Anytime I’ve been out shopping the past few weeks, it’s been tough to miss that that October is “breast cancer awareness month.” Our local grocery store is even doing big displays and calling it “Pinktober.”

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

In March I had to pleasure of attending the Run Walk Ride Conference.  Unfortunately I didn’t get to stay for the entire event, but was treated to a day long seminar on local sponsorships.  Corporate sponsorships are an integral part of charity fundraisers such as athletic events, which was the context of this seminar, but also for many other special events.  Galas, auctions, outdoor festivals, and many other fundraisers rely on such partnerships.

The seminar was led by Joe Waters, who is the Director of Cause & Event Marketing at Boston Medical Center.   He gave a great lecture and interactive session.  It was an instant hit with me since Joe approached the topic with practical, step by step information.   Looking at the big picture though, there were two big ideas that I came away with:

1. Sponsor Focus – Many times nonprofits approach businesses only from their self interest.  They need an item for a silent auction, they want a sponsor to underwrite costs for the event, etc.  Knowingly or not this approach can come off to the business as a “gimme” attitude.  When I first started fundraising I was guilty of this tendency as well. I think most of the time people are well-meaning and don’t intend for their request to appear this way.  Sometimes a direct approach works as long as there is some benefit given, but there is a better way.

In the seminar Joe he took the idea of giving benefits to sponsors even further.  To paraphrase, “A sponsor-centric event drives promotion, publicity, revenue and participants.”  His example of this is the Halloween Town community event in Boston.  The proceeds go to Boston Medical Center, but the title sponsor, iParty gets equal billing.   There are built-in opportunities for many other sponsors to be a part.  In this post from October 2008 Joe shares exactly how they put the sponsor focus into action.

2. Creativity - The other big idea that I took away from this seminar was the power of creativity.  In formulating a great nonprofit-business partnership be willing to do something besides the traditional gold/silver/bronze sponsor levels.  Think about what assets your organization has and how you can leverage them to offer the greatest benefits to sponsors.

An event that was structured from the beginning to be sponsor-centric in a creative way was called Retail Therapy. It  benefited multiple stores, the consumers and the charity. Think of it like a mall sidewalk sale on cause marketing steroids.

Most of these stores have agreed to sell a Retail Therapy mobile for a buck. Mobile sales raise money and are a great promotion for the event (as we learned from Halloween Town). Each mobile has a $5 off coupon for a passport shoppers can use during the event to receive special discounts. That’s the second thing each store agreed to do: shoppers that present a passport get a discount or a free item. Most stores are offering a percentage off purchases with nine “flagship” stores offering even deeper discounts and a special gift if shoppers visit all nine.

It cost the stores nothing to participate and they all got the benefit of increased traffic, sales, and the “halo” effect of being aligned with a great charity.  Your event doesn’t literally have to take place at the store to offer a similar benefit.   How about giving out your sponsor’s coupons to attendees as they buy tickets?  Or adding a special promotion to goodie bags?  With a little creativity your partnership will bring a multitude of benefits for everyone involved. (Plus you will definitely be remembered and appreciated by these sponsors!)

More on Local Sponsorships

Joe is currently writing a series about how to sell local sponsorships.  I’d highly recommend reading these and following along as the next installments are released.

Selling Local Sponsorships for Nonprofits: Working Inside Out

Selling Local Sponsorships for Nonprofits: Prospecting Circles, Part I

Selling Local Sponsorships for Nonprofits: Prospecting Circles, Part II

Selling Local Sponsorships for Nonprofits: Reaching Out to Prospects

Selling Local Sponsorships for Nonprofits: Convincing Thinkers, Feelers & Deferers

Additional articles from other authors can be found at this link roundup: Support from the Business Community

There are many fundraising events where business and/or individual sponsors play an important role.  Here is a great question that we recently received on this topic:

What is the role of sponsors? Is the money raised through sponsors only used to help reach the goal or can some funds be used to help with running the event?

Thanks you for your time,
Claudia Booker

First let’s clarify that by “sponsors” we are referring to companies who are recognized in an event program or other advertising. In that case companies will put the donation into the “advertising” category of their accounting. Because you are offering them advertising in exchange for the money, they generally cannot claim it as a charitable donation for tax & accounting purposes.  It would be best to consult with an accountant regarding more specifics about tax receipts.

Unless the donor specifies otherwise, all money that comes in for an event can be used for planning and running of the event.  Most people will assume that some of their money must go toward planning and overhead. However, many supporters also want assurance that the bulk of their gift goes toward your cause, and its programs, not administrative costs.

This is another way that corporate sponsors can help out.  If you can get a company to “underwrite” the cost of a certain aspect of the event, then individuals can make donations to the charity and know their gift is going toward mission.  For example, if you were hosting a walk-a-thon, the cost of the sound and timing equipment could be paid for by a particular company.  Your organization would recognize them through banners, recognition in flyers and publicity, as having donated this specifically.  Then when walkers get pledges or make personal donations, their gift goes toward the cause more directly.

This week’s roundup features a variety links related to garnering support for your cause from the business community.

6 Tips for Creating Successful Nonprofit/Business Partnerships from the Stanford Social Innovation Review, Stanford University

Fundraising Secret #14: Don’t be hard on local businesses from Fundraising Coach Marc Pitman

The Single Best Way to Turn Local Businesses into School Supporters from Jim Berigan of Top School Fundraisers

Small Business & Cause Related Marketing: Getting Started from Cause Marketing Forum

How to Approach Corporate Sponsors by Amy Casey

The Republic of Tea company is partnering with the Susan G. Komen Breast Cancer Foundation to raise funds for cancer research with the Sip for a Cure program.

The tea company created several specialty flavors of bag tea just for this campaign including grapefruit, pink rose, pink lady apple, and lemonade. Other products in the campaign include bottled tea and marmalade. A portion of the revenues from all Sip for the Cure products sold are donated directly to the Komen Foundation, with nothing to mail in and no response required from customers.

In the past few years The Komen Foundation has actively pursued corporate partnerships in order to raise funds. The type of partnerships established by Komen can be a good lesson and example for other non profits.

It is always important that a partnership program between a business and a non profit organization be of benefit to both organizations. As in the case of The Republic of Tea, the tea company benefits by an increase in product sales with some positive PR in the process.

While the amount donated per item may be small, the volume of sales could add up to a large donation to the foundation. In fact, for 2005, The Republic of Tea has guaranteed a minimum donation of $50,000 to the Komen Foundation through the Sip for the Cure program. The company has a long term goal of $1 million in donations to the Komen Foundation and has contributed over $420,767 as of this August.

The Komen – Republic of Tea partnership demonstrates the power of corporate sponsorship programs. When non profit organizations partner with large companies with national distribution or outlets they can benefit from the volume of business that the company is already doing. The foundation receives additional advertising and exposure at no cost to them.

Partnership with smaller local or regional companies can have similar effects when the relationship between the two groups is strong and the program well designed and organized.

Shop for the Republic of Tea on Amazon.com

Several newsletter subscribers have written to me asking about corporate sponsorship from the business’s point of view. If you own, manage or are in a position of influence at a company, consider partnering with a non profit organization.

Both NPOs and businesses should always keep in mind that such partnerships should be a win-win situation for both parties.

Boost Your Business by Partnering with a Non Profit Organization

Is your business looking for new and creative ways to gain publicity and build your customer base? Partnering with non profit organizations
may benefit your business in many ways.

Why business owners and managers should consider supporting non profits as part of their marketing strategy:

1. Advertising opportunities are usually offered when non profit organizations request corporate sponsorship. Types of advertising may include a business card size ad in a program, a sign at an event, or your business name mentioned in radio or TV ads.
2. Partnering with non profits increases public relations and a general feeling of goodwill toward your company.
3. Participating in the planning of non profit events, attending an event, or volunteering your time increases your opportunities to meet potential customers.
4. Finally, there are tax breaks for donating money to a charitable cause. Check with your accountant for more details.

There are many ways that business owners can partner with non profit organizations in order to reach more potential customers.

Volunteering Your Time

Volunteering your time to help a non profit cause will give you an opportunity to develop relationships with non profit leaders and volunteers. You can work on volunteer committees, planning events, or even just stuffing envelopes.

How about donating an hour or two to man the phones for MDA on labor day weekend, a public television drive or another telethon? How about staffing a booth at a school carnival? Savvy business people see such volunteer activities as opportunities to connect with other business people, network and build relationships with potential clients.

Donating Merchandise

Many non profit groups hold live and silent auctions or need door prizes for their events. This is an opportunity for you to show potential clients your merchandise or sample your services. This strategy works well for many types of businesses, here’s some examples:

• A photographer donates a gift certificate AND loans the NPO a large scale portrait from their portfolio. Even if someone does not win the gift certificate, they may be impressed with your style of photography and call to set up an appointment anyway!
• Restaurants have an easy way out on this one! Donate a gift certificate to the non profit organization. The receiver gets to sample your food, service and atmosphere. Who knows, you may have just gained a customer for life!

Financial Donations

Donating a financial gift to a charity of your choice may have advertising and tax benefits as discussed earlier. Attending Non Profit Events Charities host a variety of fun events such as arts festivals, dinners, galas, casino nights and auctions. Participating in a charity fundraiser or
other event will give you an easy way to donate financially to the group. Events also provide time to build relationships with other business
people and potential clients, in a fun relaxed environment.

Donating Facilities

Does your company have a gym, banquet facility or auditorium? By donating or offering a reduced rate to non profit organizations, you may receive great public relations and word of mouth advertising benefits in return. Here’s a great example: A bowling center in Florida offers their facility for students to hold a bowl-a-thon. Students get per pin pledges prior to the event. According to owner, Lisa Ciniello, “The Bowling Centers do not make alot of money, but we encourage these events as it gives great exposure. In our locations we charge $5.00 to $8.00 per student and no charge for rental shoes.”

Connecting With Your Community

One of the best ways to find opportunities to donate to non profits and network with other business leaders is to join a civic club or chamber
of commerce. These organizations meet 1-4 times per month in your local city. They usually have a small list of favorite charities or support
their own foundations. A few of the civic clubs that you may want to consider joining:

Optimist International
Lion’s Club
Kiwanis International

Finally, partnering with non profit organizations gives your business a way to reach out to the local community. Your business can contribute to the greater good and help many people, just by joining forces with charitable organizations.

In the February newsletter, sent last week, I talked about how to go about getting corporate sponsors. Here’s a exerpt:

WHO to Ask for Corporate Sponsorships

Always consider how your fundraising event or program will benefit the business. If a business does not have some kind of vested interest in your organization or event, it will not be likely donate. Their interest may be either because of matching interests (they support your cause), they see value in the advertising or marketing opportunity you offer them, or both.

Businesses receive many requests for charitable contributions each year (some receive hundreds or even thousands.) They need a compelling reason to donate to your specific group.

HOW to Ask for Corporate Sponsorships

The most common way to ask for a sponsorship is through a letter. Donation request letters are a balancing act between showing the benefit to the sponsoring business and describing the reason you are asking.

I recently came across a great article that gives more detail regarding both who and how to ask for sponsorships. You can view this article at Nonprofits.org.