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Nonprofits are Getting Hit Hard

“One-third of Bay Area nonprofits are worried they may have to shut their doors by the end ofthe year, while 34 percent report they have two or fewer months of operating expenses in reserve.”

2009 survey by the United Way of the Bay Area

Nonprofits are Getting Hit Hard

7,093 nonprofits in San Francisco

1,730 nonprofits in Marin1,500 nonprofits in Sonoma

1,000 to 3,000 could go under

Marin, Sonoma and Napa Nonprofit Survey

• 200 Nonprofits• Executive Director • and/or Fund Development

Marin, Sonoma and Napa Nonprofit Survey

Employees1-5 48.7%6-10 7.7%11-20 15.4%More than 20 12.8%More than 50 15.4%

Full-time Development Staff Position

Yes 34%

No 66%

Marketing/Communications

Staff PositionYes 20%

No 80%

What Nonprofits said in Survey

• Need to find new donors• Need to find sponsors for events • Need to increase corporate donations • Government and foundation grants

have been cut severely. • Not enough budget to hire staff for

development and marketing

Do you have Corporate Partnerships?

Yes 12%

No 88%

Free Copy of Survey at www.bruceburtch.com

The Truth

Nonprofits need to expand their own capabilities of developing new funding.

Did You Know?

92% of the public have a more positive image of a company that supports a cause they care about

87% of the public are likely to switch from one product or service to another (price and quality being equal) if the other product or service is associated with a good cause

87% of employees in companies doing cause marketing feel a strong sense of loyalty to them

Did You Know?

According to The Haas School of Business at UC Berkeley, “Cause marketing is the fastest growing form of sponsorship in North America.”

Why is Cause Marketing So Effective?

• It leverages the marketing clout and connections of two or more organizations

• It focuses on doing good and the public responds very well to organizations doing good

• It draws media attention… for free• It delivers what one can’t do alone

Where to Start?

• Change your mindset about working with a for-profit: It’s all about what you can do for them!

• You are not seeking a donation, you are seeking a long-term partner

What Do You Want to Do?

Identify your marketing objectives:

a) Raise funding for a particular programb) Generate awareness of your servicesc) Attract new volunteers and other supportd) Build a new building/program center

What Do You Have to Offer?

Analyze what you bring to the partnership:

a) A cause/need that can excite the public

b) Media relationshipsc) Staff/Board supportd) Donor/support base to tape) Pro Bono PR/Ad Agency

Develop a Partnership Proposal

• Show why your marketing objectives match theirs

• Show what you have can help them achieve what they need

• Show what they have can help you achieve what you need

• Timeline

How to Approach a Potential Partner

• Identify your top few potential partners• Identify CEO, COO, CMO, VP, Board Member• Ideally, find a connection person: your board,

staff, donor, media, volunteer• Do not make a cold call, if at all possible • Set up a three-way meeting: your ED/CEO,

your connection, your target partner• Worse case: send a short letter pitching a

partnership, why it makes sense for them, and ask for a meeting

Ask These Questions

• Does this partnership make sense?• Does the brand and messaging

reflect favorably on all the partners? • Will the partnership messaging and

campaign alienate people from purpose of the campaign?

• Can we work at the CEO level?

Three Phases of Partnership

• An in-kind gift or donation• Progressing to the realization that

there is more that could be accomplished in such a relationship and thus the exploration toward a deeper commitment to each other's goals

• Finally, proactively integrating each partner into the marketing and business mind and culture of the other.

Create a Greater Good

Photo by Gene Dailey

Bruce W. Burtch, Inc.

The Cause Marketing Catalystwww.bruceburtch.com

415-454-0839