Posts Tagged: Charitable Donations

Should Your Company Engage in Cause Marketing? Here’s What Consumers Think

Cause marketing is good marketing according to a recent study.  

The marketing research firm Toluna conducted a survey of 1,000 U.S. adults and here’s what they had to say:

  • Almost half felt that “it’s a great way to bring attention to different national or global issues.”
  • Over half said their favorite way for companies to engage was to “donate some portion of their revenue to a recognized charity.”
  • The most popular cause was “hunger, homelessness or medical relief” followed closely by “education.”
  • A significant majority favored domestic causes over international causes.
  • Nearly two-thirds said they regularly or sometimes sought out brands that support certain causes.
  • Most said that it does not impact their willingness to purchase if they don’t agree with the cause.
  • But almost half of millennials surveyed would seek out a brand that aligned with a cause they agreed with.
  • Millennials were a little more skeptical of cause marketing, but still 80% were not skeptical.
  • Almost half of the millennials surveyed said they would spend time researching brands to see what causes they support and would be willing to pay more for these products. And 30% would even sacrifice quality for a good cause.

Once again, the surveys show that cause marketing should be a critical part of a brand’s activities.  And according to this survey, any cause marketing is worthwhile, but apparently the best thing to do is target millennials, use your revenue to make donations, support hunger, homelessness or medical relief when possible, stay domestic, and let the public know what you’re doing.

 

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The Three Dirty Words A Company Involved in Cause Marketing Doesn’t Want to Hear

George Carlin had seven dirty words.  Spongebob Squarepants had 13 bad words (7 regular/6 sailor).  And New York State has 6,942 dirty words that can’t be used on vanity plates.  But commercial co-venturers should be aware of three dirty words: Professional Fundraiser, Professional Solicitor, and Fundraising Counsel, because if your cause marketing campaign drifts into these areas, you may want to scream another dirty word.

These categories are treated differently from commercial co-venturers under charitable solicitation laws because these people get paid for their fundraising activities and therefore, the state regulators are more cautious and have imposed much more stringent registration, bonding and reporting requirements.  (more…)

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Guidance From Commercial Co-Venture Caselaw: A Unicorn of a Topic

There are not many court decisions concerning commercial co-ventures.  In fact, there are perhaps five.  This is far less than the number of decisions involving unicorns (seriously).  Nevertheless, these few court decisions provide some guidance on how a court may look at claims involving alleged violation of commercial co-venture laws.  Let’s take a look:

Attorney General v. Bach, 81 Mass. App. Ct. 1126 (2012):  Company sold tickets to a “show house” with proceeds to go to charity.  No contract with charity.  No registration (note: MA).  Show not a big hit.  Company went under.  Unknown if donation actually made.  Two years later, MA attorney general brought action against the owner personally.   Court found owner violated CCV laws.  Permanent injunction issued precluding owner from failing to comply with the act. (more…)

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Giving Tuesday: An Opportunity to Market for a Cause

I’ll admit that I’ve been part of the people lining up in the wee hours of the morning waiting for the doors to open on Black Friday. I even (temporarily) lost my young son once even though I specifically instructed him to run toward the tv’s. Luckily, my wife chose to chase him as he ran to the video games, and it ended up a win-win when I got myself a huge flat screen at a great price. But I digress.

As you may or may not know, in 2012, to compete with the commercialism of Black Friday, Small Business Saturday and Cyber Monday, the NY 92nd Street Y teamed up with the United Nations Foundation to create #Giving Tuesday.

During the first year more than $10 million in online donations were processed and by 2015 this number increased to approximately $116 million. These numbers are pretty impressive given that according to a 2015 survey, only 18% of consumers were familiar with Giving Tuesday. While this new holiday has been specifically geared toward the charity’s online solicitation efforts, it appears to be an ideal vehicle for corporate giving through cause marketing campaigns. The statistics bear this out: (more…)

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I Wanna Help: Cause Marketing for Tragedies

A good brand’s reaction to any human tragedy is to try to find a way to help. Most recently, we have seen an outpouring of support for the Orlando victims, and we can recall the many millions of dollars raised for Katrina, Haiti, Sandy Hook, 9/11, among, unfortunately, many other devastating events.

Cause marketing may not be the most accurate term to describe a brand’s efforts to pitch in, but since these efforts can arguably come under this penumbra, here are a number of non-exclusive charitable ways a brand can support the victims of horrendous natural or man-made events. (more…)

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“All Profits to Charity” – How Much is That? A Brief Commercial Co-venture Lesson

You’ve heard this sales pitch before. Its cousins are “A percentage of proceeds to charity” and “A portion of the proceeds to charity”. Do you really know how much will be donated? The short answer is no. I’ve read estimates that net profits on a pizza pie are typically 4% to 8%, on new cars around 1-2%, and in the clothing industry profit margins range from 4% to 13%.  The Wall Street Journal has reported that McDonald’s makes 6 cents on a one-dollar hamburger. So if a brand tells you it’s giving “all of its profits to charity,” you need to know where’s the beef. (more…)

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