The past few years have been difficult for nonprofits. The economic downturn, beginning in 2008, and its ripple effects have taken a toll on nonprofit coffers. Contributions are down approximately 2% overall, and for some organizations the declines are even higher. Additionally traditional methods of fundraising have suffered. According to a DMA Nonprofit Federation Survey, 63% of nonprofits reported a significant decline in response rates to their direct mail solicitations. To help offset this, cause marketing has become a major global force which is poised to become even stronger in light of new media, technological and societal developments. Understanding these trends can help nonprofits of all sizes, and across all sectors, harness the power of cause marketing to further advance their missions.
Recently, nonprofits have also incorporated social networking into their overall fundraising campaigns, with tremendous results for cause marketing. Now, organizations can use their Facebook pages, Twitter and accounts, among others, to keep the buzz going regarding their organization and how others can help. Auction sites like eBay are making it easy for individuals or companies to sell a product on eBay and then donate the proceeds to their favorite charity through eBay Giving Works.
The public, too, is responding to social networking opportunities. An American Marketing Association (AMA) survey found that an estimated 50% of respondents indicated they would visit a social networking site during the past holiday season to learn about deals and download coupons. More importantly, many are seeking ways whereby they can make purchases that will make a difference. The same AMA survey found that younger generations (age 18-24) are more motivated to buy products or services connected to cause-related marketing. Respondents age 18-24 (46%) and women (40%) were most likely to buy a product or service if they knew that a portion of the proceeds would go directly to benefit a cause.
Mobile giving is also on the rise within the cause-marketing arena. There are new mobile shopping platforms, such as CitiShopper, and services, such as Foursquare, Gowalla and Facebook Places, which are enabling retailers to offer geographically targeted promotions with a cause-related component.
Ticket sales for a cause is one more area exploding within the cause marketing arena. Organizations such as tix4cause.com are giving for-profit organizations, such as professional ball clubs, theaters, concert promotes, etc., a way to donate tickets to a charity which is then able to sell the tickets, and keep 100% of the proceeds. Everyone is getting behind the ticket movement. This past August, the Philadelphia Eagles issued a news release titled, “Eagle Fans: Donate Tickets to Charity,” and the New York jets have a “charitable ticket turn-back program” in association with the United Way of New York City. There is also a “Tix for Kids” program whereby New York Jets season ticket holders can release unused game tickets and make them available for underprivileged children in New York. Even the PGA is driving the tickets for charity movement. Its Tickets Fore Charity is a PGA-run initiative designed to raise funds for local nonprofits in the communities where PGA Tour events are held.
The Cause Marketing Forum presents ‘Statistics Every Cause Marketer Should Know’ on its website. Included among them is that ‘two-thirds of brands now engage in cause marketing, and 97% of marketing executives believe it is a valid business strategy.’ We’ve seen some major global marketers excel in cause marketing with programs such as the Dawn Saves Wildlife, Pepsi Refresh, Boxtops for Education (General Mills) and Procter & Gamble’s Children’s Safe Drinking Water.
While there are new developments in cause marketing, the basic principles for success remain the same. It is essential that a for-profit organization be strategic in determining what cause it will support. Ideally, the cause should be synergistic with the organization’s current product or service offerings and/or its corporate mission. Nonprofit organizations who believe there may be synergy with a for-profit organization should be proactive and approach a for-profit organization with an idea to establish cause-marketing campaign. The Cause Marketing Forum is a good resource for information on cause marketing.
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