Alkesh Dinesh Mody Institute for Financial Management Studies

Alkesh Dinesh Mody Institute for Financial & Management Studies Marketing for non profit organizations TYBMS – Sem VI Sushmita Mukerji

What is a Non Profit Organization in India? A Non Profit Company to promote art, science, charity, religion or commerce for social development, social welfare and for charity can be registered under section 8 of the Indian Companies Act, 1956. Top 10 NGOs In India: Making A Difference: • Sightsavers • Child Relief & You (CRY) • Give Foundation. • GOONJ – a voice, an effort. • Help Age India. • K. C. Mahindra Education Trust (Nanhi Kali) • LEPRA India. • Pratham Education Foundation. • Sammaan Foundation. • Smile Foundation.

Non-profit Organization – Meaning, Roles & Responsibilities • Any organization that does not explicitly aim to generate profit as a result of its activities. • • • Charities and Foundations Corporate Social Responsibility initiative Non-governmental organizations Community organizations Clubs, fraternities and associations Semi-governmental organizations Roles & Responsibilities • • • Transparent Goal oriented Independent Volunteers or underpaid hardworking professionals ‘Noble’

Marketing for Non-Profit Organizations • Definition of non profit organization : A non-profit organization (also known as an NPO) is an organization that uses its funding to pursue a specific purpose, such as a charitable cause, rather than pursuing profits for its own benefit as a for-profit business does. • Some might not believe that investing in marketing strategies is necessary for nonprofits, but it is quite beneficial for an NPO to effectively market itself. • Non-profits use marketing tactics to assist with growth, funding and prosperity. Without these things, the overall mission of the NPO is diminished. • The marketing of a product or service in which the offer itself is not intended to make a monetary profit for the marketer. Benefits for Non-Profit Organizations Identification A non-profit organization is a group that raises money or performs deeds for a specific cause or set of causes. • For instance, an organization that uses its revenues to feed the homeless or educate children is a non-profit. • The organization receives revenue by soliciting donations from the community or selling items to raise money for the cause.

Purpose • A non-profit does not operate in an effort to build wealth or revenue for the benefit of the owner, directors or shareholders. • The main goal of a non-profit is to generate funds and volunteer assistance to help further its chosen cause. • A non-profit organization can also act as a publicity vehicle to bring more attention to an issue in the community. Benefits • One of the main benefits of running a non-profit organization is that you have an opportunity to assist the community via funds and volunteer work. • Because the organization is tax-exempt, it does not have to pay taxes on the money it raises. • Additionally, registered non-profits have limited liability under the law when it comes to debts; the owners and organizers are not personally responsible for business debts with a few exceptions. • Non-profits also have access to government-sponsored and private grants and loans that for-profit companies do not. • Another benefit of running a non-profit is that, like a standard for-profit business, it helps create paid jobs. • Marketing in non-profit world What is being marketed? Product Vaccine development Service Vaccine administration Result Less preventable illnesses • Identifying the stakeholders Staff Donors Professionals Auditors Internal Beneficiaries Donors Government(s) Society External

Difference Between for Profit & Not for Profit Marketing For Profit Marketing • The objectives of marketing in the for profit environment are usually to let potential customers in your target market know about your product or service and how it can benefit them, with a view to selling it in exchange for money. • The corporation keeps the money, and the customer enjoys the product or service he has bought. For profit marketing also focuses on developing new markets for existing products or identifying markets for new product lines. • Nonprofit Marketing • A nonprofit organization markets the work it does or the cause it supports, instead of a product or service. • The purpose of marketing is to build awareness of an issue and to gain financial support from the public for its cause. • The “customer” gives his money to the organization in exchange for the opportunity to contribute towards its philanthropic work. As with for profit marketing, the result is that the corporation keeps the funds, while the individual retains the knowledge that the organization uses his money to make a difference for its cause.

Difference Between for Profit & Not for Profit Marketing For Profit Marketing Differences • The major difference between the marketing of the two types of corporations is the fulfillment of the customer need. • The for profit marketing customer has a need of his own that he fulfills by the purchase of the goods or services; the nonprofit “customer” recognizes the need of others and his ability to help fulfill it through donation of his time, money or service. • For this reason, retail sales of the primary product or service do not apply to the nonprofit corporation. Many nonprofits do conduct retail sales of promotional items to help raise funds, but this is not their primary product or service.

Branding of Non Profit Organization • Like any business, philanthropies have no choice but to compete for supporters’ money. • The best way to do so is by creating a strong brand. • According to ARCH, a national resource for respite and crisis care centers, in order to best market the business your company must identify its constituents, design programs to suit their needs, measure the constituents' satisfaction with their programs, and use the results to fine tune their program. • Once your program is clear, you are able to present your service--your brand--to potential supporters. One way to strengthen your brand is to develop a slogan. • Publish Your Message • When selling a message or viewpoint, and not simply a product, communication is a necessity. Every non-profit should have a newsletter or electronic newsletter (e-mail) according to Community Driven Institute. By “writing for the general public or for membership associations or others interested in your work, ” in conjunction with your community distributions, “your written wisdom will not just go to those who already know you, but to those who do not know you yet.

Public Speaking • One great attribute for your non-profit is a spokesperson. • According to Reis, “Ideally, the founder is the best person to take on this role. He or she has a powerful connection to the brand can sell the story to the media, donors, volunteers and supporters. ” • Many supporters question how contributions are used. When you provide them with a person who actively engages with them, answers questions, shares stories and relates successes, they become immediately involved in who you are and what you do. • Community Outreach • In the world of community outreach, “consistency is the key to success, ”. • Determine the best programs to suit your mission and work on those until they are stable and you do them every year. • People appreciate being able to see how their time and money are used; and it feels good to see the results of your donation continue year after year. • An Online Presence • Online accessibility is an important marketing tactic. Create a web page for your non- profit and build a social media presence. • Put your cause out there, writes Network for Good, “optimize your search engine marketing. ” Get as many good links to your company’s web page as possible and “make sure all your online outreach and presences enable two-way conversation with your supporters, fans and non-fans.

Basic Steps to Marketing Your Nonprofit Organization • Define your target market, research similar organizations and associations. • Determine the desired outcome of your marketing efforts. • Using the information gathered in Step 1 and 2 develop brochures and marketing materials that describe the benefits, services, donation opportunities, and values of your organization. • Develop a social media marketing strategy. Social media such as Twitter and Facebook can provide you with ways to reach out to those interested in your organization in a low cost and effective way. Social media works great when it comes to reaching those who are passionate about causes that individuals hold dear to their hearts. • Develop and maintain a professional internet marketing presence by creating a web site. You can use a web site as a great resource to display useful information, news, monthly newsletters, events, create community, share alternatives to donating money, and showcase the benefits of your organization.

Basic Steps to Marketing Your Nonprofit Organization • Research and maintain your prospect and customer databases. Do not let these resources be wasted. Use them for special mailings, follow-up telephone calls, event invitations, alliance development, research profiling, and market segmentation. • Show and advertise the results and objectives that your organization achieves. • You fill find that it is effective to showcase those that are receiving benefits, inversions, activities, and projects. • Always actively search for alliances with other organizations, commerce, government, advertising media, and business.