Supporting A Charity Can Make Good Business Sense: "Cause Marketing" For The Rest Of Us

“Cause Marketing” is not a new concept. For years, large companies such as American Express, General Mills, and Home Depot have linked themselves with certain charities or social causes and raised funds through promotions or sales of special merchandise. You may have seen Nike’s recent affiliation with the Lance Armstrong Foundation. They sell “LiveStrong” wristbands to raise money for cancer research.

An article by Colleen DeBaise in the April 30 edition of The Wall Street Journal discussed this trend among franchisers, many of whom are finding that the promotion of a cause at the national level can help to promote and unite their franchisees in their respective local markets. The author quotes David Hessekiel, president of Cause Marketing Forum Inc., a firm that connects businesses with non-profit organizations, “It’s increasingly popular among franchise organizations who are trying to penetrate local markets, who are trying to bond with their franchisees and who are trying to help franchisees to attract and retain employees.”

The trend is growing. What was single digit percentage growth in 2003 and 2004 has increased to 18% and 20% growith in 2005 and 2006. Consumers are reacting positively to cause alliances, and non-profits are certainly happy to have support from the business community. Business executives find that Cause Marketing can help to set their business apart from the others.

Here are some interesting statistics from BrandWeek, Good Things Come to Brands That Give:

• 57% of consumers said they are more loyal to socially responsible companies.
  
• 52% are more likely to talk to friends and family about those corporations, products and services.
  
• 38% are willing to pay extra.
  
• 35% are more likely to buy stock in those firms.
 

If “Cause Marketing” works for large corporations and national franchises, it could sure work for small and home-based businesses, and it doesn’t have to cost a fortune. One major caveat: don’t just do it for the good of your business. If you’re heart’s not in it, you could be perceived as a fake or—worse—as a scavenger who is just taking advantage of those in need. Find something you believe in and figure out a way to creatively align your business with it. While helping with an occasional fund-raising event is good, what we’re talking about in this article is an ongoing effort to identify and support a specific charity or cause so that your business becomes associated in people’s minds with that charity or cause.
Writing on Small Business Branding for WebBizIdeas, Danielle wrote on April 21, 2007:

Supporting a cause can:
1. Add another dimension to your brand’s personality,
2. Trigger new ideas that will enhance your brand,
3. Attract favourable publicity for your business, and
4. Add more meaning for you.

In general, there are some considerations to keep in mind:

Be clear how much of the income from targeted sales or events will be donated and exactly what it will be used for. Then give what you said you would.

Once you’ve selected a charity or cause, support it consistently and bring it up in your advertising, newsletters, and press releases.

Pick a cause that is appropriate for your business—if you produce handmade fudge, you may not want to select Diabetes Research for your charity. A garden center could provide landscaping for small areas around a hospital or nursing home. A fitness center could align itself with all kinds of healthcare organizations. Allison Toner, in her article entitled “Social Responsibility: Can You Make A Difference?” on the FlyingSolo Website writes,

If a solo personal trainer donated to the Red Cross, he wouldn’t notice as much brand reinforcing growth as if he were to hold free fitness session at a local park once a week for people with illnesses. If a proof reader volunteers at a food bank every month, she wouldn’t notice as much brand reinforcing growth as if she volunteered to teach reading to kids with special needs.

Make sure that the way you operate your business is in synch with the cause you are supporting. The article reference above uses the example of a company without a good internal policy for parents to take time off when their children are sick – that company might not want to choose pediatric disease research for its charity

So how might this kind of alignment with a charity or cause “look like” in your business activities? Here are some ideas:

• Forge a relationship with the charity you have chosen – get to know their local chapter and executive director. They will help you think of cost-effective and creative ways to help.
  
  
• Keep your charity’s literature on display in your place of business and ask them to keep your business literature on display in their office too.
  
  
• Promote your charity on your website and in your newsletter. Consider including them in your e-mail signature.
  
  
• Keep a donation jar in a conspicuous but safe place on your counter.
  
  
• Pledge to give a certain amount of percentage of your profits to the charity – either on an ongoing basis or for a certain period of time or for a certain event.
  
  
• Invite the charity to have a fund-raiser at your home or place of business – provide refreshments and promotional help.
  
  
• Sponsor an event in which participants are encouraged to raise money from family and friends. Walk-a-thons are popular for this kind of event.
  
  
• Join with other businesses to promote the cause.
  
  
• Bring in a celebrity to get people to your place of business and support the charity.
  If you have branded T-shirts, clothing, or other advertising specialties, consider ways that you can add the name of your charity to your business name the next time you place an order.
  
  
• Support more than one charity at a time—underwrite a musical or theatrical event to raise money for your charity. The event will promote the arts and the net profits will support your designated charity.
  
  
• Volunteer your own time at the charity – your presence will be noted and add to the association of that group with your business.
  
  
• Do pro bono work by offering your skill or service to your charity or cause.

If you’re at a loss for a charity or cause that “feels” right, check with your local Community Foundation. They are dedicated to putting potential donors in touch with those non-profit groups working to meet local needs. They will be able to tell you what the areas of greatest need are in your specific community.