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PRWeek/PainePR Survey Reveals That Nonprofit/Cause-Marketing Forecast is Bright: Nonprofits Report Ramp-Up in Corporate Support and Predict 17 Percent Increase for Coming Year

PRWeek/PainePR Survey Reveals That Nonprofit/Cause-Marketing Forecast is Bright: Nonprofits Report Ramp-Up in Corporate Support and Predict 17 Percent Increase for Coming Year

Published 10-27-04

Submitted by PainePR

NEW YORK - PRWeek, the leading trade publication for the public relations (PR) industry, along with PainePR, an award-winning national public relations agency, today announces the results of the PRWeek/PainePR Survey on Maximizing Cause-Related Relationships. Created to shed light on the growing number of corporations who are using cause-related programs as an integral part of their business approach, the survey reveals how, according to nonprofits, corporations can maximize these partnerships to create long-term, and successful campaigns. Additionally, findings reveal a recent upswing in corporate support of nonprofits and a healthy outlook for future corporate giving.

While a majority of nonprofit respondents (77 percent) report they've seen little or only a modest increase in corporate support since the 9/11 tragedy, the picture brightens considerably when respondents were asked about what they've observed more recently, notably this past year. Sixty-one percent of respondents say that they've seen increased interest in supporting nonprofit causes from corporations, and more than half (52 percent) report that this interest is translating into financial support.

Furthermore, optimism for the coming year is very high among nonprofit executives across the board. Their responses - a nonprofit/cause-marketing forecast - predict not only that the level of corporate investment will increase over the next 12 months, but also that, on average, they expect it to increase by 17 percent.

"It's great to see increased interest in social responsibility activities and funding, but the one thing we've learned in the 20 years we've engaged in cause-related programs for clients is that success is far from guaranteed. Corporations and nonprofits are a little like cats and dogs. They get along very well in the right circumstances and not so well in others," said David Paine, CEO of PainePR and President of nonprofit group One Day's Pay.

"Unfortunately, differences in perspective and objective create barriers to cooperation that ultimately hinder the ability of nonprofits to attract the funding they need to accomplish their objectives in some instances, and the ability of corporations to achieve the ROI they demand. We hope to use the findings of this and future surveys to help companies and nonprofits better understand each other and optimize their relationships for the mutual benefit of both parties and the important societal causes being served."

Nonprofits Reveal What Makes Corporate Partnerships Work for Everyone's Benefit When it comes to driving corporate investment in social responsibility programming, nonprofits say their own marketing efforts are the most important factor (75.1 percent), followed by press attention to relevant issues (56 percent), and individual business performance (53 percent). Respondents also overwhelming say that corporations expect more for their partnership investment than a year ago (75.2 percent), and that partnership opportunities with other sponsors (67.4 percent) and increased sales (47.6) are the two biggest reasons corporations should lend support to their organizations.

"When appropriately initiated and well-managed, cause-related partnerships benefit all involved," said Julia Hood, editor in chief, PRWeek. "After surveying seasoned, senior decision makers in the nonprofit industry, we were able to capture some incredibly valuable key learnings that can benefit corporations and nonprofits alike. Exploring these issues allowed us to develop tips and parameters that corporations and nonprofits can follow in developing future cause-related campaigns." Key findings from the PRWeek/PainePR survey resulted in the following tips for corporations and nonprofits to follow to develop successful cause-related programs:

  • Recognize and Embrace Differences. The PRWeek/PainePR survey confirms that corporations and nonprofits do in fact speak different languages, especially when it comes to what the return on investment should be for both parties. The first step to a successful working relationship is to recognize this. To prevent miscommunication, be clear with goals, priorities and activities.

  • Maximize PR Opportunities. The PRWeek/PainePR survey findings indicate that PR is the number-one way that nonprofits demonstrate the value of a cause-related partnership to the corporation. With this in mind, explore all possible PR opportunities - from hiring third-party spokespeople to conducting a newsworthy survey - for your campaign.

  • Be Realistic About Expectations. More than 75 percent of nonprofits reveal that corporations expect more value for their sponsorship than one year ago. When the relationship first starts, both parties need to outline in writing their value expectations.

  • Consider the Impact of Size on Available Resources. Not all nonprofits are created equal - especially when it comes to total revenue and staff capacity - so it is important to consider the organization's size when working with them. For instance, a nonprofit with revenue of under $1 million a year may not have the same resources - such as PR support - readily available to support a cause-related initiative.

  • Know Why Relationships Don't Work. When a partnership fails, it is usually for mutual reasons, the primary one being when both sides underutilize PR opportunities (according to 58 percent of respondents), closely followed by corporate partners having unrealistic expectations of how the partnership will benefit its business goals (according to 53 percent of respondents). Other top reasons include: the corporate partner or the nonprofit not fully understanding or supporting each other's goals, and the corporate partner putting too many demands on the nonprofit staff's time.

  • Adapt to an Increasingly Competitive Market. With an expected increase in corporate support for nonprofits in the immediate future, it will be all that more important for corporations to make their organization and sponsorship packages stand out. Nonprofits might never deny participation, but in order to land that coveted title sponsorship, be prepared to get creative with how to maximize the partnership through PR initiatives.

  • Clarify Your Introductory Approach. Consider who will make the first move, keeping in mind that the first point of contact is critical to first impressions. Eighty-two percent of nonprofits actually approach corporations for support. Approximately 30 percent report that public relations agencies on either side make the introductions, and approximately 25 percent report that corporations approach them directly.

    In other findings, respondents most frequently cite Microsoft as among the corporations they most admire for support of nonprofits and that they also would most like as a donor. Other corporations admired for their support of nonprofits include American Express, General Electric, Ben & Jerry's, Coca-Cola, Ford, Nike, Procter & Gamble, Target, and Wells Fargo Bank. Among corporations on the nonprofit "wish list" for support include all of the admired corporations in addition to Home Depot, MasterCard, Monsanto, Nextel, Sears and Wal-Mart.

    This survey was conducted for PRWeek by Impulse Research Group, a full-service public opinion and marketing research firm, and was sponsored by PainePR. Interviews were conducted among 106 nonprofit executives from September 1 to October 8, 2004. The margin of error is +/- nine percent at the 95 percent confidence level.

    About PRWeek
    Launched in the United States on November 16, 1998, PRWeek is the first weekly magazine to offer nationwide coverage of the public relations business. It carries the latest news, in-depth analysis, top columnists, and reviews of campaigns - plus the best selection of job opportunities for PR professionals across the United States. And using the resources of our long established UK edition, PRWeek also provides strong coverage of the European and international public relations business.

    Based in New York, the magazine has a 28-strong staff, including full-time correspondents based in Washington D.C., San Francisco and Chicago. Its aim is to provide essential weekly reading for every U.S. public relations professional and to champion the cause of public relations as an essential management discipline in the business community at large.

    About PainePR
    Established in 1986, PainePR, a member of the Cossette Communications Group (TSX: KOS.SV), is one of the U.S.'s top mid-sized public relations agencies with gross income of approximately US$9 million. A leader in U.S. consumer and business-to-business marketing, PainePR, which was rated number one more than 40 national firms in client service excellence by the 2003 Thomas L. Harris/Impulse Research Client Survey Study, offers clients signature strategic services in national media relations, product and service marketing, corporate social responsibility, cause-related marketing, influencer strategy, buzz-marketing, ePR/online communications, diversity/Hispanic marketing, crisis communications, organizational communications and change management, among other services.

    PainePR represents blue-chip clients in diverse industry categories, such as technology, healthcare, financial services, consumer products/services and business-to-business services. PainePR's clients include: American Suzuki Motor Corporation, Archer Daniel Midland Company, Beckman Coulter, DIRECTV, Ernst & Young, Duracell, Hilton Garden Inn, JP Morgan Chase, Kellogg's Kashi Company, Levi Strauss & Company's Dockers brand, Novartis, Polaroid, Procter & Gamble (Pampers, Old Spice, Ivory, Metamucil and Zest), Toshiba America Medical Systems, Toshiba America Business Solutions, Unilever, and other well-known U.S. clients.

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