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The Importance of Cause-Related Marketing for your Nonprofit

Guest post by: michelle crossley

Article Overview: Cause-related marketing (CRM) has gained immensely in popularity over the last few years. The concept caught the imagination of corporate houses and non-profit organizations in the 1980s when a non-profit called “Restoration Fund” joined hands with American Express to raise funds.

The Importance of Cause-Related Marketing for your Nonprofit

Cause-related marketing (CRM) has gained immensely in popularity over the last few years. The concept caught the imagination of corporate houses and non-profit organizations in the 1980s when a non-profit called “Restoration Fund” joined hands with American Express to raise funds. American Express gave away a tiny portion of every credit card purchase to the fund, and effectively marketed its endeavor. The end result was that Restoration Fund received over $1.7m in funds, and the purchases with American Express credit cards grew by 27%. Win-Win Situation Cause-related marketing creates a win-win situation for everyone involved in the campaign. The business entity stands to gain by the immense publicity, enhanced brand image and positioning, and a direct boost to sales that it achieves due to public motivation for the cause. The business consolidates its corporate image as a socially responsible organization. The non-profit organization also stands to gain in equal proportion because it gets a portion of the sales achieved by the business entity. That may add up to a very substantial amount for the non-profit. Unconditional use of Funds An advantage from the point of view of the non-profit organization is that the contributions received through a cause-related marketing campaign are generally unrestricted and unconditional. In other words, the non-profit is free to use the funds to support even its overhead expenses. Building of Brand Value When the non-profit associates itself with a worthy cause in collaboration with a business organization of repute, it helps to enhance the image of the non-profit too. It builds confidence and trust of the potential donors in the non-profit. The association with a reputed corporate house acts like an endorsement of the nonprofit organization and the cause it supports. Free Advertising In a cause-related marketing project, generally the corporate house will earmark dedicated funds for a large-scale marketing campaign to leverage value for the business. Since the non-profit is partnering with the business house for the project, the name, logo and mission of the non-profit automatically get included in every part of the advertising campaign. That can generate immense publicity for the non-profit and the causes it supports. Media Coverage Such innovative campaigns such as cause-related marketing catch the attention of the media channels as well. Whether it is the print medium, electronic medium, or the Internet, such campaigns receive positive coverage from all quarters. This adds more legitimacy to the non-profit and its cause, because usually people trust the media reports more instinctively, as compared to paid advertising.

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Article Tags: cause related marketing



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