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Promoting services for non-profit

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi,

 

Wanted to clarify something with regards to the phrase "If you intend to promote products or services, 100% of the sales and/or proceeds must support your program.". It means that if our NGO has a product/service and wants to promote it with the help Google Ad Grants, then all the revenue from that service/product has to go back into the program, but can it be used to cover costs with staff? Also, how can one proove that all the revenue is going back into the program?

 

For example if the nonprofit has a course that helps kids learn English (in a non-English speaking country), can it promote the course if it asks only for half of the price of the course while the other half is used to pay the teachers?

 

Thanks in advance!

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Accepted by MosheTLV (Top Contributor)
September 2015

Re: Promoting services for non-profit

Top Contributor
# 2
Top Contributor
Hi Csilla I,
Yes, that is fine. Google would consider "covering costs" to be in support of that mission. The main intent of the policy is so that Grantees are not using the grant to promote third parties.

For example, an Amazon Store, a Zazzle Store or CafePress store run by the nonprofit would NOT be allowed to be promoted since those are really run as affiliate programs where the nonprofit only receives a commission of the sales made for the third-party.

Another example would be a coffee shop that is fully run by the nonprofit on their property. Promoting that nonprofit run coffee shop would be OK - 100% of the proceeds (after costs) goes to support the nonprofit.

Promoting a Starbucks that rents the location would NOT be OK.

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Marked as Best Answer.
Solution
Accepted by MosheTLV (Top Contributor)
September 2015

Re: Promoting services for non-profit

Top Contributor
# 2
Top Contributor
Hi Csilla I,
Yes, that is fine. Google would consider "covering costs" to be in support of that mission. The main intent of the policy is so that Grantees are not using the grant to promote third parties.

For example, an Amazon Store, a Zazzle Store or CafePress store run by the nonprofit would NOT be allowed to be promoted since those are really run as affiliate programs where the nonprofit only receives a commission of the sales made for the third-party.

Another example would be a coffee shop that is fully run by the nonprofit on their property. Promoting that nonprofit run coffee shop would be OK - 100% of the proceeds (after costs) goes to support the nonprofit.

Promoting a Starbucks that rents the location would NOT be OK.

Re: Promoting services for non-profit

Follower ✭ ✭ ✭
# 3
Follower ✭ ✭ ✭
Just to add to Robert's detailed response:

Non profits usually have expenses in the functional and the Natural categories associated with them.

Natural categories include salaries, payroll taxes, rent, professional fees and office supplies.

Functional categories include program, general and administrative and fundraising expenses.
Most organizations have more than one program and each of these should be tracked separately.

As long as your expenses fall in any of these categories, you should be ok.

Cheers,
Vineesh..