Cause-related marketing has become a controversial issue among potential donors and funders. What are the potential pitfalls associated with cause-related marketing?

Cause-related marketing has become a controversial issue among potential donors and funders. What are the potential pitfalls associated with cause-related marketing?
Cause-related marketing is a nonprofit organization networking with a well known company and the well known company promoting and supporting the nonprofit organization. While this seems to be an excellent idea, because this sheds light on the cause of the nonprofit organization, the potential problems this can cause is the one of the organizations could make bad decisions, which will make the other one look bad. Companies have to protect their reputation and we can see many companies affected, due to bad business practices from the other company.

Another issue is according to an article in Wealth Group, “Cause-related marketing triggers issues under Federal and state laws governing false or misleading advertising, state commercial co-venture laws, and Better Business Bureau Standards” (Mathis, 2015). Large organizations may advertise they may donate to a cause, without disclosing the specifics of their donation, misleading the population and causing for the company to be investigated.