Partnership Marketing, The New Age of Raising

Money!

Rebecca Gordon, CFRErebecca@rebeccagordon.orgwww.rebeccagordon.org573-338-3773

Twitter@rgordongor6

Welcome!

Who Is Here?

Though many people are not aware of it, the nonprofit industry is an enormous contributor to the American economy.  Nonprofits employ over 12.9 million individuals, roughly 10% of the country’s workforce and in 2009, charitable giving totaled over 303 billion dollars, 75% of those dollars come from individuals committed to building healthy individuals and strong communities.  

Service:

Contribution to the welfare of others. The act of serving or a helpful act.

Source – Merriam-Webster dictionary

Development:

The total process by which an organization increase public understanding of its mission and acquires financial support for its programs.

- Source: AFP Fundraising Dictionary

“ Feeling good is what nonprofits

sell.”

Seth Godin, Author

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Man is a goal seeking animal. His life only has meaning if he is reaching out and striving for his goals.

- Aristotle

GoalsGoals

A look At Giving in 2010

Total giving to charitable organizations was $290.89 billion in 2010 (about 2% of GDP).

•Giving increased by 3.8% from 2009 when giving was $280.3 billion.

•Revised Giving USA data shows that total giving has grown in current dollars in every year since 1954 except for 1987, 2008 and 2009.

Source: Giving USA 2009

So What Happened in 2009 and 2010?

A third of nonprofits are down

A third are up (stimulus funding)

Foundation and individual giving is was down

The Future of Giving

Fundraising is Changing!

The Chronicle of Philanthropy recently provided a picture of trends the nonprofit sector will face in 2010 and over the next 10 years.

The nonprofit landscape has permanently changed. To maneuver through the emerging forces predicted in 2010 and beyond, management experts say the nonprofit sector needs innovative leadership and RADICAL thinking that involves restructuring, merging and collaborating.

Building Relationships

80/20 Rule

Partnership Marketing

A vision for the future…..

Cause Marketing is a collaboration between corporate and nonprofit causes that ultimately engages company stakeholders from employees to suppliers, to retailers, eventually reaching consumers.

Cause Marketing

Cause Marketing for Nonprofits – Jocelyne Daw

What Do These Partnerships Have in Common?

The “B” Word

Top of Mind Awareness – Created and Reinforced by Brand

       First position is important because the business that is in the first position is 2X more profitable than the business in 2nd position and  4X more profitable than the business in 3rd position. 

Mark DahlAccountable Marketing Research Group

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The Importance of the Not-for-Profit Brand

“Many not for profit organizations resist thinking of themselves as “brands” or “potential brands”. For many branding is a dirty word that conjures up images of salesmanship without substance …. like it or not, they [NFPs} have existing brands and their identity or positioning with external audiences requires attention.”

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NFPs are well placed to become powerful brands• Driven by vision and commitment to core values• Seldom dreamt of by corporate communicators• Branding for NFP organizations not created by

well-funded marketing departments, but rests on the values that created your organization in the first place.

*Source: Institute for Media, Policy and Civil Society 200404/10/23 The Hospital for Sick Children

Not for Profits Brand Superstars in the Making

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Other successful brands

Central Themes

• Profits: Mutual Benefit to create value, communicate values

• Passion: Making a difference by combining assets and strengths.

• Purpose: Value exchange plus philanthropy.

• Partner: Strategic intersection of societal needs and corporate goals.

Mutual Benefit to Create Value and Communicate Values

Making a difference by combining assets

Value Exchange Plus Philanthropy

Partners who are interconnected and interdependent

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Partner: Strategic Mutually Beneficial Collaboration

• This is the intersection where societal needs and corporate goals meet and can come together for mutual benefit. Partners must be aligned with each others mission and goals

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Partners who are interconnected and interdependent

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Purpose: Value exchange plus philanthropy

• Cause Marketing initiatives are a combination of philanthropy, support for a cause and its purpose, and marketing, the tangible business benefits from a charity alignment and the assets they bring to the relationship.

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Value Exchange Plus Philanthropy

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Passion: Making a Difference by Combining Strengths and Assets

• Cause Marketing creates synergies by building on strengths and assets of each partner, making the sum of the two parts greater than each individual part.

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Making a Difference by Combining Assets

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Passion: Making a Difference by Combining Strengths and Assets

• Employees are increasingly becoming the reason why companies undertake cause-marketing programs. People want to work hard, get promoted, and be fairly compensated.

• They also want to work for a company that makes a difference and that is doing great things in their community.

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Profits: Mutual Benefit to Create Value, Communicate Values

• Finally, cause marketing is a new discipline in the corporate citizenship palette, one that includes use of a company’s brand, marketing, and people to create mutual benefit.

Mutual benefit to create value and communicate values

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Movement of Constituents

Customers

Trades, Suppliers

Shareholders

Employees

Cause Marketing IS Marketing, So a Few Vital Facts

• Focus is on the cause, not the charity• Perhaps national or statewide in scope,

but always local in impact and implementation.

• Compelling and positive presentation, even on difficult issues.

• Cause Marketing Initiatives: usually time limited, promotion driven.

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Hierarchy of Cause-Marketing Initiatives

Programs: Promotional Events, Programs, Social Marketing

Promotions: Issue Promotions

Products: Product Sales, Purchase Plus, Licensed Products

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Programs- Promotional Events, Programs, Social Marketing

• Fewer deeper relationships• Focused on impacting behavior• Greatest opportunity for messaging and

revenue

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Promotions: Issue Promotions

• Second most common form of cause marketing

• Focus on issue promotion – awareness• Higher level of messaging possible

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Products: Product Sales, Purchase, Licensed Products

• Most prevalent form of cause marketing.• Donation ties to product sales• Lower opportunity for messaging and

lower donation

Rebecca Gordon, CFRErebecca@rebeccagordon.orgwww.rebeccagordon.org573-338-3773

Questions????

Twitter@rgordongor6