From time to time, CharitySelect may offer one, or more, donation incentive programs under which CharitySelect and not the Licensee Agencies will make certain donations. The first such incentive program is the Minimum Donation Program (“MDP”) and the second is the Charity Communications Incentive Program (“CCIP”). Both the MDP and the CCIP are described in detail immediately below.
Minimum Donation Program
Automobile and/or Homeowners Insurance Donation Offer
For consumers that would like to purchase personal automobile insurance or homeowners insurance, or both, CharitySelect shall guaranty a minimum donation of at least fifteen dollars ($15) to the charity of choice of each Independent Consumer that:
1. Has not previously requested or received a quote for automobile insurance or homeowners insurance, or both, under the MDP;
2. Provides CharitySelect with the required information and identifies a “Qualified Charity” of their choice (defined as a 501(c)(3) not-for-profit organization under the rules and regulations of the Internal Revenue Service);
3. Completes the application process, in good faith, for the applicable coverage(s) with a Licensee Agency of CharitySelect under the CharitySelect Program prior to the next renewal date(s) for such coverage(s);
4. Receives one or more quotes for such coverage(s) from the Licensee Agency under the CharitySelect Program.
5. Communicates their decision to not accept such quotes and does not purchase any such coverage(s) from the Licensee Agency under the CharitySelect Program, such rejection notice delivered in writing by email from the consumer to the applicable Licensee Agency of CharitySelect prior to 5 days after the renewal date of the coverage(s).
The term “Independent Customer” includes family members living in the same legal residence.
Donations under the MDP shall be made by CharitySelect annually in arrears beginning with the 2013 calendar year. CharitySelect expects to maintain its commitment to the MDP through at least December 31, 2014, unless extended or modified in the future.
Charity Communications Incentive Program
The CCIP is available to any Qualified Charity that communicates about CharitySelect and the CharitySelect Program with their members, donors, employees, Directors, the general public and/or the press (“Supporters”). CharitySelect has, and will continue to, develop emails, brochures, envelope stuffers and website badges, and other materials, and shall make all such communications materials available to all Qualified Charities to be utilized for such purposes. In addition, a Qualified Charity may develop and utilize other communications techniques to introduce or describe the CharitySelect Program as the Qualified Charity determines to be appropriate.
On an annual basis under the CCIP, CharitySelect shall make an additional donation to each Qualified Charity provided CharitySelect can verify to its satisfaction that the Qualified Charity has communicated with its Supporters in a meaningful way during the applicable calendar year. CharitySelect shall provide Qualified Charities with a schedule of communication activities and the applicable point totals to be credited by CharitySelect for each such activity by a Qualified Charity. If a Qualified Charity’s point total is greater than or equal to a target number for any calendar year, the Qualified Charity shall qualify for these additional donations from CharitySelect. A communications effort by a Qualified Charity shall only be counted for such purpose if: (i) the Qualified Charity reports to CharitySelect on the form and timing of such communications effort; and (ii) CharitySelect confirms such communication effort.
The amount of additional donations made by CharitySelect to any Qualified Charity that meets the minimum requirements of the CCIP for any calendar year shall be equal to 25% of the gross revenue received by CharitySelect for that calendar year from Licensee Agencies for customers that selected the Qualified Charity as their charity-of-choice. For the average personal lines insurance customer, CharitySelect estimates that Qualified Charities that continuously meet the requirements of the CCIP will receive a 50% increase in Donations on top of the level available under the Donation Standards directly from the Licensee Agencies. The CCIP applies to both Personal Lines property-casualty insurance and Commercial Lines property-casualty insurance.
CHARITYSELECT MUST MAINTAIN THE DEPENDABILITY AND TRUSTWORTHINESS OF THE PROGRAM FOR THE BENEFIT OF ALL PARTICIPANTS. IN THE EVENT THAT CHARITYSELECT IDENTIFIES ANY PARTY (OR PROCESS) SEEKING TO MANIPULATE OR EXPLOIT THE DONATION SYSTEM TO THE UNFAIR ADVANTAGE, OR DISADVANTAGE, OF ANY QUALIFIED CHARITY, LICENSEE AGENCY OR ANY OTHER PARTY; CHARITYSELECT SHALL TAKE WHATEVER ACTION IT DEEMS TO BE APPROPRIATE AND NECESSARY, AS DETERMINED AT ITS SOLE DISCRETION, TO MAINTAIN THE RELIABILITY AND INTEGRITY OF THE CHARITYSELECT PROGRAM.