1. Features

When evaluating service providers first decide on your goals and needs. For example, do you simply need a way to accept one time donations, or are there other options that you require such as:

• Designated fund giving
• Monthly giving (automated)
• Pledging (with a time limit, not open ended recurring)
• Memberships
• Event registration
• Sponsorship payment
• Memorials and honorariums
• Individual fundraising pages (for programs such as walk-a-thons)
• Team based fundraisers

Are these modules that you’ll need right away or are you anticipating adding these options in the future?  Depending on your short and long range plans you may start out with a very basic provider, or go ahead and choose a full featured system in preparation for future development.

2. Donation Volume

Next consider your anticipated volume of transactions, both the number of individual transactions and the total funds raised. If you are currently using another donations processor you’ll have some data to work with.  Otherwise, you’ll just have create some projections based on your goals.

Your anticipated online donations will influence the type of pricing model that will be best for your needs.  For example, if you are using a “micro-donations” strategy of $5-10 from thousands of donors, a pricing system that charges per transaction fees might be a bad idea.  On the other hand, if you anticipate a large total amount of donations, a flat fee rather than a percentage fee might be best.

3. Pricing

As mentioned above each provider has a different pricing structure.  Based on your own circumstances, such as the anticipated donation levels and the features you need, consider which pricing model is best for your group.

Some of the fees you may encounter include:

1. Flat fee per month or year
2. Credit card processing fees
3. Percentage fee taken from each donation (in addition to credit card processing; sometimes these two are combined)
4. Per transaction fees
5. One time set up fee

Also note that some providers handle all the financial transactions for you, while others run transactions through a third party merchant account which you set up separately.  Sometimes as an alternative to a merchant account you can use PayPal instead.

4. Security

Security is always important, so verify that the provider has all of the correct online security features in place.  Personal information used for transaction should be encrypted and protected with SSL.

You may look for security seals and information such as Verisign, SSL, Better Business Bureau accredication and privacy policies. Testimonials and case studies from satisfied clients can also bolster your confidence in the security and trustworthiness of the company.

5. Ease of use

Determine if the provider has easy to use software modules based on your particular needs.  If the company offers an online demo and/or telephone led demo with a consultant, that will give you a hands on experience. That way you can test out the system for yourself to see how user friendly it is both for administrators and how it will work for your supporters.

6. Customer service

Does the company provide customer service by telephone and email?  Is it easy to find their contact information and mailing address? Call the customer support line before  signing up for the service to see what kind of experience you have.  You’ll have a reason to contact support at some point, so you want to make sure ahead of time that they will be there for you when needed.

7. Organizational commitment

Last but certainly not least, take a long hard look at how online giving figures into your organization’s overall donations strategy.  There’s a lot more to internet donations than just added a “donate now” button!  If you invest a lot of money upfront and yet have no specific strategy for driving online donations, you could lose money and be quite disappointed.

Create a strategic plan for your group to impliment online giving including short and long term marketing.  Then use this plan to decide which third party service best suits your needs.

Donation providers to consider:

PayPal is the absolute most basic form of accepting donations online.  It lets you accept donations made with credit cards, debit cards, and PayPal.  There’s no monthly, set-up, or cancellation fees and low transaction fees.  Supporters don’t even need a PayPal account to make their donations. Of course with this simple option there are no built in donor tracking systems, email follow-up or other resources.

Earlier this year I wrote a comparison of three online service providers: Network for Good, Firstgiving, and Click and Pledge.  They each provide different features and one may be a good fit depending on your online fundraising needs.

Step by Step Fundraising is now directly affiliated with two online service providers:

DoJiggy may have a funny name, but this company offers some serious online fundraising services.  In addition to online donations, there are other separate modules for online auctions, pledge based events like walk-a-thons and golf registrations.  Each module has a separate annual fee.

With Qgiv all the features are included in one annual fee: online donations, recurring or monthly giving, event registration, special campaigns and honorariums.  During the online demo with one of their consultants, I found that the system was very easy to use.

Looking for more options?  Here’s a big list of online donation service providers. Read, click and research until you find the one that’s right for you!

This series is for anyone interested in promoting an idea or non-commercial message via blogs. Nonprofits, volunteers, activists and collectively those who I call “cause enthusiasts” can all find many benefits in blogging.

The truth is, there’s nothing complicated about what a blog is, or what it can do. Here are just a few examples of stories that can be posted to a blog that will help boost your fundraising efforts:

• Announcements about upcoming fundraising events
• Photos of items in your upcoming auction (gets people excited about attending and bidding!)
• Profiles of volunteers who made your special event successful
• Stories about service recipients who will be helped because of funds raised
• Acknowledgment and appreciation of corporate sponsors and major donors
• Progress on projects that fundraising efforts made possible

To find out more about blogging in simple terms see part 1 - What is a Blog?

Then discover the five different types of cause related blogs, examples of each and lessons you can learn from them in Part 2 - Who are cause bloggers?

The remaining four segments will be published in the near future.

In essence, to be effective your entire online communication strategy must be built around increasing donations, which has implications regarding how your website is designed and what information you offer.

Below are five keys to online fundraising success.  While some of them sound intuitive, a recent study of non-profit websites found that a surprising number of them do not meet these criteria.  Potential donors were left feeling frustrated and discouraged from donating.

To keep that from happening to your potential donors, take another look at your site:

1.  Does your website clearly outline who you are, what your mission is, and who you serve?

The key here is that the answers to these three questions must be readily available.  You shouldn’t have to dig for them, they should be apparent on the front page of the website.  Site visitors often stay just 1-2 minutes, and want quick answers.

Less than half of all non-profit sites studied in a Non-Profit Donation Usability Survey clearly answered these questions on their homepages, and difficulty navigating a site and finding information was the number one reported “donation killer”.  If you need to tweak your site, try to keep your text short and succinct, and use photos to help communicate who your target audience is.  Make your impact tangible so visitors can connect immediately with what you do.

2.  Does your site appeal to visitors on an emotional level?

Studies have demonstrated that statistics and rational arguments don’t drive online donations– stories of real people do.  Visitors need to be able to connect with real people on an emotional level, through a story that highlights their shared values.  Donors like to see faces and profiles of the people they will be helping, and they need to know that their donation (no matter how small) will really make a difference.  If you’re not sure what the emotional connection is that drives your cause, talk to some of your current donors.  Then communicate that “selling point” through stories of the real people you serve.

3.  Does your site explain how you will use donated money?

The Donation Usability Survey of non-profit websites found that only 1 of 23 sites surveyed actually explained what they would do with donations on their home page.  And many non-profits don’t even explain what they will do with donations on or leading to their donation page.  The more transparent and specific you can be about where donations go, the more confidence you will inspire in your donors.

For example if you can cost out your services (”for every $20 donation we receive, one child in X country will receive a year’s worth of school supplies”) you make your impact tangible and your donor knows that they’re making a real difference in someone’s life.  That is both compelling and rewarding.

4.  Make online giving quick, easy, and secure.

The more time it takes to make a donation, the more discouraged potential donors can become.  Make sure your online giving process is quick (don’t add in unnecessary survey questions for example), and consider adding security features (like McAfee or VeriSign) so donors can feel safe giving out their personal information.

5.  Reach out.

You can follow all of the previous steps impeccably, but if your site traffic is low then your pool of potential donors will be insignificant.  So how to attract new visitors and donors?

You can increase your traffic through online marketing and communication strategies such as e-newsletters with links back to your site, viral campaigns, social networking, directories, strategic online partnerships, online press releases, using well-indexed content management systems, or even paid advertising.  And just reworking your site to make sure it is fully search engine optimized can substantially increase your traffic.

So let’s turn to the dark side of your year-end fundraising campaign – and shine a light on mistakes many organizations make.

Here’s my Top 10 list of ways to sabotage your year-end fundraising effort.

1.  Send a letter that’s hard to read, with ponderous sentences, long paragraphs and no white space.  (This fails the “easy to read” test, which is the first hurdle for your reader, who is skimming your prose for the highlights only.)

2.  Send a letter much like last year’s with tired messaging, no visuals, no metaphors, no stories.  Your reader is unlikely to keep reading if it is not interesting.  You are not writing an academic treatise; instead you are writing marketing copy.

3.  Bury The Ask deep inside a paragraph at the end of a sentence. (Your reader must be able to easily find out how much you are asking for and for what purpose.)

4.  Don’t include a  reply envelope. (you’d be surprised how many organizations leave out this VITAL component – you have to make it easy for people to give!)

5.  Don’t update your web site. (Studies show that donors – even those who give by writing a check and sending it in the mail – will most often check out your web site to research you before they give.  And your website MUST look professional and up-to-date!)

6. Only send out one appeal letter. (this is the kiss of death for many campaigns.  Studies show that one letter will typically get a 15% response – NOT enough to make your year-end goal. Your donors are too busy and need repeated reminders. And no, it is not tacky to keep reminding them!)

7.  Don’t do phone followup. Studies show that a followup phone call can double your results.

8.  Don’t do an email push to non-donors the last two days of December. Studies show that a majority of on-line donors give in December and most of them are on the last two days of December.

9. Don’t send a PROMPT, warm, personal thank you immediately to your donors. And “warm, personal” does not mean “on behalf of the board of directors we thank you for blah blah” – this impersonal bunk doesn’t warm your donor’s heart.

10. Don’t have your board members call donors to thank them within 24 hours of the gift’s receipt. Penelope Burk’s landmark studies showed that when board members made this type of followup call, then subsequent gifts from the donors rose by 39%!

Its founders were not professionally trained in nonprofit management prior to starting their work.  They simply saw a need and decided to use their gifts to benefit others. They were very trusting and extremely hard-working.  This describes a lot of the people I personally know and have connected with online who are doing charitable work. Learning some lessons from this unfortunate story could prevent a similar disaster befalling your organization.

Carol and Hurt Porter Jr. ran a well-connected, million-dollar “model charity” in Houston -until it all came crashing down…Started in the kitchen of their modest northside house in 1984, Kid Care had grown spectacularly, feeding more than 20,000 a month in the nation’s first Meals on Wheels program for hungry children.

Full Story

The nonprofit did great work for the community and was very well known and respected.  But many factors led to its demise.  Some of these are simple traps that any nonprofit can fall into.  To me it highlights the importance of solid training in nonprofit work, having a responsible board who are educated about their duties and maintaining business-like practices.

Here are a few of the take-away lessons I found:

• Key staff members should have professional training; have a budget for continuing education for all of your staff.
• Provide training sessions for volunteers and board members.
• Create clear policies to protect your organization, i.e. conflict of interest, and enforce them.
• Always keep personal and organizational (business) expenses separate.
• Work with legal and accounting professionals that are experienced in working with nonprofits.
• Members of your board should be concerned about the mission, their roles and responsibilities and actively participate.
• Be open to listening to wise counsel, discuss options when approaching a new project. Include staff, board members, nonprofit consultants, other nonprofit leaders in your area and other professionals so you make wise decisions for the future.
• Have a plan of succession for key leadership roles; don’t fall into “founder’s syndrome.” The cause is not about YOU, it’s about those you serve.

I also find the story quite sad… the Porters sound like honest, caring people and their work helped hundreds of thousands of children and families.  Missteps in organizational management and the over-aggressiveness of a reporter and Attorney General ended what was once a thriving ministry.  (On a positive note, the Porters and their friends continue to provide food for the hungry on a more modest basis.)

You can read Don’s synopsis here (includes additional references) or the entire story on AllBusiness. It’s a long story, but I would highly recommend it!

I got an email back from Tony with some great comments that maybe you can relate to.

Hi Sandra,

Thank you for this special edition and especially for the three step plan “It’s Fundraising Time Again“.  You made a very important point in step 2 and I hope everyone who gets to read the publication will pick it out and always remember to apply it.  A detailed planning meeting does not necessary need too many people.

From personal experience, the more people you invite to such meetings, the more rowdy, less focused and unnecessarily prolonged the meeting becomes, and at the end of the day you achieve very little in terms of planning and strategizing.

Thank you once again for all your effort.

Tony Onyema
Abuja, Nigeria

The expression ”too many cooks spoil the soup” comes to mind!  I can sure remember being trapped in a room with too many people, resulting in a long and unproductive meeting.

What are some of the struggles you’ve had with meetings?  What are some ways that you’ve overcome them?  Leave a comment below…

Here’s the three step plan to focus your year-end fundraising drive that I published last year: It’s Fundraising Time Again.

Gail Perry reminds us that individuals make up around 80% of all contributions to charitable organizations.  So focus on this group (rather than foundations, corporations) to reach your year-end fundraising goals.

Best practices and case studies are included in these Tips for End-of-Year Campaign Success from Abny Santicola of Fundraising Success.

Marc Pitman offers some practical pointers and encourages you to start your year-end fundraising letter strategy today!

Jason Dick advises us to pick up the phone to solicit major gifts.

No matter what, “You must ask for a gift. Don’t assume that people will give if they can.  Encourage their giving by offering them the opportunity to make a gift.” Sandy Rees says in The 3 things that you should do for End-of-Year Fundraising Success.

The teleseminar recording “Fast Fundraising for Year-End” with Sandy Rees, Marc Pitman and myself is included as a bonus when you order the ebook or paperback  7 Essential Steps to Raising Money by Mail.

Shirley Sexton of See3 Communications recently hosted a webinar What Donors Want This End of Year Season.

Other learning opportunities are available to help make your year-end campaign great.  See a list that I posted a week ago, Fundraising Training Events, Teleseminars for Fall 2009 (some have already happened.)

Sometimes seminars just give you general information that might be helpful “someday,” while other times you are looking for something specific that you can put into practice right away.  For your end of year fundraising to be truly successful this year, why not get an edge by taking a class related to what your major fundraising focus is this year?

Here are some of the training opportunities available from various service providers, listed here as a service to Step by Step Fundraising readers.  Just click the links provided for more information.  Happy learning!

Teleseminars & Webinars

Learn from the comfort of your home or office!  These are listed in chronological order.

6 Steps to Sponsorship Success: What Nonprofit Leaders Need to Know
Date & Time: October 15, 3:30 PM EST
Speaker: Gail Bower
Cost: $60 Non-member/$50 State association member
Offered by: The National Council of Nonprofits

Many organizations are seeking ways to supplement funding sources that have pulled back in the past year. What is your organization doing to rejuvenate its relationships with potential corporate funders? Corporate sponsorship, done creatively, may be an answer for your organization.
Information & registration

Fundraising Responsibilities of Nonprofit Boards
Date & Time: October 19, 1:30 PM EST
Speaker: James M. Greenfield, ACFRE, FAHP
Cost: $87
Offered by: Charity Channel

Discover how to engage board members in fundraising, educate boards on their responsibilities and identify criteria for fundraising performance analysis.
Information & registration | Other topics available

“Missionize” Your Year-end Fundraising
Date & Time: October 20, 1 PM EST
Speaker: Terry Axelrod
Cost: Free
Offered by: Network for Good

The holiday season is upon us and, especially this year, thoughts are turning to good food, good cheer, and–of course–fundraising. While people are in a “caring and sharing” mood, they will also be looking more carefully as they make their year-end contributions. Does your nonprofit organization have a plan for strategically connecting with your donors over the holidays? Are you prepared to “missionize” each event?
Information & registration

Marketing & PR on a Shoestring: Keeping Communications Front & Center
Date & Time: October 28, 1PM EST
Speaker: Hannah Brazee Gregory
Cost: $99
Offered by: Society for Nonprofit Organizations (SNPO)

Covers: The most common mistakes nonprofit organizations make when it comes to marketing and public relations; strategies for improving your organizations message and brand; Real things you can do TODAY (at no cost) to market your nonprofit organization and further its mission.
Information & registration

Does Your Fundraising Measure Up?
Date & Time: October 28, 12 PM EST
Speaker: Linda Lysakowski, ACFRE
Cost: $10
Offered by: The NonProfit National Resource Directory

When and how do you evaluate your fundraising program? What should you measure? Why should you assess your development program? Who should be involved? Linda will discuss the who, what, when, where, why of a development audit, including standards against which to measure your program.
Information & registration

Listening to Your Donors through Data Gathering and Analysis
Date & Time: October 29, 2 PM EST
Speakers: Brian Cowart, Sr. Director, Mail Acquisition & Donor Retention, ALSAC/St. Jude Children’s Research Hospital; Ann Crowley, Membership Director, Human Rights Campaign; Lindsey Twombly, Human Rights Campaign; George Whelan, Consumer Reports Foundation
Cost: $59 (Free to all 2009 New York Nonprofit Conference attendees.)
Offered by: Direct Marketing Association

Discover the ways in which other organizations are using donor touch points and data to determine the next steps in their donor relationships. Whether the data is based on one-to-one interactions or direct marketing interactions captured through the mail/web, it is all valuable if used in the right way.
Information & registration

Building a Development Committee
Date & Time: November 2, 1:30 PM EST
Speaker: Linda Lysakowski, ACFRE
Cost: $87
Offered by: Charity Channel

Webinar will cover who should serve on the Development Committee, what the committee’s role is, and how to recruit the right people to serve on the Development Committee.
Information & registration | Other topics available

Online Fundraising Bootcamp November 4: Special E-Clinic: Online Fundraising Bootcamp
Date & Time: November 4, 1 PM EST
Speaker: Kivi Leroux Miller
Cost: $75
Offered by: Nonprofit Marketing Guide

Is your online marketing and fundraising program ready to make the most of end-of-year giving? Whip it into shape by getting the must-knows and must-dos. Limited to 20 nonprofits only!
Information & registration | Other topics available

Strengthening Foundation Relationships
Date & Time: November 20, 1:30 PM EST
Format: Webinar
Speaker: John Greenhoe, CFRE
Cost: $87
Offered by: Charity Channel

Learn specific methods for making the initial approach to a prospective funder, and for following up in ways that make them stand out; strategies for building lasting and fulfilling foundation partnerships.
Information & registration | Other topics available

Mobilizing Volunteers in the Face of Budget Cuts
Date & Time: December, 1 PM EST
Speaker: Susan Ellis, President, Energize Inc.
Cost: $99
Offered by: Society for Nonprofit Organizations (SNPO)

Covers: Realistic expectations for volunteer contributions; determining what you need and finding the right volunteers who can really help; the wrong way to try to fill staff vacancies with volunteers; The right way to engage volunteers in stretching your budget.
Information & registration

Teleseminars & Webinars - On Demand or Download

These recorded and/or transcribed seminars are available at anytime that works for you!

Strengthen Your Year-End Fund Raising ­ And Sow the Seeds for a Successful 2010
Speaker: Bruce W. Flessner, Karla A. Williams
Cost: Non Subscribers $165.00, Subscribers $95.00
Offered by: The Chronicle of Philanthropy

This Webinar discusses strategies that charities can use to advance their year-end fund raising as they: Solicit major gifts, plan special events and Develop direct-mail, telephone, and online appeals.
Information & registration

Secrets of the Charity Auction Experts
Speakers: Dawn Rose-Sohnly, Steve Lieberstein, Karin Costa, Ray Hansen
Cost: $67
Offered by: Step by Step Fundraising

These seminars will make planning your auction easier and more profitable.  Includes audio recordings, printed transcripts and a Quick Start Guide - “81 Tips to Make Your Auction Great.”
Information & registration

I Can’t Thank You Enough: Winning Stewardship Strategies For The Tough Economy
Speaker: Marcy Heim, CFRE
Cost: $99
Offered by: Affinity Fundraising Seminars

Learn the key elements of a thoughtful stewardship plan; hear examples of how good stewardship is practiced; discover the importance of donor satisfaction and how to satisfy donors; get new insights and strategies for retaining your donors.
Information & registration | Other topics

Conferences and Seminars (In-Person)

Attending a live conference or workshop has many added benefits! You’ll have time to ask questions of the speakers before and after the sessions, network with other participants and attend the trade shows.

The American Association of Grant Professionals (AAGP) Annual Conference
Dates: November 4 - 7
Location: Austin, TX
Speaker: Various; Keynotes from
Cost: $650 members, $750 non-members
Offered by: The American Association of Grant Professionals (AAGP)

High-quality workshops on a wide variety of topics related to the grant field for a variety of skill levels and subject areas. The conference draws grant proposal writers, grant managers, nonprofit administrators, and consultants.
Information & registration

Fundraising Conference
Dates: Varies by location October - December 2009
Locations: Austin TX, Memphis TN, St. Louis MO, Minneapolis MN, Chicago IL, New Jersey, Charlotte NC
Speakers: Various
Cost: $55 per session or $169 full day
Offered by: OEG Conferences

Offers a variety of topics for fundraisers and nonprofit managers: grants, online fundraising, direct mail and other sessions available, depending on location.
Information & registration

Add to this list…

Do you know of other upcoming fundraising seminars?  Post the information in the comment box below.

Over the years cause marketing campaigns like these have grown steadily and with good reason.  They can be a great source of funding, brand building and cause awareness for the charity.  Benefits for corporations include increased sales of merchandise and public relations.

Nonprofits often seek corporate partnerships primarily for funding reasons.  The most common program involves co-branded merchandise, such as food items, clothing or other retail goods sold to consumers.  A portion of the proceeds then benefit the charity.

The definition of cause marketing, according to Wikipedia, is:

a type of marketing involving the cooperative efforts of a “for profit” business and a non-profit organization for mutual benefit. The term is sometimes used more broadly and generally to refer to any type of marketing effort for social and other charitable causes, including in-house marketing efforts by non-profit organizations. Cause marketing differs from corporate giving (philanthropy) as the latter generally involves a specific donation that is tax deductible, while cause marketing is a marketing relationship generally not based on a donation.

While these campaigns can be beneficial, a nonprofit-business partnerships should not be entered into lightly.  They require time, effort and often upfront costs to be successful.   So you can consider whether this may be a right for your nonprofit organization or business, this article offers a basic primer, including some examples and resources for further research. (Click here for a printable version.)

Cause marketing partnerships must be win-win-win

You’ve probably heard of the biz jargon called “win-win” where both parties in a business transaction must benefit equally.  In cause marketing this is certainly the case.  I often hear from nonprofits who want corporations to “show them the money” and don’t take the time to look at it from the business’s point of view.  There must be financial, PR or some other advantage to the business in order for them to participate in any partnership, from the simplest event sponsorship to a national cause marketing campaign.   There is often a third group that must be considered, consumers, and if this promotion benefits them.

The best cause marketing campaigns benefit all three groups. As Gennefer Snowfield says, cause marketing “must be a) transparent, b) authentic, and c) integrated. The belief is that if a cause marketing initiative upholds these tenets, it will be effective in connecting the consumer, company, and cause in ways that benefit all parties.”

Benefits for nonprofit organizations

While the main factor for many charities is funding, other benefits may include improving name brand awareness or cause awareness.  The nonprofit should have one primary goal for the campaign though.  Is it short term fundraising, a long term funding partnership, public awareness or something else?  Decide on this goal first and it will inform the rest of your decision making.

Here are a few questions to consider when evaluating potential partners:

• Who is our target market for the campaign?
• Does the company already reach that market?
• If a product is involved is it a good fit with the values our organization represents?
• Does the company itself line up with our values, mission and goals?
• What other nonprofit partners does the company have?  Are we in good company? Or are there too many other partners so that we may get lost in the crowd?
• If the campaign is primarily targeted toward consumers, does the company have the distribution and customer base needed for the campaign to succeed?
• What is the time frame for implementation?  Are we looking for a launch date within a few months? Or do both sides have the time and commitment level to invest in a campaign that requires a long term approach?

Alex’s Lemonade Stand Foundation (ALSF) provides a great example of cause marketing through product sales.  This foundation supports efforts to find a cure for childhood cancer through simple, grassroots fundraising and advocacy.  Support comes especially from children who are inspired by the founder Alexandra “Alex” Scott who simply wanted to help other kids like herself who were battling cancer. I’ve been following them for a few years and am constantly amazed by the creativity used by this foundation to fund their mission.

This year they partnered with candy brand Mike and Ike for special edition flavors with ALSF branded packaging.  The timing of the product release was intentional: September was Childhood cancer awareness month.  Like most product based cause marketing campaigns, a portion of the proceeds from sales went to the nonprofit. One very smart move from ALSF was securing a minimum donation of $100,000 per year to the foundation.

This campaign facilitated the goals of significant funds raised and publicity by using a product that tied in to the nonprofit’s lemon themed branding.  While I had seen Mike and Ike before I’d never purchased any until I heard about the ALSF promotion on Twitter.   Next time I was at Walgreen’s I made a point to get my hands on a box.  Judging from the number of other flavor varieties the company sells, this promotion also seems to align closely with Mike and Ike’s strategy of having many different flavor boxes to choose from.  There’s not much doubt that I enjoyed the candy, as the next time I was at the store another box landed in my grocery cart.  Will I buy other flavors of this candy in the future?  Quite possibly.  Which leads us to our next important factor about a cause marketing campaign: benefits to the business.

Benefits for businesses

As I mentioned earlier, the business must have a reason for entering into this agreement or it will simply not work for them.  After all, companies are in the business of making money, not giving it away.  Just like nonprofits, the business should have a specific goal in mind for the partnership.

Here are some of the potential benefits to businesses for entering into a cause marketing campaign:

• Sell more of an existing product by giving it a new spin
• Create new products to generate consumer interest in the brand (improving sales in the process)
• Retailers may wish to see more foot traffic into their store
• Public relations, the “halo effect” of being associated with a good cause
• Improve employee morale; team building

Cause Marketing Forum reports that another reason companies are turning to cause marketing is because “research shows that many of today’s consumers demand more than just a quality product or an amusing commercial – they want to buy brands that resonate with their values.”

Republic of Tea has produced several nonprofit related products over the years including Sip for the Cure benefiting Komen, promoted during October for Breast Cancer Awareness Month.   For this illustration though I’d like to highlight another of the company’s nonprofit partnerships, a line called Little Citizen’s Herb Teas.

Earlier this year Republic of Tea sent me a sample of the Strawberry Vanilla flavor.  I don’t do coffee, but I love hot tea in winter and iced tea in the summer.  This is a deliciously sweet flavor that I’d definitely recommend. $1, or roughly 10%,  from the sale of each tin supports Room To Read in their mission to educate children around the world by building schools, libraries and providing educational materials for developing countries.

I recently checked in with the company to find out how the campaign was going.  Here’s what Marideth Post, “Minister of Enlightenment” at The Republic of Tea had to say:

The Little Citizens’ Herb Teas exceeded our expectations. First, we blended enough tea to last us six months - we sold through it in three months - quickly made more. Our commitment to Room to Read was to build two libraries in South Africa in 2009 - we’ve already raised the funds to do that and will likely put three more outside of South Africa. Most of all, our entire company is behind Room to Read - we attend and host their local chapter events, we’ve made presentations on behalf of Room to Read throughout the US and we had founder, John Wood as the guest speaker at our annual company meeting. It’s been a perfect partnership.

While company leaders must be pleased to see such impressive sales figures, it’s clear that this is much more than just another product line or sales tactic for them.  The Republic of Tea has seen a positive impact on the company culture, building employee morale in ways than a “team building day” could not. While these types of benefits may not be easy to quantify on a sales chart, they have lasting implications nonetheless.

Benefits for Consumers

Whether your campaign involves a co-branded product or not, the viewpoint of the consumer must be taken into consideration.  What level of involvement does the public play in this campaign?  Are you asking them to buy something they wouldn’t normally just because it has your logo on it or helps fund your group?  Will the consumer perceive that participating is beneficial to them?

Also consider how easy is will be for people to participate in the campaign.  While programs such as Yoplait yogurt’s pink lids and  have been successful, be careful about requiring additional action on the part of the consumer past the initial purchase. Box Tops for Education is a similarly structured program where proof of purchase must be turned it.  However, specific schools benefit and consumers see a direct benefit from participating.  I’d be much more likely to cut out and mail labels when it benefits my child.

Campaigns that offer tangible benefits to the consumer may see greater results.  Here’s a great example:

While October may be “think pink” month for breast cancer awareness, for Boston Medical Center (BMC) it’s all about Halloween Town.  This is a huge community wide carnival organized by BMC.  There are multiple benefits for all involved — BMC as the nonprofit beneficiary, retailer iParty as the headline sponsor, other businesses who participate and the public who attend.

One of the ways that they publicize the event, and raise funds for BMC, ahead of time is through the pin-up campaign.  You’ve likely seen many different types of point-of-sale card promotions at retail stores since many charities do them.  Cashiers simply ask customers if they’d like make a small donation and write their name on a colorful, theme shaped card that’s then placed on the wall.  For most programs that’s where it ends.  (If it begins at all.  What incentive does the donor have other than giving to a “good cause” they may or may not know anything about?)

The campaign that BMC conducts has a significant advantage that I have never seen other groups use.  They actually provide real benefits to the donor in exchange for their gift!  Each pin-up has a tear off portion with valuable coupons including discount admission to the big Halloween Town event.

But wait, there’s more.  There are benefits for the businesses as well.  First it’s brand advertising and promotion right on the cards.  Then when customers use these coupons at their store, they benefit from increased foot traffic and sales.   Retailers can track how many coupons were used and the exact financial impact it has on their business.  This can greatly encourage sponsors to get on board next year.

Joe Waters, marketing director at BMC describes the campaign in greater detail on his blog with Countdown to Halloween Town: Pinups to the People.

Motive matters

It’s important to consider how a cause marketing campaign will be received so you can head-off potential objections from all three of your stakeholder audiences.

Unfortunately some potential criticisms have grown out of legitimate concerns from actual marketing promotions. Especially with the pink for breast cancer type campaigns, there are manufacturers that have jumped on the bandwagon, producing pink themed merchandise.  Wholesalers can sell these items to organizations or individuals who then use them to raise funds or as thank you gifts.  On the other hand there are many items that end up in retail store shelves that provide no financial benefit to any charity at all.

Other times you will see labels on merchandise stating that the brand “supports breast cancer awareness.”  That’s fine, but it’s a rather vague statement isn’t it.  Many consumer will not think twice about it.  Call me cynical, but when I see something like that I wonder, how do they support it?  Are they donating money or simply saying they lend support as a marketing line?

These types of actions have even led to terms such as pinkwashing and greenwashing which refer to gray area or even unethical tactics on the part of corporations. In response, the Think Before You Pink campaign calls for “more transparency and accountability by companies that take part in breast cancer fundraising, and encourages consumers to ask critical questions about pink ribbon promotions.”  I’m sure watchdog organization exist for other causes as well.

Since this article is addressed to you, good citizen with pure motives, I bring up this negativity with the purpose that you are aware that criticisms, both well founded and not, are out there.  With such knowledge you can be sure from the start that your campaign is sound and shows the best face to the world.

Here are some suggestions for proactive steps you can take to address concerns and prevent misconceptions:

• First of all, the planning team (both parties: the nonprofit and the business) needs to be clear on their respective goals and objectives right from the start.  When goals are clear and all of the potential issues are considered, many pitfalls can be avoided in advance.
• Reach out to the nonprofit’s most vocal supporters and ask them in advance their opinion of the campaign (focus groups, online surveys, board meetings, etc.) before committing.
• Be prepared to walk away from a deal that would not be in the best interest of your nonprofit.  Jocelyne Daw author of the book Cause Marketing for Nonprofits says, “Be sure the company you work with really “walks the talk” in its support of your mission and the greater community.”
• Demonstrate the results of your campaign:
  • In the first year prove in advance that the campaign is solid.  As mentioned earlier, Alex’s Lemonade did this by securing a minimum commitment from Mike and Ike. It says so right on the back of the box!
  • In subsequent years tell consumers what the partnership has produced for the nonprofit in the past.  Hit multiple communication channels including product packaging and press releases.
• Provide information and step-by-step instructions for partners. For example, if your promotion depends on retail sales people connect with them before, during and after the campaign.  Make sure they have the information needed to support your efforts.  Are they familiar with the cause?  Can you show a video at staff meeting to familiarize them?  Say thanks for their help in advance with something special like a t-shirt or a free sample. Remember, they are your ambassadors!
• Follow up after the campaign with business partners. Show appreciation to corporate partners at all levels and let them know how their participation matters in your cause.
• Monitor the web for mentions about the campaign using tools such as Google Alerts and Twitter.
• Publicize results through the media: press releases, on your websites, social media.  Public relations at every stage of the program will help boost public confidence and reduce the possibility of negative reactions.

Where to go from here

Cause marketing can be an effective strategy for nonprofits large and small.  Alex’s Lemonade is a relatively new foundation and yet has made great strides with fundraising and publicity not just with Mike and Ike but also branded merchandise.  I saw them with yellow and pink lemonade rhinestone jewelry on QVC a few weeks ago!  A point-of-sale card program is a great start for many local organizations.  To see how a small organization implimented this strategy, see Joe Waters blog post about Jake’s Ride.

The Cause Marketing Forum has a yearly conference with awards for best in cause marketing.  They also offer telesclasses and informative updates throughout the year.  Here’s a great list of links to more case studies, tips and tactics that they have compiled: Cause Marketing 101.

Jocelyne Daw’s book Cause Marketing for Nonprofits explores the values driven approach to cause marketing. She describes the different types of campaigns, with case studies, and how to plan and execute them effectively.

Like to print this article for reference later?  Here’s this guide in PDF format (if you save and read on your computer links are all clickable): Step by Step Fundraising Guide to Cause Marketing

eTapestry works with nonprofits to streamline their donor management system.  They also offer an online giving,  specialized email tools and event registration that are all tied together in a web-based environment. View this recent post for a case study: eTapestry Helps Food Bank Recover From Disaster

Raise The Funds creates an exciting, and unusual event that can serve as a fundraiser for your group. Michael C. Anthony performs his comedy hypnosis show “Hypnotized” all across the US. The company provides set up for the show and your group provides the venue and ticket sales. View this post to see my favorite video from his performances: Laughter Brings People Together at Volunteer and Fundraising Events

For more information about sponsorship opportunities on Step by Step Fundraising see our advertising page.