Cause Marketing Report Points Toward Effectiveness of Brand & Nonprofit Fundraising

Nonprofit fundraising has evolved significantly over the past two decades. With the many choices and opportunities to engage donors and supporters, it has become a juggling act for charities to put together and manage a cohesive and effective marketing plan. Nonprofits have to find the perfect balance of the traditional like DM mail pieces and telephone fundraising or lottery programs, grassroots efforts like fact-to-face and word of mouth and the rapidly emerging platforms like social media and digital marketing for their brand. Another often overlooked but very effective option is corporate/brand affiliated cause marketing.

According to dowelldogood.net cause marketing is defined as “a potentially profit-making initiative by a for-profit company or brand to raise awareness, money, and/or consumer engagement in a social or environmental issue.” Recently I was reading The Checkout Issue 3.11 Cause Report by The Interger Group and M/A/R/C Research, which gave a glimpse of cause marketing initiatives, the consumer it engages, and the benefits for both the nonprofit and the brand. These benefits include:

For Nonprofits:

• Higher Visibility. Partnering with a well known brand can increase a nonprofits visibility. Combining a cause that can be strategically tied in with a popular brand will increase the charities exposure and will build on its brand presence and image.
• Increased Reach. Joining forces with a brand could allow a nonprofit to tap into the brand’s customer base which may represent a new market segment for them. Reaching and engaging a new supporter or volunteer segment that may have otherwise not had interest in the cause is a huge benefit to nonprofits.
• Added Resources. The financial and human resources a brand or corporation can offer to a nonprofit can be of great benefit. Considering these uncertain economic times, nonprofits can really benefit by the support a brand or corporation can offer. Any corporate support, including marketing dollars, matched donations and employee participation and volunteer time, ultimately strengthens the nonprofit.

For Brands or Corporations:

• Improved Brand Image/Customer Relations. Brands are well served in joining forces with a cause or nonprofit that share a similar mission or vision, as it can strengthen customer relationships by demonstrating social consciousness and responsibility.
• Increased Revenues. The Cause Report show that 43% of women, who traditionally have the buying power and is a segment of the market most sought after, are more likely to purchase a brand that makes a donation with every purchase. Brands benefit with increased sales and having a competitive advantage over the competition.
• Stronger Employee Relations. Corporations that support a cause will usually have the support of their employee population and therefore have higher employee retention and stronger working relationships, as together they are working towards supporting a mutual and good cause. Employee engagement is proving to have a positive residual impact.

According to Cone’s 2010 Cause Evolution Study, “83% of Americans wish more of the products; services and retailers they use would support causes. In addition, 80% of consumers are willing to switch from one brand to another brand that is about the same in price and quality, if the other brand is associated with a good cause”. There is definitely a market hungry to buy from brands that are associated with a cause or nonprofit. Giving consumers the opportunity to shop their values and satisfy their purchasing needs at the same time, is a winning formula for everyone involved. I will feature some specific factors for a nonprofit to consider when embarking on a cause marketing partnership with a brand that are unique to each organization in a follow-up post.

Does your business or nonprofit participate in cause marketing?

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Miratel Solutions is a Toronto call centre, eBusiness, and letter shop mail house specializing in professional fundraising services including telephone fundraising, online fundraising, lottery services, donation caging, donation processing and other donor management services. We are committed to our CSR business values in all contact centre services and mail house operations and advancing the missions of the nonprofits we proudly serve.