Don’t Take a Simplistic View of Cause Marketing

To the Editor:

Irving Warner makes several important points about cause-related marketing and the need for non-profits to proceed carefully in this increasingly important arena of resource development (“Marketing Deals Shouldn’t Be Child’s Play,” Opinion, September 24).

However, while conveying the author’s strong philosophical dislike for corporate-charitable alliances, the column also reflects a simplistic view of these relationships. Several statements directed at the partnership between the Coca-Cola Company and Boys & Girls Clubs of America are ill-informed and call for clarification.

First, if practiced professionally and ethically, philanthropy and marketing are certainly compatible. Most of the funds generated by Boys & Girls Clubs of America and its 900 local affiliates still come from good old-fashioned charitable giving — businesses, foundations, and individuals donating to a cause they believe in. That is hardly what one would call “giving up on philanthropy.” The value added by marketing alliances comes not only from additional funds, but from the significant awareness generated. This in turn spurs charitable giving.

Second, Mr. Warner is absolutely correct that “charities should set standards for marketing that don’t compromise the ethical integrity of their causes.” Boys & Girls Clubs of America’s Board of Governors established a set of guiding principles for all marketing alliances. These include:

* Stringent review: The governing board must approve all major cause-related-marketing partnerships.

* No exclusive relationships: We do not endorse any brand or product and do not mandate that local clubs participate in any specific corporate-related program (e.g., many clubs have relationships with local Pepsi bottlers, which continue despite our partnership with Coca-Cola).

* No “quid pro quo”: The business benefit for our corporate partners lies in public good will. Studies indicate consumers are more likely to favor brands associated with charitable causes.

Third, Boys & Girls Clubs (and most schools and recreation centers) have had soft drinks and juices available in vending machines since they were invented. There is no indication our members consume more or less of these beverages than before. In fact, the typical club provides juices, sports drinks, and bottled water in addition to soft drinks.

Finally, the benefits accruing to Boys & Girls Clubs speak for themselves. Millions of dollars in cash contributions and in-kind donations have resulted during the last two years alone. This holiday season, the first national promotion by Coca-Cola in support of Boys & Girls Clubs will see postcards decorated with the artwork of club members distributed in 42 million product packages, and a contribution of $500,000 generated by these sales. This exposure, let alone the financial donation, delivers inestimable value for our clubs.

The term “cause-related marketing” came into vogue in the early ‘80s when sales-generated funds helped refurbish the Statue of Liberty. Yes, non-profits must establish guiding principles — and follow them — to insure positive results and preserve their mission’s integrity. But does Mr. Warner really believe that the charitable world should return to yesteryear by “bringing non-profit marketing to a screeching halt”?

Boys & Girls Clubs of America’s 138-year mission calls for serving the developmental needs of all young people, with a special concern for those from disadvantaged circumstances. Today we reach some three million youths, yet more than 15 million kids live in poverty in America and could benefit from a club or other effective youth agency.

We’ll continue to seek responsible, innovative ways to generate needed resources in an increasingly competitive environment. The funding and awareness from marketing partnerships will play a strategic role in helping Boys & Girls Clubs reach out to America’s children.

Kurt Aschermann
Senior Vice-President for Marketing and Communications
Boys & Girls Clubs of America
Atlanta