Get your biz up! Cause-Related Marketing

Cause-related marketing (CRM) is defined as the public association of a for-profit company with a nonprofit organization, intended to promote the company's product or service and to raise money for the nonprofit. CRM is generally considered to be distinct from corporate philanthropy because the corporate dollars involved in CRM are not outright gifts to a nonprofit organization, hence not tax-deductible.

The phrase "cause-related marketing" was first used by American Express in 1983 to describe its campaign to raise money for the restoration of the Statue of Liberty. American Express made a one-cent donation to the Statue of Liberty every time someone used its charge card; the number of new card holders soon grew by 45%, and card usage increased by 28%.

In their efforts to diversify and enhance their funding base nonprofits have embraced CRM. The practice has evolved to include a wide range of activities from simple agreements to donate a percentage of the purchase price for a particular item or items to a charity for a specific project, to longer, more complex arrangements. Corporations too have been drawn to CRM due to the competition of the expanding global marketplace and the need to develop brand loyalty. A number of recent studies have documented that consumers carefully consider a company's reputation when making purchasing decisions and that a company's community involvement boosts employee morale and loyalty.

CRM has become a controversial topic among grantseekers, as nonprofits entering into CRM activities debate the ethics of lending their name and reputation to corporations. Some of the common criticisms of CRM are that it undermines traditional philanthropy, that nonprofits are changing their programs in order to attract CRM dollars, and that only well-established, noncontroversial causes can attract CRM dollars.

To find and develop CRM opportunities, nonprofit organizations should expand their research efforts beyond the traditional corporate giving directories and refer to the resources in the business departments of public and/or academic libraries.

For more info click here

- The Aficionado ~ 5000