Profits for nonprofits: find a corporate partner

Area of Science:

• Marketing
• Nonprofit Management
• Corporate Social Responsibility

Background:

• Cause-related marketing campaigns can damage nonprofit credibility if corporate practices conflict with the nonprofit's mission.
• Nonprofits require revenue, while corporations seek enhanced image and increased profits through partnerships.

Purpose of the Study:

• To guide nonprofit managers in forming successful cause-related marketing alliances with for-profit organizations.
• To highlight the mutual benefits of strategic partnerships between nonprofits and corporations.

Main Methods:

• Analyzing successful cause-related marketing partnerships, such as American Express and Share Our Strength.
• Recommending a strategic approach for nonprofits to assess their value and identify suitable corporate partners.
• Emphasizing the importance of active involvement in shaping and monitoring partnerships.

Main Results:

• Strategic partnerships can provide nonprofits with crucial revenue streams.
• Corporations benefit from enhanced brand image and increased profitability through cause-related marketing.
• The Charge Against Hunger program generated over $16 million for Share Our Strength while boosting American Express transactions.

Conclusions:

• Nonprofits should approach cause-related marketing as strategic partners to mitigate risks and maximize rewards.
• Successful alliances require nonprofits to assess their value proposition and actively manage the partnership.
• Thoughtful collaboration benefits both nonprofit organizations and their corporate partners.