Sunday, September 21, 2008

Profit for non-profits (and other benefits)

Non-profits or charities face the challenges of fund-raising everyday. Traditional means are still useful, but are giving way to other methods.

For example, corporate partnerships are an incredibly effective way to boost a charity's bottom line.
http://www.imakenews.com/ephilanthropy/e_article000438373.cfm?x=b11,0,w
Instead of relying on patrons to send in donations directly to their main office, many non-profits are allowing donations to go through companies like Wal-Mart or General Mills. This is a way for the non-profit to get and keep their message and name out there without absorbing the full cost of marketing. This not only benefits, say, the Red Cross; it also gives their corporate partners a boost.

Let's face it. If a company is not socially responsible, or even worse--socially irresponsible, than the chances of them rising to the top drops. If given a choice between two companies selling the same thing at the same price, most would choose the one acting in the best interests of the community. Social irresponsibility makes good relationships with the public a struggle, at the very least. Remember the Exxon/Valdez catastropohe, anyone?
http://www.eoearth.org/article/Exxon_Valdez_oil_spill

Beyond that is still the issue of money. As mentioned earlier, mailed in donations are decreasing. Therefore, other methods must be on the rise. Online donations directly through non-profit websites as well as links from their corporate partners' sites are increasing.
http://american.redcross.org/site/PageServer?pagename=ntld_main
Race for the Cure
Other ways to raise money through corporate sponsors are employee donations (perhaps through paycheck deductions) and donations for every kind of a certain product sold.

In the end, the partnership between charities and for profit businesses is a winning situation for all involved.

2 comments:

Kristie Aylett, APR said...

As I was licking the yogurt from my pink top this morning, I questioned if my sending it to Yoplait will really make a difference to Komen. Will they really receive 1 million of the special pink lids as part of this partnership and make the full donation of $1.5 million? Couldn't I just click somewhere instead?

Kgal9520 said...

You could. In fact, that would be great! There is another way to look at it, though. Either way the Foundation gets the money. Whether Yoplait actually raises it through the pink lids or a donor makes the contribution directly, the program still got you to think about the cause and contributing to it. Albeit, maybe not the way it planned.