Marketing & Communications:
The Cornerstones of Successful Fundraising

By: Ed Lewis, MPA, CFRE

It is extremely important for Nonprofit Organizations to understand the principles of marketing and communications and how they can dramatically improve their fundraising efforts. In this article I will discuss some key elements of both and how these important factors should ultimately result in a written marketing plan for the organization.

Definitions
Let’s start with basic definitions: Marketing is the anticipation, management and satisfaction of demand through the exchange process. Specifically, Nonprofit Marketing is conducted in the public interest or to foster a cause and does not seek financial profits per se. It may involve organizations, people, ideas, as well as goods and services. Communications: To transmit information, thought, or feeling so that it is satisfactorily received and understood. It is a two-way exchange process. When you look at these definitions it basically boils down to the following: Marketing is the larger overall strategy to advance the interests and fundraising of the organization that will provide resources (funds) for the organization to carry out its mission. Communications are the various vehicles/methods utilized to convey the marketing plan (message) to the public at large. Examples are press releases, feature stories, letters to the editor, radio announcements, television coverage, billboards, direct mail, internet banner ads, etc. Communications decisions are directly impacted by the financial resources that are allocated.

Painting a Picture
The concept I like to convey is that Marketing and Communications is a process of “Painting a Picture.” The better you paint the picture (tell the organization’s story) the more successful you will be in getting prospective donors to give a gift. As you paint the picture (create the message or explain the mission) always adhere to the Three C’s, by making it Clear, Concise and Compelling. Remember this concept of “Painting a Picture” as I will make reference to it and give examples as we proceed.

Principles of Marketing
Let’s briefly discuss the principles of marketing. I like to break it down into a very simple formula. First you have to Find’em by utilizing Marketing Research, Marketing Information Systems (MIS) and Data Base Marketing techniques and programs. Once you have located/found your prospects (targets) then you have to Get’em by using advertising, marketing, sales promotion, personal selling and pricing strategies. Finally, after you Find’em and Get’em it is very important to Keep’em by producing a quality service or product, utilizing thoughtful pricing strategies, providing value added services whenever possible and through personalizing your communications and message with your donors, supporters and volunteers (Stakeholders). This is referred to as creating loyal donors/customers.

The Marketing Mix consists of your Product or Service, Distribution, Promotion and Price. The Promotion Mix components are Advertising, Public Relations, Sales and Sales Promotion. These are the primary principles of marketing that all professional fundraisers should become familiar with and implement within their organizations.

Cutting Through the Clutter
We will briefly talk about all of the above marketing principles, but first let’s discuss why it is important to master them. It is said that from the time we get up in the morning until we go to bed (approximately sixteen hours later) we are bombarded with thousands of messages (clutter)-all trying to get our attention and ultimately our participation and resources. This is why you need to understand the marketing process and be prepared to compete effectively in the marketplace. I like to explain this process as a consumer/donor learning curve that you are trying to successfully penetrate. If people don’t begin to understand what it is you are trying to communicate within a reasonable timeframe (15-20 seconds tops), they will move on to something else that gets their attention and you will lose the opportunity to Get’em. The shorter the learning curve is in regards to your message the better off you are.

Here are some objectives you should strive to achieve as you endeavor to “Cut through the Clutter.” Use powerful language, strong visuals, appropriate colors, make it easy to read, establish and maintain consistent layout style, perhaps create a logo and spend enough to make it work. This addresses the concept of “Painting a Picture” as it relates to telling your story effectively and obtaining the desired results.

Marketing Mix
As promised, let’s discuss the Marketing Mix before we review the elements of a written marketing plan. Product/Service is what your organization provides to its donors/clients; Distribution is the way in which you deliver the services: Promotion is the methods and techniques you use to market your product/service and Price is what the donor/client pays for those services. In nonprofit organizations price could be different levels of membership, a ticket to the gala or an entrance fee to play in the golf tournament. In many cases price is not directly associated with the cost and is based upon the capacity of the donor to give and the satisfaction the donor receives by making a difference in the world.

Now let’s move quickly to the fun stuff, the Promotion Mix. Advertising you pay for or receive as an in-kind gift (gift of trade) and you control the message completely. Public Relations consists of publicity and all the public activities you or your organization conducts. Special Events are one of your most important public relations activities. Publicity is any coverage you get by the media and it cannot be controlled; Remember Advertising you pay for and Publicity you pray for. The final two components of the promotion mix are sales and sales promotion.

Yes, believe it or not, we are actually selling even if we don’t like to refer to it as sales. For instance, if you ask someone to purchase a ticket to your luncheon and they do, that is straight sales. On the other hand, if you take out and ad or offer a discount coupon in the local newspaper that invites someone to become a member that is sales promotion. You are promoting the sale of a membership via a discount or special offer; this is considered a sales promotion.

Marketing Plan
Now let’s discuss the elements of a written marketing plan. Here is an excellent outline to follow to create a marketing plan: Mission Statement, this becomes the basis of your sales message and all marketing decisions should support the stated mission; Marketing Objectives should cover qualitative and quantitative outcomes desired. Qualitative would relate to what kind (quality oriented) for the most part and quantitative relates primarily to how many. It is far easier to identify how many or the quantitative objectives then it is to identify the quality objectives; so don’t beat yourself up over this. Next conduct a Situation Analysis determining Strengths, Weaknesses, Opportunities and Threats (SWOT). With strengths and weaknesses you look at the internal organization i.e. good board of directors or weak board as an example, and opportunities and threats exist in the external environment i.e. competition, public perception and the economy to mention just a few. Next in your marketing plan comes the creative and fun part. The Marketing Strategy consisting of the Target Market, and the important Marketing Mix, that consists of the Product/Service, Distribution, Promotion and Pricing strategies.

After you have reviewed each category and made your best marketing decisions you must establish a plan of action. Start with a list of actions needed for all the components of your plan such as timetables and delegation of responsibilities-who will be responsible for carrying out specific actions and when? The final element of a good plan is evaluative procedures that asks the question are you tracking your plan and the desired results and making adjustments if needed (ongoing evaluation).

In summary, an effective marketing plan should be in writing and follow an outline like we have recommended and should cover a twelve month period. It should articulate your message (mission) and the goals set should be achievable. Also, make sure you assign the resources necessary to achieve those goals. Most importantly it should outline with as much detail as possible the strategies needed to achieve the desired goals. Basically, this plan of action, that creates and implements a written marketing plan for your organization, literally and figuratively puts everyone on the same page as they say. I hope you will agree that Marketing and Communications are “The Cornerstones of Successful Fundraising” and mastering them will help you “Paint a Picture” that will effectively convey your unique organizational story to prospective donors.

Ed Lewis is Vice President of Development for the Alliance for the Arts in Thousand Oaks, California. He is also the Lead Instructor and Program Founder of the Marketing and Fundraising for Nonprofit Organizations professional certificate course offered at California State University, Channel Islands.