What is cause-related marketing?
Cause-related marketing (CRM) is a mutually beneficial collaboration between a corporation and a nonprofit designed to promote the former's sales and the latter's cause.
American Express first coined the term in 1983 to describe its campaign to raise money for the Statue of Liberty's restoration. American Express donated one cent to the restoration every time someone used its charge card. As a result, the Restoration Fund raised over $1.7 million and American Express card use rose 27%. One study found that more than 9 in 10 consumers are likely to switch brands to one associated with a good cause, assuming comparable quality and pricing.
Nonprofits can potentially benefit from the increased fundraising and exposure that CRM offers. Such partnerships, however, must be carefully considered as they can pose risks to both parties' reputations. For example, a worthy cause could be cheapened if consumers see the CRM as crass commercialism. Look instead to some examples of successful partnerships at Selfish Giving. Another good resource is the book Designing for the greater good: the best in cause-related marketing and nonprofit design, which has numerous examples from cause-related campaigns plus 24 case studies and insights into great nonprofit branding campaigns. You can borrow eBooks on corporate giving, such as Cause Marketing for Nonprofits, through our digital collection on Overdrive.
To find and develop CRM opportunities, nonprofit organizations should expand their research efforts beyond the traditional corporate giving divisions (such as corporate foundations or corporate giving programs)and instead try contacting a company's marketing department. A company may partner with a small, unknown charity simply because it's a worthy cause, but most look for charities that are well-known with a large supporter base and, increasingly, marketing know-how.
Learn now about corporate fundraising with Introduction to Corporate Giving, our free class. Available free as both an online webinar and an in-person class.
See our related Knowledge Base articles:
- How can I find corporate sponsorship?
- Where can I find examples of corporate sponsorship levels?
- More articles about corporate funders
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Ask usExplore resources curated by our staff for this topic:
Staff-recommended websites
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Staff pick
Wiley [PDF]
The Cause-Marketing Movement
This PDF is an excerpt from the book, Cause Marketing for Nonprofits: Partner for Purpose, Passion, and Profits, by Jocelyne Daw.
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The Balance Small Business
3 Cause-Marketing Trends for Nonprofits and Their Business Partners
Describes how cause-marketing is expected to grow, how companies are asking consumers to change their behavior for the better and recommends best practices.
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New York Attorney General
Five Best Practices for Transparent Cause Marketing
Calls for clear disclosure of charity's name and benefit(s) in ads, websites, and packaging used in cause marketing campaigns. Includes guidance for charities and consumers.
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Staff pick
Engage for Good
Provides articles, best practices, case studies, and other online tools related to cause marketing. Its directory provides a "who’s who of doing well by doing good." Also recognizes one company and one nonprofit each year for overall excellence in cause marketing with a Golden Halo Award.
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Staff pick
CAUSE MARKETING: 10 Cautionary Principles for Nonprofits - Cause and Effect
A guide to choosing a partner for cause marketing that takes into consideration what the nonprofit has to gain or lose.
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Selfish Giving Blog
Blog by consultant Joe Waters, author of Cause Marketing for Dummies and other books.
Staff-recommended books
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Cause Marketing for Nonprofits
Find: Amazon | Free eBook