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More Charities Than Ever Use Cause Related Marketing to Raise Funds

More Charities Than Ever Use Cause Related Marketing to Raise Funds

Published 10-13-04

Submitted by Business in the Community

Research announced by Business in the Community has discovered that
charities are increasingly using Cause Related Marketing to achieve their fundraising targets and 22% of the Corporate Fundraisers questioned thought that Cause Related Marketing was vital to their fundraising strategies. Reaping the Benefits (2004) also found that 80% believe that Cause Related Marketing has increased in importance for raising funds over the last two years.

The annual measurement of the Cause Related Marketing, The Business in the Community Cause Related Marketing Tracker 2003 reinforces the fundraising potential of Cause Related Marketing. It discovered that more money was raised and given to charities and good causes by businesses through Cause Related Marketing programmes for the third year running. It found that a staggering £58.2 million was raised for charities and good causes through Cause Related Marketing programmes during 2003, an increase of over 15% on 2002.

This figure, which includes over £24 million of leveraged funds through staff, customer and supplier fundraising, was raised by only 67 businesses through 82 Cause Related Marketing programmes. In total, 64 charities and good causes benefited through these Cause Related Marketing programmes.

Cause Related Marketing is not however limited to just raising funds. In the Reaping the Benefits survey, Corporate Fundraisers stated that Cause Related Marketing programmes also helped to increase understanding and in communicating key messages as well as building and enhancing the brand.

Charities will be encouraged to know that Reaping Benefits also found they are not alone in seeking a partner. Cause Related Marketing is a partnership based on mutual benefits and the research discovered that businesses are also proactively approaching charity partners, with almost half of the respondents asked saying they had been approached by businesses. 45% of Corporate Fundraisers developed a Cause Related Marketing programme from an existing relationship with a business partner, which offers charities potential to leverage more from their corporate partners.

The forthcoming Building Business through Partnerships conference on 3 November is the first event of its kind from Business in the Community and will be focussing on how businesses and charities can get more value and impact from their partnerships. Exclusive consumer research will be announced to further build the business case for Cause Related Marketing and insights into successful charity of the year partnerships, best practice in employee volunteering and payroll giving and innovations in Cause Related Marketing will be featured.

Mallen Baker, Development Director, Business in the Community, "There is clearly potential for charities to use Cause Related Marketing as a technique to raise funds as well as to leverage more from existing corporate partnerships. The findings of both Reaping the Rewards and the CRM Tracker 2003 show that businesses are increasingly using the power of their brands to generate significant funds and resources for charities and good causes through CRM programmes. The Building Business through Partnerships conference will illustrate how strategic partnerships can have even more positive impact."

Notes for Editors
1. Reaping the Benefits (2004) is based on responses from 69 charity fundraisers that attended the Business in the Community Celebrating Success evening reception in July 2004.

  • Respondents believed Cause Related Marketing was best able to help them raise funds, but it also helped to promote understanding and communicating new messages.

    The top five answers: [Position in Reaping Benefits (2002) shown in brackets]
    1. Raise funds (1)
    2. Promote understanding and communicate new messages (4)
    3. Build and enhance brand (3)
    4. Raise awareness (2)
    5. Leverage existing corporate partnerships (5)
    5. Encourage new volunteers and supporters (-)*
    *not listed in top five in 2002

  • Corporate fundraisers are increasingly integrating CRM into their core fundraising strategies. The research reveals that its use will continue to increase in the future.
  • 96% of respondents said that Cause Related Marketing was important to their fundraising objectives, up from 80% in 2002. Nearly 22% said it was vital.
  • 81% believed that the importance of Cause Related Marketing for achieving their fundraising objectives has increased over the last 2-3 years.
  • 93% believed that Cause Related Marketing will increase in importance in achieving their fundraising objectives over the next 2-3 years. This is compared to 84% in 2002.

    2. Summary of the key findings of the Business in the Community Cause Related Marketing Tracker 2003

  • £58.2 million was raised by 67 businesses benefiting 60 charities and 4 good causes through 82 Cause Related Marketing programmes.
  • £24million of the total amount was leveraged funds through staff, customer and supplier fundraising.
  • Over £16 million worth of gifts in kind were given as part of 24 of
    these CRM programmes, this includes leveraged gifts in kind from.
  • Over £10 million worth of staff time was devoted by 11 of these CRM
    programmes.
  • The total value of leveraged funds has grown from £4.3 million in 2001 to almost £24 million during 2003.
  • In 2003 over £25.5 million was raised for health charities through
    CRM whereby in 2001 this value was £4.4 million.

    In 2003, the top causes to benefit from Cause Related Marketing were:
    (The figure shown in the brackets is the position they held in 2002)
    1. Health (1)
    2. Development (9)
    3. Children (3)
    4. Education (2)
    5. Household poverty (-)

    In 2003, the top charities to benefit from Cause Related Marketing were:
    1. Cancer Research UK
    2. Comic Relief
    3. Breakthrough Breast Cancer
    4. Breast Cancer Care
    5. Barnardos

    3. Business in the Community

  • Business in the Community is a unique movement in the UK of over 700 member companies, with a further 1600 participating in our programmes and campaigns. We operate through a network of 98 local business-led partnerships, as well as working with 45 global partners.
  • Our purpose is to inspire, challenge, engage and support business in continually improving its positive impact on society.
  • Membership of Business in the Community is a commitment to action and to the continual improvement of a company's impact on society.

    Our members commit to:

  • Integrate, manage and measure responsible business practice throughout their business
  • Impact through collaborative action to tackle disadvantage
  • Inspire, innovate and lead by sharing learning and experience

    Further information about Business in the Community can be found at the website www.bitc.org.uk.

    4. Cause Related Marketing is defined by Business in the Community as "a commercial activity by which businesses and charities or causes form a partnership with each other to market an image, product or service for mutual benefit". It is an additional tool for addressing the social issues of the day through providing resources and funding whilst at the same time addressing business marketing objectives.

    5. The Business in the Community Cause Related Marketing Guidelines were first launched in 1998. The Guidelines aim to help ensure the quality and integrity of partnerships between businesses and charities or causes and focus on The Key Principles that must underlie any CRM partnership or programme and The Key Elements in the process that should be followed. These Guidelines provide guidance and support for organisations striving towards excellence in Cause Related Marketing.

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