The NonProfit Times - The Leading Business Publication For Nonprofit Management

Despite the ailing U.S. economy, companies in North America are expected to spend $1.55 billion on cause partnerships during 2009, a 2.2 percent increase from the $1.52 billion invested in those programs during 2008, according to Chicago-based IEG, LLC. The amount spent in 2007 was $1.44 billion, according to IEG.

Cause-related programs still remain popular among corporate marketers due to their ability to support worthwhile organizations while also driving sales.

In fact, some nonprofits that deal with poverty, hunger and other issues directly impacted by the economy have found increased corporate interest. “Recent research has shown that consumers expect corporations to increase their support of causes in this economy,” said Dan Kowitz, vice president of IEG Sponsorship Consulting.

For example, anti-hunger organization Share Our Strength has posted a roughly 15 percent increase in revenue from cause marketing programs during the past year, signing new deals with AT&T, Inc., Hickory Farms, Inc. and others.

Among other recent deals, juice and apple sauce marketer Mott’s LLP this year partnered with Susan G. Komen for the Cure and Feeding America to launch national cause-marketing programs. The company is leveraging the Komen partnership with the Pink to the Core campaign, which features limited edition packaging. It is working with Feeding America on the Wake Up with Mott’s and Marcia Cross program, around which consumers can make a donation by sending a pre-recorded telephone message about the need to fight hunger from the actress to family and friends.

For each call, Mott’s donates $1 to the nonprofit, with a cap of $134,000 -- the cost of feeding one million people.

Companies also are increasingly leveraging sports and other types of sponsorships to promote their nonprofit partners. For example, Farmers Group, Inc., is using its new tie to the WNBA Los Angeles Sparks to promote its longstanding partnership with the March of Dimes. The insurer is activating the tie with the We Assist You Assist promotion that asks consumers to pledge a donation tied to the number of assists the team makes throughout the season. Farmers Group will match the total raised from fans.

Further demonstrating the popularity of cause sponsorship, causes trail only sports properties and entertainment tours and attractions when it comes to spending by property type, according to IEG.

Leveraging those gifts is vital. For example, Reading is Fundamental (RIF) received almost 80 percent of its private funds from corporate entities during the past three years. While having corporate funders is great, the Washington, D.C.-based organization shared how it’s leveraging those company relationships to leverage individual giving.

Laura Goodman, strategist and practice leader at Chicago-based Social Capital Partnerships, and Lynn Croneberger, vice president of development at RIF, explained why engaging corporate employees could help your organization at the recent Bridge to Integrated Marketing & Fundraising Conference, in National Harbor, Md. Here are their thoughts:

Sponsorship shifts. Nonprofits should foster relationships with companies beyond sponsoring a golf tournament or other event. That relationship will grow from event driven to cause marketing. Hopefully the affiliation will reach philanthropic marketing, where the company and nonprofit work together to build a strong philanthropic culture between the two.
Employee mindset changes. First a company will encourage event participation, such as a walkathon. Then employees might want to volunteer.
Cultivate those volunteers to become activists and donors to the organization by creating relationships separate from their workplace.
Individual giving. According to Giving USA, individual giving takes the lion’s share of donations -- 75 percent. Compare that to the 5 percent of giving corporations contribute to overall giving and you can see why the power is in the people.
Acquisition. Finding new people to add to your list is getting harder by the day. Working with a company will give you access to people who might not have engaged with your organization on their own.
Leverage the company’s money. A partnership between Nestle USA and RIF averages approximately $200,000 per year -- half employee giving and half corporate match. See if your partnering company will make a match to encourage employees to give.