Low budget as a formula for success
Op-Ed: Even among nonprofit organizations, a cutthroat competition is raging. More and more NPOs are vying for donors’ favor in an increasingly professional manner—and in doing so, may be jeopardizing their credibility.
Guest commentary A cut-throat battle is also raging among non-profit organizations. More and more NPOs are courting donors more and more professionally - and in doing so may be jeopardizing their credibility.a "Ziischtigs-Club" about Gillette's third blade, an "Arena" about the effect of Rivella green? Humbug. A "Ziischtigs-Club" about the Pro Infirmis touchers, an "Arena" about the Public Eye on Davos? The comparison shows the most important marketing trump card that NPOs can pull out of their sleeves: Their products - usually activities that are intended to change society in a certain positive way - are of public interest and generally free from commercial entanglements. The media can therefore focus on them without being suspected of being venal.
In consumer and capital goods marketing, product orientation has long been a dirty word. Something similar can be observed in the social marketing of NPOs: wrongly so. This is because communication at product level offers NPOs enormous opportunities. No other marketing strategy provides better services in terms of raising awareness and profile. Of course, there are risks involved: Pro Infirmis has also been criticized as a result of the widespread debate about its latest offer - touch therapists to meet the sensual and sexual needs of disabled people - and some donors have even turned away from it. However, the corporate goal of an NPO is not its own growth, but to drive certain social changes. And experience has shown that these are accelerated by the launch of new, controversial services and their public discussion.
If the Berne Declaration (EVB) spends 1,600 working hours a year to realize the Public Eye on Davos as a counter-conference to the World Economic Forum, this is also a product development. However, this is directly part of the donors' mandate, as the Public Eye serves as a tool for criticizing globalization, one of the core issues of the Berne Declaration. Product development is therefore of great benefit to the image without requiring any actual marketing effort.
Which brings us to the second trump card in NPO marketing: low-budget campaigns. Placing the marketing focus on the products and on low-budget measures is not a niche strategy in social marketing, but also the tactic of market leaders. The main reason: low advertising and administration costs are key competitive advantages in this market. Studies show that trust in the sensible use of funds is the most important prerequisite for any new donation.
An exploding marketing effort can lead to exploding income. However, it also contains a time bomb: if the efficiency and therefore also the credibility of an NPO is called into question by donors at some point, it will pay the price in the form of destroyed market opportunities in the long term. The current controversy surrounding "People Against Mines Switzerland", whose fundraising efforts devoured around 97% of the donations collected according to media reports, provides an impressive case study. However, it should be expressly pointed out that such excesses in Switzerland are, in my opinion, the absolute exception.
Conclusion: If the social concern is of good quality, high impact can be achieved in NPO marketing with a low budget. A wide range of marketing instruments can and should be used. However, focusing on your own products and their development as well as a low-budget approach are not old habits, but the expression of a clever mind.
Berne Declaration campaign to criticize privatization.
In consumer and capital goods marketing, product orientation has long been a dirty word. Something similar can be observed in the social marketing of NPOs: wrongly so. This is because communication at product level offers NPOs enormous opportunities. No other marketing strategy provides better services in terms of raising awareness and profile. Of course, there are risks involved: Pro Infirmis has also been criticized as a result of the widespread debate about its latest offer - touch therapists to meet the sensual and sexual needs of disabled people - and some donors have even turned away from it. However, the corporate goal of an NPO is not its own growth, but to drive certain social changes. And experience has shown that these are accelerated by the launch of new, controversial services and their public discussion.
If the Berne Declaration (EVB) spends 1,600 working hours a year to realize the Public Eye on Davos as a counter-conference to the World Economic Forum, this is also a product development. However, this is directly part of the donors' mandate, as the Public Eye serves as a tool for criticizing globalization, one of the core issues of the Berne Declaration. Product development is therefore of great benefit to the image without requiring any actual marketing effort.
Which brings us to the second trump card in NPO marketing: low-budget campaigns. Placing the marketing focus on the products and on low-budget measures is not a niche strategy in social marketing, but also the tactic of market leaders. The main reason: low advertising and administration costs are key competitive advantages in this market. Studies show that trust in the sensible use of funds is the most important prerequisite for any new donation.
An exploding marketing effort can lead to exploding income. However, it also contains a time bomb: if the efficiency and therefore also the credibility of an NPO is called into question by donors at some point, it will pay the price in the form of destroyed market opportunities in the long term. The current controversy surrounding "People Against Mines Switzerland", whose fundraising efforts devoured around 97% of the donations collected according to media reports, provides an impressive case study. However, it should be expressly pointed out that such excesses in Switzerland are, in my opinion, the absolute exception.
Conclusion: If the social concern is of good quality, high impact can be achieved in NPO marketing with a low budget. A wide range of marketing instruments can and should be used. However, focusing on your own products and their development as well as a low-budget approach are not old habits, but the expression of a clever mind.
Berne Declaration campaign to criticize privatization.
> Stefan Kessler is a board member of the Berne Declaration and co-author of the 1998 and 2003 donation market studies (to be published at the end of August). Until May, he was also a partner in One Marketing Services AG in Zurich.
