'Tis the season for holiday appeals, not only through the mail and on the phone, but increasingly in product marketing and donation requests at the checkout. What's the best way to help? And what's in the fine print? Michelle Shumate is a professor of communication who studies nonprofit organizations and fundraising, with a particular interest in corporate-nonprofit partnerships, and the growing trend of cause-marketing. Shumate was interviewed by News Bureau social sciences editor Craig Chamberlain.
So what motivates people to give?
Most research suggests that people give primarily because they feel empathy. About 90 percent of donors are "emotional givers," which means they make contributions in reaction to a felt need. Fundraising helps make people aware of social issues and triggers their empathy. Most donors won't seek out a nonprofit organization in order to donate; they have to be asked.
What should we keep in mind when considering causes and how to support them?
I encourage people to be more strategic about their giving. Nonprofits can do a lot more with a few large donations than if they have to raise the same amount of money via numerous smaller donations. If a donor wants to have maximum impact, they should research and choose no more than a few nonprofit organizations that do great work and which seem to run their organization effectively, and make regular larger contributions. Also keep in mind that many nonprofits are facing a significant decrease in funding from government sources and foundations, so individual donors are more important than ever.
Partnerships between corporations and nonprofits are on the rise, including cause-marketing campaigns that tie together a product or service and a cause. Why the trend?
There are a number of factors driving the increase in these partnerships. For corporations, marketing research suggests that the vast majority of Americans have a more positive image of companies that support a cause and that some consumers, especially young adults, are more likely to purchase a product associated with a cause. For nonprofits, these partnerships open up new revenue streams and they can provide a route for broader exposure than they could achieve through other means. Some estimates suggest that about $4 billion is raised via cause-marketing on an annual basis.
So I can buy something I want and at the same time do good for a cause I believe in. What's the downside?
Critics are concerned because they think that cause-marketing might lead people to believe that nonprofits don't need regular donations and because some cause-marketing campaigns do not offer very much money to nonprofit organizations. Such concerns arise when only a small fraction of profits are given to the nonprofit organization or there are low caps on the total amount that the company will give. Sometimes consumers are unaware of either of these.
What's a good example of a campaign done right, with a large benefit for the nonprofit? And what about one you think was more questionable?
I am a fan of Campbell's Soup Co.'s partnership with the American Heart Association. Campbell's pledged to give the American Heart Association $1.8 million over three years. However, in talking with the American Heart Association, the biggest benefit was the amount of exposure Campbell's allowed the Go Red for Women Campaign to get. More women learned about their risk for heart disease and stroke because of Campbell's publicity efforts.
I am less of a fan of the KFC and Susan G. Komen Buckets for the Cure marketing. While there were some of the same benefits, including raising $4.2 million dollars and raising awareness about breast cancer, I have some concerns about how appropriate the product/cause match was. While consumers could have chosen to fill their bucket with grilled chicken, they could also have opted for the deep-fried extra-crispy chicken. Obesity and the consumption of such high-calorie, high-fat foods are linked to an increased risk of breast cancer. Other consumer watch-dog groups raised concerns about Susan G. Komen supporting a fast-food restaurant choice that is predominately located in low-income neighborhoods where there are fewer healthy, affordable options available.
Those donation requests at the store checkout can often be annoying, or make us feel like Scrooge when we turn them down. But are they effective?
Giving at the checkout, sometimes called embedded giving, has some benefits. Charities raise money, it reminds people about the cause, and it encourages people to at least think about giving. However, some people worry about donor fatigue, or donors tuning out any messages about giving because they have been bombarded with them. There is such a thing as too many solicitations to give to a particular charity.
What can we do to support a cause if we're short on funds?
Volunteering is a great alternative. In the midst of these difficult economic times for many people, there has been a significant increase in the number of people volunteering. The organization Independent Sector estimates the value of volunteer time at about $21 per hour, so giving a few hours of your day to a nonprofit is worth more than many people think.