It’s a suitable strategy to include the contributions you make to nonprofit efforts in your overall marketing plan. By affiliating yourself with a charity you are gaining a powerful network that is likely to appeal to the constituents of nonprofit organizations. People show preference for businesses that give back to their communities. The pertinent question, perhaps, is to ask how you use nonprofits to market your company.
It seems more than appropriate that when you give a donation to a charity or donate time and materials to a community project that you send out a press release or include a contribution accolade in your company newsletter. It’s not only nice to let customers know of your generosity, but you’re also setting a good example for other businesses to do the same.
Nonprofits would like to believe that you’re giving to them for the sole purpose of helping their cause and not to just gain attention for your good deeds. But even if you are giving to a charity for completely altruistic purposes, there’s no reason why you should not benefit from the resulting positive exposure.
However, is a fine line crossed when you blatantly set out to receive a return on your charitable investment? Companies will offer a percentage of sales to a nonprofit that helps them market the offer to their supporters. If your forprofit signs up with our company, anyone who comes in and mentions your nonprofit will receive a discount which will be contributed to the charity. The nonprofit is asking the nonprofit to encourage their supporters to visit the business to boost the contribution.
The company is using the nonprofit to gain new customers, looking for meaningful exposure to a large number of people. Is that a bad thing, after all the nonprofit benefits from the marketing ploy? Charities are aware of the company’s motivation, but most believe that building name awareness, even if the contribution deems to be small, is beneficial. Some nonprofits, however, complain that it makes a lot more work for their limited staff and they wish the company would just be generous and write a check.
Studies have shown that consumers jump to false conclusions about commercial products that are promoted with a nonprofit’s name or logo. The American Association of Philanthropy says this about business/charities promotions:
Many people wrongly assume that whenever a charity’s name is used to market a product, the charity is endorsing the product and the product is superior to those of competitors. Consumers may not be aware that charities often enter into exclusive licensing partnerships with companies. Such a charity’s logo may then appear on a product not because the charity has undertaken research to demonstrate that the product is superior, but because the company has paid a licensing fee to the charity for the right to use the charity’s name in its marketing.
AIP believes that it is hypocritical for charities that have policies not to endorse specific products to allow corporate marketers to give consumers the impression the charity is making such an endorsement through general licensing arrangements.
Still this type of cross promotion is common practice and has been going on for a long time in
It sounds like a tedious process but with the trending software one scan of an online coupon can disperse funds quickly to the various participants.
It’s possible that this trend could just be just that, a trend. It’s troubling though when a profit is purported to be made by helping nonprofits. And yet raising money via online marketing is proving to be very successful.
Case in point is Kickstarter, a funding platform for creative projects — everything from films, games and music to art, design and technology. Kickstarter is full of ambitious, innovative and imaginative projects that are brought to life through the direct support of others. Since its launch on April 28, 2009, over $500 million has been pledged by more than 3 million people, funding more than 35,000 creative projects. And it’s all done online.
While building business through charities may prove positive for the company and the nonprofit, a company’s primary motivation should be to help other people. Hundreds of opportunities exist for you to make a difference in our community. We urge you to participate!
