)), or as Non-Exclusive Sponsors. Once SOI has designated an Exclusive Sponsor, Accredited Programs shall respect SOI's exclusivity commitments to that Exclusive Sponsor and otherwise recognize that Exclusive Sponsor's support of Special Olympics, as provided in Section 7.06(a). Accredited Programs shall also recognize the support provided by Non-Exclusive Sponsors designated by SOI, as provided in Section 7.06(c).
Procedures for Designating Exclusive Sponsors
SOI shall comply with the following procedures when selecting and contracting with Exclusive Sponsors:
(1) Notice to Accredited Programs. SOI shall identify all Exclusive Sponsors by written notice to all Accredited Programs. SOI shall also provide Accredited Programs with written notice of all Exclusive Sponsors designated by any GOC in accordance with this Section 7.05. Exclusive Sponsors may be sponsors of SOI, sponsors of a GOC, sponsors of World Games or Regional Games, Multi-Jurisdictional Sponsors, or Multiple Industry Sponsors. When designating Exclusive Sponsors, SOI (or, if applicable, a GOC) shall notify Accredited Programs of the Product Category for which that Exclusive Sponsor has been granted exclusive recognition (unless the sponsor in question is a Multiple Industry Sponsor, and therefore has no designated Product Category).
(2) Standards for Selecting Exclusive Sponsors. SOI has the sole discretion to determine the identity, number and Product Categories for all Exclusive Sponsors and the geographic scope of the exclusivity to be accorded to each Exclusive Sponsor. However, before granting worldwide exclusivity to any Exclusive Sponsor, SOI will solicit the views of Accredited Programs and consult with the IAC and the Regional Leadership Councils, in order to obtain and consider the views of Accredited Programs concerning proposed exclusivity arrangements with specific sponsors. SOI will also collaborate actively with the IAC and the Regional Leadership Councils to identify sponsorship arrangements with the greatest potential for benefiting the Special Olympics Movement at as many levels as is possible. In general, and subject to SOI's final authority to determine whether and on what terms to designate Exclusive Sponsors, SOI will consider, before designating and granting worldwide exclusivity to any Exclusive Sponsor, the extent to which that sponsor is prepared to provide support for Accredited Programs, whether Regionally or worldwide, in addition to the support it offers to provide for SOI, a GOC, or for World or Regional Games, and the extent to which an exclusivity arrangement with that sponsor would unduly restrict Accredited Programs, by virtue of the requirements of Section 7.06(a), from making sponsorship arrangements with competitors in the affected Product Category which would provide significant financial or in-kind support for that Accredited Program.
Sponsor Recognition Requirements
Accredited Programs shall recognize the support of Exclusive Sponsors (and honor their exclusivity arrangements with SOI or a GOC), and recognize the support of Non-Exclusive Sponsors as provided in this Section 7.06 (collectively, the "Sponsor Recognition Requirements"):
Recognition of Exclusive Sponsors
(1) Accredited Programs shall recognize all Exclusive Sponsors designated by SOI or a GOC, by: (i) providing such Exclusive Sponsors with the public recognition required by Section 7.06(b); and (ii) unless otherwise authorized in advance and in writing by SOI, by not entering into with any third party any sponsorship, cause-related marketing promotion, or other type of fund-raising or promotional agreement which contemplates or requires any public acknowledgment of support for or affiliation with the Accredited Program by that third party (or any other third party) that is a competitor of an Exclusive Sponsor in its Product Category.
Types of Recognition to be accorded to Exclusive Sponsors
All Accredited Programs shall recognize, and assist SOI in publicizing, the support provided to Special Olympics by Exclusive Sponsors, by providing the following types of public recognition to Exclusive Sponsors:
(1) Designations. Accredited Programs shall publicly refer to Exclusive Sponsors by using the sponsorship designations of "Worldwide Sponsor," "Worldwide Partner," "Regional Sponsor," or any other designations which SOI identifies in writing for its Accredited Programs as the approved method for identifying and recognizing a particular Exclusive Sponsor.
(2) Banner Displays. Accredited Programs shall also publicly recognize Exclusive Sponsors through the display of banners, which shall be provided by SOI at SOI's expense or at the expense of the relevant Exclusive Sponsor. Such banners shall be displayed, at a minimum, at the sites of all Accredited Program Games and events. The preceding sentence requires Accredited Programs to display (or cause others to display) the required sponsor-recognition banners at as many Games and events sites as is practicable, but at a minimum, at the venues for the closing ceremonies of the relevant Games and at the competition venue where the greatest number of athletes are expected to compete. To the greatest extent practicable, Accredited Programs shall also require their respective Sub-Programs to display such banners at the venues of Sub-Program Games and events.
(3) Other Recognition. In addition to the banners described in this Section 7.06 (b), Accredited Programs shall also publicly recognize Exclusive Sponsors in their respective public relations materials, news releases, and other Program Materials, using design layouts and standardized wording to be provided and approved by SOI in advance for each Exclusive Sponsor. Accredited Programs shall also recognize such Exclusive Sponsors by inviting them to attend or participate in Accredited Program Games or other events, and by extending to their employees and officials the opportunity to participate as volunteers of the Accredited Program.
Recognition of Non-Exclusive Sponsors
Accredited Programs which do not have pre-existing conflicting arrangements with sponsors in the product or service categories of Non-Exclusive Sponsors shall offer such Non-Exclusive Sponsors (whether they be sponsors of SOI or of a GOC) a reasonable first option to provide sponsorship or cause-related marketing promotion support to the Accredited Program before the Accredited Program enters into a sponsorship or cause-related marketing promotion arrangement with a competitor of that Non-Exclusive Sponsor. Any such first option shall be extended to the Non-Exclusive sponsor by giving that Sponsor: (1) reasonable advance written notice of the existence of a sponsorship or cause-related marketing promotion opportunity for the support of the Accredited Program, with a copy of that notice to be provided to SOI (and, if applicable, the GOC) at least twenty-one (21) days before it is submitted to the Sponsor; and (2) a fair acceptable terms for providing that support. Accredited Programs must document their compliance with these requirements in all dealings with existing and potential sponsors and other organizational supporters. In addition, Accredited Programs which do not have pre-existing conflicting arrangements shall publicly recognize, in their own jurisdictions, the support being provided for Special Olympics by the Non-Exclusive Sponsor, to the same extent provided for in Section 7.06(b), whether or not those Accredited Programs enter into their own sponsorship arrangements with that Non-Exclusive Sponsor. The requirements of this Section 7.06(c) shall not apply to Accredited Programs which, at the time that SOI provides written notice of the identity of any Non-Exclusive Sponsor of SOI or a GOC, already have pre-existing and conflicting arrangements with their own sponsors in the product or service category which is common to the Non-Exclusive Sponsor, except to the extent otherwise provided below in Section 7.06(d) concerning "Multiple Industry Sponsors".
Recognition for Multiple Industry Sponsors
SOI and/or a GOC shall be entitled to enter into sponsorship arrangements with Multiple Industry Sponsors, on either an exclusive or a non-exclusive basis (subject to the required procedures in Section 7.05 for designating Exclusive Sponsors). If SOI notifies the Accredited Programs that SOI or a GOC has designated a Multiple Industry Sponsor, Accredited Programs shall recognize that Multiple Industry Sponsor within their own jurisdictions as supporters of SOI and of Special Olympics, whether or not that Accredited Program has its own sponsorship affiliation with other Multiple Industry Sponsors involved in the same product or service categories as the Multiple Industry Sponsor designated by SOI or a GOC. SOI will encourage its Multiple Industry Sponsors to provide support for Accredited Programs in the jurisdictions where such Multiple Industry Sponsors have offices or operations.
SOI's Contract Policies
All fund-raising agreements entered into by Accredited Programs shall be in writing, and must include the following minimum contract protections, unless otherwise approved in advance and in writing by SOI:
Approval of Third Party Use of SO Marks
The Accredited Program shall have, and must actually exercise in each instance, a right of advance written approval of all materials (such as promotional literature or merchandise) to be developed or distributed by any third party which will bear the name of the Accredited Program, the SO Logo (which may be used only in conjunction with the name of the Accredited Program), or any other SO Mark which SOI has licensed that Accredited Program to use. Through such approval process, the Accredited Program shall ensure that such third party fully complies with all SOI ownership rights to the SO Marks, with the Graphics Standards Guide, and with other applicable provisions of the Uniform Standards.
Ownership of Accredited Program Assets
The Accredited Program shall retain, and be recognized explicitly by all third parties as retaining, exclusive ownership of all Accredited Program assets which will be used or developed by a third party through the use or exploitation of any SO Marks, such as ownership of all donor lists and records containing the Accredited Program's list of active or lapsed donors.
Inspection of Financial Records
The Accredited Program shall have the right to inspect and audit, with reasonable notice, all books and records and other financial documentation of a third party which relate to the third party's performance under the agreement, and a right to receive properly documented financial reports from the third party concerning the revenues raised from the project for the Accredited Program.
Fees and Expenses
The agreement must clearly identify whether the Accredited Program will be responsible for paying any fees or expenses in connection with the project, including those incurred by subcontractors or other parties who will perform services for the third party which is contracting directly with the Accredited Program, and must explicitly protect SOI from any liability or responsibility to any third party for payment of such fees or expenses.
The agreement must require that the third party contracting with the Accredited Program obtain adequate insurance coverage for its activities in connection with the project, in amounts acceptable to the Accredited Program, including, but not limited to, coverage protecting the Accredited Program's interests in relation to the third party's access to donor lists, cash contributions to the Accredited Program, or other tangible or intangible assets of the Accredited Program.
Compliance with Laws and Voluntary Standards
The agreement must explicitly require the third party to comply with all laws and regulations which apply to its activities under the agreement with the Accredited Program, including, if applicable, the laws of the Accredited Program's jurisdiction governing charitable solicitations and cause-related marketing contracts, as well as all Voluntary Standards (as defined in Section 5.11), if any, which may apply in that Accredited Program's jurisdiction.
The agreement must require that the Accredited Program be indemnified by the third party from damages, costs, expenses and attorneys' fees arising out of any claims that might be made against the Accredited Program by any party stemming from the third party's failure to perform its obligations under the contract, or its unauthorized use of any SO Mark.
Length and Termination of Contract
The agreement must specify the length or term of the agreement with the third party, the timing and circumstances under which the Accredited Program may terminate the agreement by providing written notice to the third party and must permit the Accredited Program to terminate the arrangement promptly if the third party defaults in performing its obligations under the agreement.
Fund-Raising Obligations of GOC's
The authority and responsibilities of a GOC concerning fund-raising activities shall be specified in SOI's written agreement with each GOC. Unless otherwise provided in a written agreement, each GOC shall be obligated to comply with all of the Sponsorship Recognition Requirements in Section 7.06 in its efforts to raise funds for the support of any Regional Games, World Games or any other Games sanctioned by SOI.
Reporting Obligations of Accredited Programs
Accredited Programs shall retain all fund-raising contracts for a period of at least three (3) years after their expiration or termination, or for any longer period required by the laws of their respective jurisdictions. If requested in writing by SOI, an Accredited Program shall provide SOI with copies of sponsorship, cause-related marketing promotion, direct marketing, or other types of fund-raising contracts entered into by that Accredited Program unless prohibited by law or where such information would be in violation of the confidentiality provisions of an agreement between the Program and the contracting party. SOI shall have the right to inspect at any time any fund-raising contract entered into by an Accredited Program for the purpose of ensuring the Accredited Program's compliance with this Article 7 and the other Uniform Standards.
Fund-Raising Information to be distributed by SOI
SOI shall keep all Accredited Programs and GOC's regularly informed of SOI's corporate sponsorships, cause-related marketing promotion projects and other on-going efforts, in order to enable Accredited Programs and GOC's to comply with their sponsorship-recognition obligations under Section 7.06, and provide the cooperation required from Accredited Programs under Section 7.04(c).
Cooperation in Protecting SO Marks and Other Intellectual Property Owned by SOI
In planning and executing all fund-raising activities permitted by this Article 7, all Accredited Programs and GOC's must use their respective best efforts to identify and prevent the unauthorized use by third parties of any SO Marks, ensure that the SO Marks are used in connection with only those fund-raising activities which are consistent with the public image and reputation of Special Olympics, and protect the value and ownership of all copyrights, trademarks and service marks and other forms of intellectual property owned by SOI.
Avoiding Use of Marks Owned by Third Parties
Accredited Programs shall be responsible for ensuring that they do not use or misappropriate, or knowingly permit any sponsor or other third party to use or misappropriate, any name, logo, trademark, service mark, design or other form of intellectual property (individually and collectively, "mark(s)") which is/are owned by another party, unless the Accredited Program has obtained the express prior written consent of the owner of each such mark. Without limiting the intended generality of the immediately preceding sentence, no Accredited Program shall use or permit any third party to use any mark which has been registered by the USOC with the United States Patent and Trademark Office. SOI will assist Accredited Programs in identifying the marks which have been registered by the USOC.