Tuesday, December 9, 2008

Shopping for a Cause

Check out Ken's interview in this BusinessWeek TV spot about cause-related marketing:


6 comments:

Anonymous said...

While the "100% proceeds" may work, too many charities are opening themselves up to "percent of sales" from online companies and allowing them to use their solid reputations and prestigious names for what may be a $100 per quarter. What a cheap price (value) to put on the mission and hard work of the staff and volunteers.

Some day - and I bet sooner than later - we will find this is nothing more than a marketing scheme and it is all for the good of the retailer. 1) with few exceptions (and that is the 100% programs) there is no way to validate the sales, the donor names and the true donations. 2) a retailer gets to use the name of a non-profit - thus promoting itself on the back of the good works of the organization. 3) you do not get to develop a relationship with the donor.

With the outrageous financial schemes, and out and out theft, being perptuated on the public by supposedly ethical companies, why would any agency sell itself so cheap? Well, you answer, it is a dollar we didn't have. Do you seriously think these companies will not cheat a non-profit? Not true! In addition, you have given the impression is that you only need a quarter, when in fact you need five dollars. You let the donor off the hook and you don't get to promote your mission or your outcomes.

I seriously believe it is time someone did an investigation into all these programs. What is there to stop anyone from skimming from those organizations and their clients who need it the most?

Amy Condit said...

I would love to see the appearance, but there isn't a link to the program. Would you be so kind as to add one if possible?
Thanks!

Ken Berger said...

Amy,

We have tested this again and if you click on the arrow you should see the video. Our IT staff suspects there is a problem on your end with software. Anyway, here is a direct link to the video - http://feedroom.businessweek.com/index.jsp?fr_story=800a2ecf5842fc5a30e00befb6ca8fcc61bd7c80

I hope that helps!

Ken Berger said...

Anonymous,

We are at best luke warm about cause related marketing. We also agree with you that there is a high likelihood of charities getting ripped off. It is always best to give directly to a charity. As always with TV/cable, my remarks were much more cautious and detailed than those highlighted. Our tips on cause related marketing can be found at - http://www.charitynavigator.org/index.cfm?bay=content.view&cpid=203

Elizabeth Bennett said...

I respectfully disagree with yur lukewarm response to cause related marketing. I am a passionate supporter of eBay Giving Works, where sellers can donate 10-100% of theselling price of an item to charities. Over the past three year, our small company has donated just over $30,000, all from listing 10% auctions and fixed price listings. Our family donatesto charities, but what we are able to give is dwarfed by what we have been able to raise for our causes through eBay Giving Works. We've also been able to introduce new donors to several of our causes.

I believe that the blurring of distinctions betwen the roles of for-profits and not-for-profits is one of the "megatrends" in the charity world. It is a way for small businesses to contribute, and for buyers to buy conscientiously.

Elizabeth Bennett
Africa Direct

Ken Berger said...

Elizabeth

We are lukewarm about this practice because of the tremendous danger of abuse by those who want to take advantage of consumers. There are some good and worthy arrangements, but most charities do not have the savvy or the leverage to take the best advantage of these arrangements. Instead, they are often exploited (as is the product buyer) and only a minute amount of money really gets to the charity.