In a sense, yes. Read on …
My initial headline for this post was What a For-Profit can Teach a Nonprofit About Planned Giving? There is much to be learned between the for profit sector and the nonprofit sector when it comes to ideas concerning sustainability, workspace communication, connecting on a deeper level, focusing on relationships and not transactions, knowing thy customer, etc.
Do for-profits copy nonprofits? Often. Does the nonprofit sector copy the for-profit sector? Not often enough.
We’re Being Challenged
After more than 20 years in the Planned Giving environment, we’ve met some of the most successful fundraisers in the nonprofit industry. Yet even after all this time, we’re hearing from contemporaries in the for-profit world who are challenging many of the nonprofit industry’s approaches.
This blog explains what we’ve learned from friends from companies such as Proctor & Gamble, Johnson & Johnson, H.J. Heinz, who have achieved great success. Please take these insights seriously…
You Need To Double Up
As you know, fundraising for nonprofits focuses on both the short- and long-term needs of the organization. Short-term needs are fulfilled by annual fundraising projects, while long-term needs are addressed by planned giving specialists.
Short-term fundraising is necessary for immediate cash flow requirements, and planned giving is a longer-term effort to secure a steady and reliable source of funding — which requires patience to develop and realize.
For-profit brands such as Crest toothpaste, Tylenol, and Heinz Ketchup also face similar challenges for short- and long-term cash-flow needs. These needs are addressed from a budget of approximately 10% of annual projected sales. This budget is split: Approximately 60% goes to what is termed “promotion,” which is a component of marketing; and 40% goes to “branding,” which is creating awareness — again, through marketing — of what sets one product apart from all other products in the same category.
Promotion, via elements such as temporary price reductions and coupons, will generate short-term cash flow similar to annual giving initiatives for nonprofits.
Branding is an ongoing effort to build an equity in the minds of consumers so that they identify with a product on a personal level. It is executed through traditional (TV, direct mail, etc.) and digital (website, e-mail, digital ads, etc.) media. Branding takes time to build predictable results, but is necessary for the sustainability of a business. That is why Crest has been the #1 toothpaste for over 60 years.
We’re on the “Branding” Side
PlannedGiving.com follows the best practices of the for-profit world to help nonprofit entities realize superior results. We specialize in planned giving, which is the “branding” side of fundraising. We work to ensure that donors identify with your nonprofit on a personal level.
While results aren’t immediate, they are necessary to create a predictable revenue stream in the long term to sustain viability for a nonprofit institution.
The question is:
Are you investing enough of your budget and resources to sustain your future through planned giving, or are you directing most of your budget to chasing short-term needs — promotions — year-in and year-out?
