Transcript Arizona Calling

What’s
the Deal
With
Marketing?
AFP Southern Arizona
Friday March 14, 2008
What IS “Marketing?”
• Marketing, - noun 1a a process
designed to bring about the voluntary
exchange of values between a not-forprofit organization and its target
market, such as the transfer of a
donation in exchange for addressing a
social need, recognition, or a feeling of
good will. 1b the process or act of
fostering such an exchange in a
market.
Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-4019
2
What IS “Marketing?”
• Marketing, - noun 1a a process
designed to bring about the voluntary
exchange of values between a not-forprofit organization and its target
market, such as the transfer of a
donation in exchange for addressing a
social need, recognition, or a feeling of
good will. 1b the process or act of
fostering such an exchange in a
market.
Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-4019
3
“Marketing” in the real world
• Marketing is a societal process which
discerns consumers' wants, focusing
on a product or service to fulfill those
wants, attempting to mold the
consumers toward the products or
services offered…. Marketing is the
process of creating or directing an
organization to be successful in selling
a product or service that people not
only desire, but are willing to buy.
Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-4019
4
Leads to CONFUSION
• For donors
• For Board members and other
volunteers
• For committee members
• For non-profit directors and managers
• For fund development professionals
Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-4019
5
More Confusion
• “Development” in for-profit sector
means “Business Development” or
“Product Development”
• “Marketing / Development Committee”
of the Board – does which??
• “Director of Development / Marketing?”
• We sometimes speak in terms of what
we have to “sell”
Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-4019
6
“Transactional Fundraising”
•
•
•
•
•
•
•
•
Raffles and/or Auctions
Event ticket-purchases
Thrift Shops
Package tours
“Branded” merchandise sales
“Cause-related” marketing
Cookie/gift wrap/candy sales
“Free will donation” concerts
Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-4019
7
What’s the Difference?
Developent
Marketing
• Philanthropy
• Quid pro quo
• May be taxdeductible
• No tax benefit to
constituent
• Code of Ethical
Standards
• No standardized
ethical code
• Mission is central
• “Customer is always
right”
“Customer is Right” example
• Event tickets are $100 (table $1000)
• Tax-deductible portion = $60 (table
$600)
• Table purchaser is only eating one
meal, so thinks her tax letter should
state “$960 of which is tax-deductible”
Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-4019
9
“Mission-focused” example
• Event tickets are $100 (table $1000)
• Charitable portion going to agency’s
mission = $60 (table $600)
• Doesn’t matter how many meals
purchaser eats; the tax benefit to the
agency is just $600.
Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-4019
10
Words are Everything
“Goods and/or services you are eligible
to receive as a result of this purchase
are estimated to be approximately $40;
the remainder - $60 - may be taxdeductible to the extent allowed by law
and your personal tax circumstances.”
Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-4019
11
Words are Everything
“The charitable benefit that will come to
this agency as a result of your
purchase is estimated to be $60; that
amount may be tax- deductible to the
extent allowed by law and your
personal tax circumstances.”
Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-4019
12
What to do? What to do??
1. If your job is “development” and
“marketing,” be clear about which
you’re doing.
2. Educate your organization’s Director
and Board members about the
differences.
3. Talk thru the differences with your
marketing counterpart.
Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-4019
13
What to do? What to do??
4. Introduce your marketing counterpart
(and Director, and Board) to the AFP
Code of Ethical Standards and
Professional Practice.
5. Work with your marketing counterpart
to implement fund development
messages in marketing messaging
(and vice versa!).
6. Learn the basics! Who is the
audience? What do they care about?
Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-4019
14
What to do? What to do??
7. Examine your Development Plan (or
write one!); look for an appropriate
ratio between “transactional” and
“direct” fund development.
8. Begin to move your program more
toward “direct” fund development
(and let Marketing do the marketing!).
9. Bring others (the Mktg Director, the
Director, Board volunteers, etc.) into
the discussion.
Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-4019
15
Thank
You!
[email protected]
(520) 977-4019
www.ClydeKunz.com