Business

Cause-related vs. Strategic philanthropy

Six months ago, I contacted a national corporation about their consideration of developing a corporate strategic philanthropy program. They had none. I kept thinking, imagine the impact this corporation could have on the communities where it has a presence! WOW! It would be great for them and the communities. Let me tell you that this corporation is great. Okay, they are huge.

Well, they were kind enough to let me know that they had just hired a public relations firm to create one for them. I thought to myself: “What PR company? No, please, no.” But what to do next, just wait and see what they come up with. Just a month ago, I visited the corporate website. There it was, just like I thought it was going to happen. They have a program, but it is a marketing program related to a cause. I was heartbroken and let me tell you why.

Cause-related marketing programs are based on two things. One is a one-to-one partnership between a company and a charity. The other is product driven / sales promoted. The program works as long as there is no negative publicity about the company or charity and it works as long as the product is moving. Simply put, cause-related marketing has a shelf life. While people argue that any donation is a good thing, these types of programs are not sustainable. The message is not necessarily one that is sustained over time or giving.

On the other hand, strategic philanthropy programs are created by individuals or companies whose roots are based on philanthropy. Philanthropy is a field with its own set of principles, methods, professionals, and message. Strategic philanthropy is not based on products or services and is not promoted through sales. In essence, it is based on the fundamental principle of being responsibly committed to changing the lives and world of today and of future generations.

If your business is serious about making an impact and giving back, you need to be serious about the type of giving program you have and how it works. It must be value-based and sustainable. Consumers are smart people, just like you and me. Don’t think you are being fooled by donations that are essentially marketing based. If you want marketing, hire a marketing strategist. If you want philanthropy, hire a philanthropy strategist.

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