In a recent New York Times article, author Stephanie Strom, reflects on the ever more visible issue of cause related marketing — a portion of each purchase of an item going to a charitable cause.
While an old idea and a fine one when used as a win win arrangement — the charity raises money and visibility through the tie in, consumers feel they are helping an organization through their purchase, and the company sells more products.
But, some firms are getting far more aggressive. Some are not telling charities they are tying their product sales to a donation. This is unbelievable given the common courtesy of asking for permission from a charity to involve them in a sales proposition.
The NY Times article: "Charity's Share From Shopping Raises Concern," provides some examples including The World Wildlife Fund being included in a Barneys’ Have a Green Holiday catalog. John Donoghue, senior vice president expressed his concern:
“Unfortunately, just like Barneys shoppers, we’re in the dark as to how or if Barneys and the manufacturers will fulfill their commitment to donate a portion of the proceeds from these products to WWF.”
Tom Wilson
Picture source St. Francis
While an old idea and a fine one when used as a win win arrangement — the charity raises money and visibility through the tie in, consumers feel they are helping an organization through their purchase, and the company sells more products.
But, some firms are getting far more aggressive. Some are not telling charities they are tying their product sales to a donation. This is unbelievable given the common courtesy of asking for permission from a charity to involve them in a sales proposition.
The NY Times article: "Charity's Share From Shopping Raises Concern," provides some examples including The World Wildlife Fund being included in a Barneys’ Have a Green Holiday catalog. John Donoghue, senior vice president expressed his concern:
“Unfortunately, just like Barneys shoppers, we’re in the dark as to how or if Barneys and the manufacturers will fulfill their commitment to donate a portion of the proceeds from these products to WWF.”
Tom Wilson
Picture source St. Francis
Permanent Link: Is Cause Related Marketing a Problem?
http://majorgiftsguru.com/2008/01/is-cause-related-marketing-problem.html
1 comments:
I am disturbed by the negative tone of Stephanie Strom's recent article: "Charity's Share From Shopping Raises Concern" (December 13, 2007).
Granted, there may be potential for unscrupulous practices when retailers donate (or merely claim to donate) a part of their sales, but surely the 50+ million dollars donated each year outweigh the negative actions of the unscrupulous minority!
Ms. Strom's issue of donors using philanthropic shopping to support charities instead of writing big checks is, quite frankly, ridiculous. Do we really believe that someone who can afford to buy a BMW and therefore generate a $25 donation to the Make-A-Wish Foundation, will then shirk off any other charitable acts?
As a co-founder of a website that allows consumers to trigger donations while they shop, I am exploring an exciting new model of fundraising, as are many of my big and small entrepreneurial peers. Comments from non-profits like "most embedded giving programs are hardly worth it" illuminate a gross underestimation of the old adage, "every penny counts," especially when you consider the Internet and its huge number of potential pennies.
Embedded giving may be unregulated, and I don't doubt that some businesses are taking advantage, but there are many, many charities and corporate partners that don’t ask consumers to blindly trust them--only to help them make a difference.
Marni Goltsman
Co-founder, ShopForCharityNow.com
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