Not for Profit & Cause Marketing Mid Term

Question 1

Charity vs Non Profit

Answer 1

Charity- Tax receipts and access to foundation funding which is restricted by law to registered charities.

Non for profit- Associations, clubs or societies, that are not charities and are organized and operated exclusive for social welfare, civic improvement, pleasure and any other purpose except for profit. And they are exempt from paying tax on revenue and can’t issue donation receipts

Question 2

What are the Marketing Functions in a Non Profit

Answer 2

Attracting funding
Attracting volunteers
Attracting clients and members
Building relationships with clients members donors stakeholders and the community
Communicating brand image
Educating society on the cause

Question 3

What is a Mission

Answer 3

Philosophical expression of values, which are the based need of the organization.

Brief summary of what the organization is doing to meet that need.

Question 4

What is a Vision

Answer 4

Describers the organizational aspiration and the difference it will make in the community
Time frame is future oriented
What the organization hopes if its dreams are realized
Inspires and directs fundraising and development
It changes as the needs change

Question 5

Why do People Donate

Answer 5

Feel compassion for people in need
Personally believe in the cause
Make a contribution to the community
Personally affected by the cause
Religious obligations
Income tax credit

Question 6

Why do People Volunteer

Answer 6

Connection to cause
Help others
Meet friends and fun
Learn new skills
Gain work experience
Test out a career option
Develop a personal leadership ability
Develop a “warm glow”

Question 7

How do You Segment your Database?

Answer 7

Simple strategies- name address and email

Gift information- prospect major loyal donor, source of first donation, projects they support, RFM (recenecy, frequency and monetary value)

Question 8

Donor Generations

Answer 8

Civics

Boomers

Gen X

Gen Y

Question 9

Donor Giving Habits

Answer 9

All generations are online giving and connecting, so the internet is a critical part of the communications and engagements mix

Younger generations are more likely to engage in all web specific based activities. Including, signing petitions, contributing a video and taking part in online forums.

The difference in the generation’s social media usage are notable.

23% of gen y say social media is important or very important compared to 0 % for civics and 3 % for Boomers

Question 10

Donor Personas - Civics

Answer 10

Civics - 25% of Total Giving

• Before 1945
• 2.4 million donors (shrinking)
• 87% of them give – avg gift $1507
• Support 7 charities on average
• Loyal, respect authority
• Motivation – Giving is the right thing to do !

Question 11

Donor Personas - Boomers

Answer 11

Boomers - 32% of Total Giving

• Born 1946-1964
• 5 million donors
• 66% give/$942 avg.
• Support close to 5 charities
• Strong work ethic, idealistic
• Motivation – Giving makes me feel good !

Question 12

Donor Personas - Gen X

Answer 12

Gen X - 27% of Total Giving

• Born 1965-1980 – in their 30’s and 40”s
• 4.8 million donors
• 79% give/ $831 average
• 4.5 charities supported
• Independent, results oriented, want recognition
• Motivation – Giving accomplishes my goals

Question 13

Donor Personas - Gen Y

Answer 13

Gen Y/Millennial- 16% of Total Giving

• Born 1981 - 1991
• 55% give / Avg. $325 annual
• Diverse, networked, look for transparency & accountability, challenge status quo, service learning

experience

• Motivation- Giving is one tool I use to make a difference in the world

Question 14

Donor Pyramid: Major Donors

Objectives, Strategies and Tactics

Answer 14

Major Donors:

Objective - Involve/Cultivate

Strategies - Give responsibilites more responsibilites,

Tactics - Increase contact and involvement

Question 15

Donor Pyramid - Loyal Donors

Answer 15

Objective- Renew/ upgrade stewardship-

Strategy- Maintain and strengthen the relationship, keep them involved and informed by giving them opportunities to participate.

Tactics - More responsibilites, more invitations

Question 16

Donor Pyramid - First Time Donors

Answer 16

Objecive - Inform. Convert to repeat donors

Question 17

Donor Pyramis - Prospects

Answer 17

Objective -Cultivate, awareness, acquire-

Strategy- Organizations need to pay attention to the prospect pipeline

Identification of prospects is a critical strategy.

Requires an awareness communications strategy with a direct response option to start building a database.

Keep track of everyone who interacts with your organization in any way. ASK for names! Understand who they are to attract the right donors who believe in the mission

Question 18

Direct Mail/Marketing Principles

Answer 18

1. Select Target Audience(s)/ lists / segmentation – today still use for Civics and Boomers for fundraising
2. Determine what gift $ levels you will request?
3. Compose / Write effective copy - your case /offer to communicate
4. Media and format selection
5. Premium selection (Pin,T-Shirt ?) – if using
6. Produce, test and mail
7. Track and analyze payback results

Question 19

Corporate Social Responsiblity - Why

Answer 19

Or other names for CSR such as corporate responsibility, sustainability, corporate citizenship have been important for more than 20 years

CSR means giving back to the community, customers and stakeholders (shareholders too) and to be responsible to the environment

The new CSR is about taking leadership and infusing values-based social purpose into a company’s brand, strategy and culture

It is a focus on “driving impact” so we are seeing leading corporations taking on innovative programs for social good.

Consumers – 53% of respondents buy or sell products to support charities they think are important

And 2/3 of this 53% say they are willing to pay more for products to support a cause

Respondents were encouraging of most cause marketing efforts and the right for companies to promote their connection with causes.

Question 20

Central Themes in Cause Related marketing (4 P’s)

Answer 20

Partner: mutually beneficial, collaborative relationship – an intersection of societal needs and corporate goals. Interconnected and interdependent.

Purpose: More than fundraising – the value add of marketing building awareness of & engagement with the mission

Passion: Combining the assets and strengths of both to make a difference in society

Profits: creating value for the NFP, communicating values for the corporation/brand

Question 21

Types of Cause Markting Campaigns

Answer 21

Transactional donation upon point of purchase or subsequent post-purchase consumer activity.

Digital utilize online microsites or social media platforms to encourage consumer donations or other online task.

Licensing

Message Focused utilizing business resources to share a specific cause-focused message.

Events raise money via runs, walks, celebrations, etc. or raise awareness via cleanups, health screenings, etc.

Question 22

How to Make Fundraisers Successful

Answer 22

Share unique experiences, through helping others and making a difference. Through interacting with people in a personal way through in person or writing.