Fundraising is all about relationship management isn’t it? Yet a recent report in the Financial Review quoting Sweeney Research’s sports report on Australian companies’ donations to the sporting world showed a very low recognition recall for sponsorship and sports events.
Could the same be true for corporate sponsorship of charitable and nonprofit causes? Perhaps arts events have pitched the corporate relationship better than others in the nonprofit sector?
Apparently a recognition rate of around 20 – 25% is considered acceptable in terms of awareness. And companies are often using sponsorship to spin off other relationships, rather than depending on broad public recognition.
As the field becomes increasingly complex with corporate social responsibility, social ventures and philanthropic and other gifting, relationship management may take on new dimensions.
Filed under: fundraising, nonprofit, philanthropy | Tagged: Arts, Relationship Management, Social Ventures, Sport
Sustainable fundraising success is reliant on cultivating relationships between donor and cause or npo.
Corporate giving is rarely philanthropic and sponsorship today is a niche marketing tool that must compete with other marketing tactics for corporate resources. As such sponsorship of npo’s outside of the arts or sports where marketing benefits can be valued is increasingly uncommon. Because sponsorship and csr for that matter are marketing driven, the relationship between cause/npo and corporate benefactor is a difficult one to cultivate. The relationship is almost entirely based on the ability of the cause/npo to deliver tangible benefits. Once that ability dries up the relationship will also decline and along with it the corporate support.
Maintaining relationships in the corporate sector is vital though for the nfp’s as the company will have several troughs from which it can draw resources. Payroll deductions from staff (matching corporate gifts), Board members and senior execs for volunteers, staff for volunteers and advocates, customers and suppliers for cause related marketing initiatives as well as other informal and internal programs.
Relationship management has been made so much easier with Web 2.0 technologies though few NPO’s other than the environmental and human rights advocacy sector are using it to benefit.
My professional challenge has always been the term ‘relationship’ which I reserve for those I love and care for. No matter how passionate I am for the causes I support I struggle with the concept of thinking I want a relationship with them. For most donors who make many charitable gifts each year, usually in response to being asked to support, again I wonder if relationship is the best way to describe it.
I also don’t want a relationship with my bank, fuel supplier or grocery shop.
The whole crm (customer relationship management) movement seeks to commodify my past and likely future transactions with a company. I think in the nfp sector we need another term that recognises the value of a supporter and their long term connection with a cause.
Then again, maybe with another week to dilute the Christmas commercialism from my mind, and a week of holidays immersed in those relationships that matter, some respite into crm and csr could be welcome.
What term would you use Craige?
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