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| Path: Main Street : Resources & Library : Research Articles : Feature Article |
Charity gets marketing savvySeptember 19, 1995; Canadian FundRaiser
More and more non-profits are acquiring a new market-savvy. Tired of the widening gap between human needs and insufficient resources, they are rising to the challenge of securing additional earned income in a most creative way. Some are lending or licensing their names and logos to corporations and appropriate product lines. Others are collecting significant royalties based on product sales. One interesting case in point is the American Arthritis Foundation. According to Don Riggin, president and CEO of the Foundation.
"It is the prototype for future relationships between not-for-profit organizations and corporate America. The trend is for organizations to develop strategic partnerships with companies rather than enter into short-term relationships as in the past."
New visibility and awareness
Riggin knows of what he speaks. Since initiating a relationship with Johnson & Johnson's McNeil unit this past October, a new line of pain relievers has gone on sale bearing the Arthritis Foundation name. That partnership was sealed with a proceeds guarantee of $1 million flowing annually in support of arthritis research. So far, the effort has been successful. Along with new visibility and bolstered awareness, more than 17,000 new members have signed on -- largely the result of a membership sheet, foundation information and a toll-free number included in every package. "This is really the Arthritis Foundation in a box," said Riggin. "Our programs and services were not at the point we wanted them to be. Not enough people with arthritis had a connection to the foundation. This product launch has caused people to become aware of us." The President of The Arthritis Society of Canada, Dennis Morrice, is quick to praise his U.S. counterpart. Given his marketing background and upbeat and positive manner, it's of little surprise that his approach is as constructive as it is creative." Yet Morrice is also quick to point out that Canada is a much more conservative country. "While we have not rejected this type of association, we prefer to proceed with caution -- paying close attention to what is happening south of the border." In the interim, the Society has pursued cause-related marketing with the pharmaceutical company by developing an easy-to-open Tylenol cap. Widely applauded by The Seniors Council of Canada, The Seniors Packaging Council, TV's Marketplace, those suffering with arthritis and the elderly, the move fares well for a future product association. With their logo now affixed to the new containers, and a series of print ads running in magazines, the accompanying 1-800 information line seems to be doing brisk business.Calculate risks, minimize exposure, plan for spin-control
On the surface, these affiliations seem to be win-win scenarios for all concerned - the organization, the corporation and the public. However, risks need to be calculated, exposure minimized and there must be planning for spin-control. A few pointers: undertake adequate research; proceed only when there is a good corporate fit; products must be thoroughly tested and of the highest quality; and they must also be appropriate. Once you have considered short-term economics vs the long-term gain and the benefits far outweigh the risks, the product association path may well be worth taking. As Riggin said, "The not-for-profits who will thrive in the future are the ones who are innovative and take risks -- and corporate America is waiting to help."
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