Charitable Organizations Show More Transparency in Marketing Appeals

Consumers are still giving to their favorite charities and causes in the U.S. But with so many of these nonprofit organizations struggling because of cutbacks from government agencies, the need to raise cash to fund their programs is growing. New research has just been released that shows the best ways for nonprofit groups to promote themselves and their need for donations.

According to Phoenix Marketing International, about 2/3’s of U.S. consumers who earn at least $100,000 give about $2,500 in cash to their favorite charities. The level of giving rises somewhat with income. The Phoenix survey found revealed the following giving profiles for households earning $150,000:

  • About 1/​3 give $5,000 annually
  • About 1/​6 give at least $10,000 annually

When determining whether to give to a specific charity, about 25% of donors say that transparency is key. They want to know how the money will be used. Consumers are very aware that some portion of proceeds may be necessary to fund an organization’s operations but they want to know that their dollars are reaching people in need. Detailed information about the kinds of services being provided and the people being helped are increasingly important to potential givers. Cait Robbins, a Phoenix analyst notes that "a connection must exist between the organization and affluent investor such that the mission is perceived as important by the donor, that they in turn believe in the organization."

Affluent investors use a number of criteria when determining whether to give to a charity. These criteria include:

  • Wanting to help others
  • Supporting a good cause
  • Fulfilling religious obligation
  • Feel it is the right thing to do

These criteria should become part of the marketing message for any nonprofit organization seeking funds from new or existing donors.

[Source:  Affluent households and giving. Phoenixmi​.com. 2 Apr. 2012. Web. 18 Apr. 2012] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.