Cause marketing is a marketing strategy that involves a partnership between a nonprofit organization and a for-profit business. In this partnership, the for-profit business agrees to donate a portion of its sales or profits to the nonprofit organization in exchange for the nonprofit's support in promoting the business's products or services.
Cause marketing has become increasingly popular in recent years, and for good reason. According to Global Giving, an estimated $1.2 trillion opportunity exists for global brands that make their sustainability efforts clear in their marketing.
That's a whole lot of money!
Let's dig into how it can help your nonprofit:
Increase Visibility: Cause marketing can help your nonprofit reach a larger audience than you would have been able to on your own. When a for-profit business partners with your nonprofit, it brings its own audience, which can help your nonprofit gain visibility and attract new supporters.
Generate Revenue: Cause marketing can also help your nonprofit generate much-needed revenue. When a for-profit business agrees to donate a portion of its sales or profits to your organization, it can provide a significant source of funding that can be used to support your programs and initiatives.
Builds Credibility: Cause marketing partnerships can help build your credibility. When the right brand aligns itself with your cause, it can help legitimize your organization and build trust with potential supporters.
Take Starbucks, for example. It has a longstanding partnership with the The Global Fund, a nonprofit fighting AIDS, Tuberculosis, and Malaria. For every (RED) Starbucks product sold, the company donates a portion of the proceeds to the Global Fund. Over the years, Starbucks has raised millions of dollars for this organization.
In all, cause marketing can be an effective way for nonprofits to gain financial support, visibility, and credibility. By partnering with a for-profit business, they can leverage the company's resources and audience to promote their vision.
If you're looking for ways to support your organization's mission, cause marketing could be a powerful tool to consider.