To Market, To Market

A growing number of charities, large and small, are joining with companies to raise money

St. Jude Children’s Research Hospital, in Memphis, has long relied on money from corporations. In particular, it has been focusing on marketing deals with companies, and last year raised $21-million from such arrangements. The deals don’t happen without a lot of work, however: St. Jude has 13 employees who have developed alliances with 40 companies and are seeking out new ones.

St. Jude’s corporate sponsorships have included a wide range of approaches. One with Sterling Jewelers, for example, has raised $8.1-million for the hospital over the past seven years through a promotion in which the company sells a commemorative plush bear to its customers each December and then donates the net proceeds of those sales to St. Jude. Another effort, involving Hancock Fabrics, has raised $4.3-million since 2002. The company makes a special line of fabrics based on art designed by St. Jude patients and provides the charity with 30 cents for each yard of fabric sold.

$1.34-Billion Spent

While big national charities may find it easier to attract such support, a growing number of small charities are also benefiting from marketing deals.

A partnership between Squatters Pub Brewery, in Salt Lake City, and the charity No More Homeless Pets, for example, has brought in $36,000 for the charity. The brewery donates five cents from the sale of each bottle of a specialty beer to the charity, which works to prevent cats and dogs from being euthanized.

Such marketing efforts are producing big money for nonprofit groups. American companies are expected to spend $1.34-billion on such marketing arrangements in 2006, according to IEG Sponsorship Report, a newsletter that covers event and sports marketing. That figure represents a 14.5-percent increase over the estimated $1.17-billion spent on charity marketing deals in 2005 and is more than 11 times greater than the $120-million spent in 1990.

The growth has been a boon for companies, charities, and the public, says David Hessekiel, founder of Cause Marketing Forum, a trade group in Rye, N.Y., that encourages companies and charities to collaborate on marketing campaigns. Marketing deals between charities and corporations, when done well, Mr. Hessekiel says, are “one of those rare situations where one plus one equals three. It benefits the company, it benefits the nonprofit, and it benefits society.”

Money is not the only benefit that a marketing deal with a company can offer — and often it is not the most valuable payoff. Companies usually foot the bill for advertising and other promotional efforts describing the cause they support, an expense many charities could not otherwise afford. What’s more, companies that offer marketing deals to charities often end up sending employees to volunteer for the charity or making outright grants to the organizations.

American consumers have become much more receptive to the idea of close partnerships between charities and companies, says Julia Hobbs Kivistik, vice president of cause branding at Cone, a Boston marketing firm.

A 2004 survey by Cone found that, when price and quality are equal, 86 percent of Americans will reward a company that supports a worthy cause. Nearly 9 in 10 customers — 89 percent — said in the same survey that they believe nonprofit groups and companies should work together to support a cause.

These strong feelings are fueling the recent explosion in cause marketing — a trend Ms. Kivistik says will probably continue. If that happens, she says, charities stand to benefit, provided they take steps to make sure they are entering relationships that fall in line with what they are hoping to accomplish.

“Nonprofits need to be true to their mission and true to their values and why they exist,” she says. “As a nonprofit, you are building your brand when you partner with a company. It’s important that they don’t just react to every opportunity. Make sure the opportunity is aligned to their brand as a nonprofit.”

‘What Do We Stand For?’

Charities have to think about their images as much as companies do, Ms. Kivistik says. Forming a marketing deal with a company that doesn’t share a charity’s values can erode the organization’s brand or hurt its public image, she says.

Some companies have a strong commitment to social responsibility. Others, however, might simply be looking for good press or to bump up their revenues by tugging at customers’ heart strings.

“You need to really say, ‘Who are we and what do we stand for?’ Seek out companies that fit and have a commitment to give back,” Ms. Kivistik says. “You look at a company and think, ‘Would they align with our mission from a high-level business-mission standpoint?’ Then you begin to build long-term partnerships. You need to take time to learn everything about the company.”

Other marketing experts agree that nonprofit groups should look beyond the short-term benefits they can obtain from a marketing deal. Too many charities spend enormous resources to bring about cause-marketing promotions but fail to map out how they can continue to work with a company after the promotion ends, says Raphael Bemporad, of Bemporad Beranowski Marketing Group, a New York firm that helps companies and charities work together.

“What we have now is a love-me-and-leave-me situation, where it is a one-time promotion rather than ‘let’s join together to expand the strength of both organizations over the long term,’” he says.

To help charities and companies avoid that situation, Mr. Bemporad’s firm has joined with seven other organizations to offer a $100,000 grant that will be used to mount a cause-marketing campaign in which both charity and company commit to a long-term partnership. Charities and their potential corporate partners must apply for the grant by July 31; for more information, go to http://www.itshowwelive.com.

“It is vital for nonprofits not to see cause marketing only as a way to raise their profile or get a quick check,” says Mr. Bemporad. “They should see it as an opportunity to utilize the skills, leadership, research, expertise, and network of a for-profit to move their mission forward.”

Ballet Troupe Joins With Department Store to Attract Wealthy Donors

The company: Saks Fifth Avenue

The charity: American Ballet Theatre, in New York

How it works: When American Ballet Theatre started a new fund to restore, replace, and archive its costumes, Saks Fifth Avenue agreed to make an annual cash donation of $50,000 for the project. The upscale retailer displayed ballet costumes and themes in its Fifth Avenue windows during the 2005 holiday season, and it commissioned a 16-page advertising section in Vogue magazine, featuring dancers from the ballet modeling well-known costumes and a professional model dressed in couture designer-wear sold at Saks.

How it helps the charity: In addition to Saks’s annual cash donation, the ballet troupe’s costume fund has attracted many donations because of the company’s high-end advertising and promotions.

How it helps the company: The partnership with the ballet helps Saks further its association with high-fashion, arts, and other cultural activities supported by wealthy patrons.

Animal Charity Is Brewery’s Pet Project

The company: Squatters Pub Brewery, in Salt Lake City

The charity: No More Homeless Pets, a Salt Lake City charity that works to prevent dogs and cats from being euthanized

How it works: Squatters Pub Brewery donates five cents to No More Homeless Pets for every bottle cap that is redeemed from its Chasing Tail Ale.

How it helps the charity: To date, the bottle-cap redemptions have raised $36,000. No More Homeless Pets says the partnership has helped it promote its cause by featuring the charity’s logo and Web address on the labels of Chasing Tail Ale. The brewery also allowed No More Homeless Pets to create an informational insert that is placed in every six-pack, which tells readers about the charity, its mission, and its recently announced membership campaign.

“One of the best parts of this, other than the money and the awareness, is there is a dog on the label, Ernie,” says Julie Castle, executive director of No More Homeless Pets. “Ernie is sort of a socially responsible mutt, and we’ve been able to work with Squatters to have him carry messages. He says things like, ‘Are you fixed? I am.’ They let us choose the saying. That’s been a huge thing for us.”

How it helps the company: The brew has proven popular in Utah, and is Squatters’ best-selling beer. The company says the partnership with No More Homeless Pets ties in well with its brand, which plays up social responsibility.

Cyclist’s Organization Teams Up With Computer Companies

The companies: Hewlett Packard and Advanced Micro Devices

The charity: The Lance Armstrong Foundation, an Austin, Tex., group that raises money to fight cancer through advocacy, education, and research

How it works: Hewlett Packard, the computer manufacturer, and Advanced Micro Devices, which makes microprocessors for computers, are working together to sell the L2000 Notebook PC. The companies are donating $50 from the sale of each computer — which includes a reproduction of Lance Armstrong’s autograph — to the Lance Armstrong Foundation through June.

The companies are also donating 20 computers to Lance Armstrong Foundation centers for cancer survivors. And they are running a campaign tied to the “25,000 Strong Collage” — a feature on the foundation’s Web site. Users are invited to upload their own photos of what it means to “live strong” — the foundation’s motto — with the companies offering to donate $1 for each uploaded photo, up to a maximum of $25,000.

How it helps the charity: The charity has received more than $2-million through the computer sales. The partnership is also allowing the organization to spread its message into a new market. The charity has longstanding partnerships with sports-oriented companies, such as Trek bicycles and Nike, but it has been trying to reach other corporate arenas as well.

How it helps the company: HP and Advanced Micro Devices have benefited from Mr. Armstrong’s popularity as both an athlete and an advocate in the fight against cancer. Many retailers have reported that they have sold out their entire supplies of the computer within hours of its arrival in stores.

Deal With Charity Helps Polish Jewelry Company’s Image

The company: Sterling Jewelers

The charity: St. Jude Children’s Research Hospital, in Memphis

How it works: Sterling Jewelers — which operates about 1,100 jewelry stores, including Kay Jewelers — offers a collectible plush bear each holiday season to anyone who purchases jewelry. All net proceeds from the sale of the $9.99 bears — at least $4 per bear — are donated to St. Jude Children’s Research Hospital.

How it helps the charity: The seven-year-old partnership has raised $8.1-million for St. Jude. Phil McCarty, St. Jude’s vice president of corporate alliances, also reports that the partnership has prompted Sterling employees from across the country to volunteer their time with St. Jude.

How it helps the company: The program has helped bolster Sterling’s image as a supporter of children’s causes. The company has also used the program as a way to improve employee morale. Store managers and district managers for the store that sells the most bears are given a trip to Memphis to tour the hospital, see its research, and meet patients.

Partnership With Mattress Company Raises $1-Million for Salvation Army Chapter

The company: Denver Mattress Company

The charity: Colorado Chapter of the Salvation Army, in Denver

How it works: The Denver Mattress Company annually donates $20 to the Colorado Chapter of the Salvation Army for each mattress it sells between November 25 and December 31. The company also pays for a newspaper and television advertising campaign during the holiday season to solicit donations and raise awareness for the Salvation Army.

How it helps the charity: The six-year-old partnership has raised $996,000 for the Salvation Army. The organization has also benefited from Denver Mattress’s advertising support during the most active fund-raising period of the year.

How it helps the company: Denver Mattress benefits from having its name attached to a visible charity during the crucial holiday sales period. The relationship has also helped the company’s employees become more involved in volunteer and fund-raising activities with the Salvation Army.

Recycling Company Turns Pounds Into Dollars for Ronald McDonald House Charities

The company: United Scrap Metal, a recycling company in Cicero, Ill.

The charity: Ronald McDonald House Charities of Chicagoland and Northwest Indiana, which provides housing to families with children who are receiving treatment at hospitals

How it works: Since October 2005, United Scrap Metal has been encouraging customers to bring the pop tabs from aluminum cans to its recycling center and to Ronald McDonald Houses in and around the Chicago area. The company donates to the Ronald McDonald House 25 percent of the going rate for aluminum for each pound of redeemed beverage tabs.

How it helps the charity: Ronald McDonald House has so far received $60,000 from United Scrap Metal. Donors are provided with an easy and inexpensive way to contribute to the charity. As Brad Serlin, United Scrap Metal’s vice president of sales, says: “Not everyone can go to a $500-a-plate fund-raising dinner.”

How it helps the company: United Scrap Metal has collected 80,000 pounds of aluminum pop tabs, material that it can recycle and sell.

Collectible Bear Collects Dollars for Environmental Charity

The company: Build-a-Bear, a St. Louis retail company

The charity: World Wildlife Fund, in Washington

How it works: Build-a-Bear each year introduces a new stuffed animal that is called a WWF Collectibear. The company donates $1 from the sale of each of the $25 animals to World Wildlife. Each animal is adorned with a collector’s medallion featuring the charity’s official panda logo and a numbered Certificate of Authenticity.

How it helps the charity: The six-year-old partnership has raised more than $1-million for the wildlife federation. The charity has also benefited from a company-supported education program that teaches children about endangered animals and includes animal-themed games on Build-a-Bear’s Web site.

How it helps the company: The Collectibears have become popular with collectors, which helps bring Build-a-Bear repeat customers who want to buy and assemble their own versions of each new animal. The company also mentions its charitable work in efforts to promote its image.

Celebrity-Shoe Exhibit Raises Millions for Children in Orphanages

The company: The Macerich shopping-center company, in Dallas

The charity: Buckner Orphan Care International, a Dallas ministry that provides social services to children around the world

How it works: Shoes donated and autographed by celebrities — such as Tom Hanks, Sarah Jessica Parker, and Robin Williams — were displayed at 15 Macerich shopping centers to raise awareness of Buckner Orphan Care’s “Shoes for Orphan Souls,” which provides shoes for children in orphanages in more than 30 countries. The celebrities’ shoes were part of a traveling exhibit to encourage people to donate shoes. In addition to the exhibit, the company held an auction at which people could bid on the celebrity shoes. Next year organizers expect to expand the number of locations for the exhibit and the charity auction.

How it helps the charity: The project raised nearly $40,000 last year, as well as an estimated $2.47-million in donated advertising time and shoes.

How it helps the company: The celebrity shoes helped draw visitors to Macerich’s shopping centers and produced national exposure for the company.

Supermarket Partnership Has Raised $33-Million for Cancer Group

The company: Stop & Shop, a New England supermarket chain

The charity: Dana-Farber Cancer Institute, in Boston

How it works: Each spring, Stop & Shop supermarkets sell $1 scratch-off tickets to customers at their store checkout lines. Each scratch-off ticket includes a prize of cash or store merchandise. The merchandise is donated by Stop & Shop vendors. All proceeds benefit the Jimmy Fund, the fund-raising arm of the Dana-Farber Cancer Institute.

How it helps the charity: The program began in 1991 and is the Jimmy Fund’s largest and longest-running corporate partnership — raising an estimated $33-million. The program allowed Dana-Farber to create the Stop & Shop Family Pediatric Brain Tumor Clinic.

How it helps the company: Stop & Shop has been able to use the tickets to introduce customers to new products. In addition, Stop & Shop says the effort has bolstered the company’s image as a socially responsible company.

Pet Store Pairs Up With Humane Society

The company: Petco Animal Supplies, in San Diego

The charity: San Diego Humane Society and SPCA

How it works: Petco Animal Supplies agreed to give the San Diego Humane Society $1-million from its foundation over the five years from 2004 to 2009, as well as donations from its San Diego area stores. The company also gives the San Diego Humane Society free marketing through in-store promotions and advertisements at Petco Park, the home of Major League Baseball’s San Diego Padres. Following Hurricane Katrina last year, Petco cashiers asked customers whether they would be willing to round the value of their purchases up to the next dollar as a way to raise money for the Humane Society’s relief efforts. Petco also is the main sponsor at the San Diego Humane Society’s three largest annual fund-raising events.

How it helps the charity: Petco’s donations have helped pay to maintain the San Diego Humane Society’s new animal-care campus. The company’s money has also helped the charity solicit gifts from other corporations.

How it helps the company: The relationship helps Petco make a local connection in its home market of San Diego with a charity that aligns well with its key customers.