1. Marketing for Non-Profit Organizations
Definition of non profit organization
A non-profit organization (also known as an NPO) is an organization that uses its
funding to pursue a specific purpose, such as a charitable cause, rather than
pursuing profits for its own benefit as a for-profit business does. Some might not
believe that investing in marketing strategies is necessary for non-profits, but it is
quite beneficial for an NPO to effectively market itself. Non-profits use marketing
tactics to assist with growth, funding and prosperity. Without these things, the
overall mission of the NPO is diminished.
The marketing of a product or service in which the offer itself is not intended to
make a monetary profit for the marketer.
Benefits for Non-Profit Organizations
Identification
A non-profit organization is a group that raises money or performs deeds for a
specific cause or set of causes. For instance, an organization that uses its revenues
to feed the homeless or educate children is a non-profit. The organization receives
revenue by soliciting donations from the community or selling items to raise money
for the cause.
2. Marketing for Non-Profit Organizations
Purpose
A non-profit does not operate in an effort to build wealth or revenue for the
benefit of the owner, directors or shareholders. The main goal of a non-profit is
to generate funds and volunteer assistance to help further its chosen cause. A
non-profit organization can also act as a publicity vehicle to bring more attention
to an issue in the community.
Benefits
One of the main benefits of running a non-profit organization is that you have an
opportunity to assist the community via funds and volunteer work . Because the
organization is tax-exempt, it does not have to pay taxes on the money it raises.
Additionally, registered non-profits have limited liability under the law when it
comes to debts; the owners and organizers are not personally responsible for
business debts with a few exceptions. Non-profits also have access to
government-sponsored and private grants and loans that for-profit companies
do not. Another benefit of running a non-profit is that, like a standard for-profit
business, it helps create paid jobs.
3. Marketing for Non-Profit Organizations
Difference Between for Profit & Not for Profit Marketing
For Profit Marketing
The objectives of marketing in the for profit environment are usually to let potential customers
in your target market know about your product or service and how it can benefit them, with a
view to selling it in exchange for money. The corporation keeps the money, and the customer
enjoys the product or service he has bought. For profit marketing also focuses on developing
new markets for existing products or identifying markets for new product lines.
Nonprofit Marketing
A nonprofit organization markets the work it does or the cause it supports, instead of a
product or service. The purpose of marketing is to build awareness of an issue and to gain
financial support from the public for its cause. The “customer” gives his money to the
organization in exchange for the opportunity to contribute towards its philanthropic work. As
with for profit marketing, the result is that the corporation keeps the funds, while the
individual retains the knowledge that the organization uses his money to make a difference for
its cause.
Differences
The major difference between the marketing of the two types of corporations is the fulfillment
of the customer need. The for profit marketing customer has a need of his own that he fulfills
by the purchase of the goods or services; the nonprofit “customer” recognizes the need of
others and his ability to help fulfill it through donation of his time, money or service. For this
reason, retail sales of the primary product or service do not apply to the nonprofit corporation.
Many nonprofits do conduct retail sales of promotional items to help raise funds, but this is
not their primary product or service.
4. Marketing for Non-Profit Organizations
Tips for Marketing a Non Profit
Branding
Like any business, philanthropies have no choice but to compete for supporters’
money. The best way to do so is by creating a strong brand. According to ARCH,
a national resource for respite and crisis care centers, in order to best market
the business your company must identify its constituents, design programs to
suit their needs, measure the constituents' satisfaction with their programs, and
use the results to fine tune their program. Once your program is clear, you are
able to present your service--your brand--to potential supporters. One way to
strengthen your brand is to develop a slogan.
Publish Your Message
When selling a message or viewpoint, and not simply a product, communication
is a necessity. Every non-profit should have a newsletter or electronic newsletter
(e-mail) according to Community Driven Institute. By “writing for the general
public or for membership associations or others interested in your work,” in
conjunction with your community distributions, “your written wisdom will not
just go to those who already know you, but to those who do not know you yet.
5. Marketing for Non-Profit Organizations
Public Speaking
One great attribute for your non-profit is a spokesperson. According to Reis, “Ideally,
the founder is the best person to take on this role. He or she has a powerful
connection to the brand and can sell the story to the media, donors, volunteers and
supporters.” Many supporters question how contributions are used. When you
provide them with a person who actively engages with them, answers questions,
shares stories and relates successes, they become immediately involved in who you
are and what you do.
Community Outreach
In the world of community outreach, “consistency is the key to success,”. Determine
the best programs to suit your mission and work on those until they are stable and
you do them every year. People appreciate being able to see how their time and
money are used; and it feels good to see the results of your donation continue year
after year.
An Online Presence
Online accessibility is an important marketing tactic. Create a web page for your non-
profit and build a social media presence. Put your cause out there, writes Network
for Good, “optimize your search engine marketing.” Get as many good links to your
company’s web page as possible and “make sure all your online outreach and
presences enable two-way conversation with your supporters, fans and non-fans
6. Marketing for Non-Profit Organizations
How to Sell Items to Non-Profit Organizations
Identify Your Audience
Not all non-profit organizations are likely customers, so figure out what types of
groups are most likely to need your items. For instance, Independent Sectors says
there are ten major categories of non-profits, including museums, private
educational institutions, environmental groups, health services, international
organizations and religious groups. Also take a look at the type of budget they need
to afford your products and who the decision-makers are.
Get Involved
If you want to sell to local non-profit organizations, volunteer to help the group or
relevant organizations to become familiar with their operations. In addition to the
good that comes from helping a worthy cause, volunteering also gives you a way to
network with people who can refer you to decision makers at the organizations.
Immerse yourself in the non-profit world by reading its publications so you
understand their challenges and mission.
Focus on Benefits
Once you’re ready to introduce your products to a non-profit organization, use lots of
benefit-oriented statements in your promotional materials. Make sure your
brochure, flyers and sales letters explain how your items help make their lives easier
or help solve a problem their group is experiencing. Since buyers at non-profits must
explain how they spend every penny of their money, make it easy for them to make
the case to their board of directors or donors to get approval to buy.
7. Marketing for Non-Profit Organizations
Stand Out
Find ways to make your items stand out from the competitions. If your bottom
line allows it, offer a discount to non-profit groups or provide extra customer
support to help the group implement and use your product. Make it clear how
your intimate knowledge of specific organizations, thanks to your volunteer
efforts or deep research, makes you the best company from which to buy the
products.
Close the Sale
Make sure your sales tactics make it easy for the decision-makers to choose your
product, such as using promotional messages that show you understand and
sympathize with their organization’s goals. Use drip marketing to introduce
them to your products, and then consistently market to them by sending email
marketing messages, postcards and flyers that remind them that you have a
product they need that will help their organization meet its goals.
8. Marketing for Non-Profit Organizations
Eight Basic Steps to Marketing Your Nonprofit Organization
Define your target market, research similar organizations and associations.
Determine the desired outcome of your marketing efforts.
Using the information gathered in Step 1 and 2 develop brochures and marketing
materials that describe the benefits, services, donation opportunities, and
values of your organization.
Develop a social media marketing strategy. Social media such as Twitter and
Facebook can provide you with ways to reach out to those interested in your
organization in a low cost and effective way. Social media works great when it
comes to reaching those who are passionate about causes that individuals hold
dear to their hearts.
Develop and maintain a professional internet marketing presence by creating a
web site. You can use a web site as a great resource to display useful
information, news, monthly newsletters, events, create community, share
alternatives to donating money, and showcase the benefits of your organization.
Research and maintain your prospect and customer databases. Do not let these
resources be wasted. Use them for special mailings, follow-up telephone calls,
event invitations, alliance development, research profiling, and market
segmentation.
9. Marketing for Non-Profit Organizations
Show and advertise the results and objectives that your organization achieves.
You fill find that it is effective to showcase those that are receiving benefits,
inversions, activities, and projects.
Always actively search for alliances with other organizations, commerce,
government, advertising media, and business. This step alone often brings the
most benefit to nonprofit organizations.
