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Philanthropy Today
               &
How A Cause Can Rise to the Top
State of the Nation
            •           Consumer trust in US business in the 35 to 64 age range
                                                           fell to 38% from 58%

                •        61% of US consumers are in favor of more government
                          control to solve problems like the credit crisis, global
                                                    warming, and energy costs

            •           60% of respondents said they need to hear information 3
                                                   to 5 times before believing it

            •           Only 17% of US consumers trust information from a CEO

                                                   • “Survival of the Fastest”
                    •     20 years ago, the US spent $614B on food, and $2B on
                                 technology (300:1 ratio).  In 2009, ratio is 1:1

                •        We process information 400x faster than our ancestors
                                                                 100 years ago
Mind of the Consumer
              •       68% would remain loyal to a brand during a
                           recession if it supports a good cause

                  •    71% say even in economic downturn, they
                          have given the same or more time and
                                         money to good causes

                         • 63% say companies spend too much
                        money on advertising in a recession and
                        should be putting more into good causes


                  •     76% say even in a downed economy, they
                       like to buy brands that make a donation to
                                                  worthy causes
Sponsorship Spending Trends

               • 51% of companies will decrease sponsorship giving this
                     year. Only 14% of sponsors plan to spend more, while 36%
                            said their budgets would stay the same as last year.

               40% of sponsors say they will decrease activation spending
                  this year compared to last, while 17 percent will increase it
                and 43 percent will hold their leveraging budgets steady from
                                                                           '08.

                     • 47% said they were seeking to get out of some of their
                         current sponsorships even though those deals were not
                                                       currently up for renewal.

                One bright spot…                60% of sponsors say they would consider
                                                         signing first-time sponsorships in '09.




          (Annual IEG/Performance Research Sponsorship Decision-makers Survey - 2009)
Mind of the CEO

              •65% of senior executives believe ROI from
              cause efforts increased in past few years



              •84% of executives      believe making broader
              contributions to the public good should
              accompany generating high return to investors



              •61% of executives say corporate citizenship
              makes a tangible contribution to their company’s
              bottom line
The Case for Cause
What exactly is Cause?

            “Cause” has become a catch-all term
             that ultimately describes innovative
                 ways in which companies and
                nonprofits integrate social and
            environmental issues into their brand
            to generate bottom-line business and
                        social benefits.
Why would Cause matter to a Company?
                     View the sponsoring company as a leader in
                     the community
                                                                     91%

                                                                     91%
                     Raises your opinion about the company
   Americans
    consider a                                                       81%

   company’s         Makes you want to buy that company’s product
 commitment to
social issues when
making decisions     View the company as wanting to give something
                                                                     96%

on where to work,    back to the community
where to shop and
  what to buy…
                     Promotes a good image for the sponsoring        97%
                     company




                                                                           8
CAUSE PAST: The Birthplace of Cause Marketing
               Twenty-five years ago, American Express embarked on an inspired,
                 but seemingly simple marketing initiative. To increase consumer
                    use of its card and recruit new users, the company partnered
                   with one of the country’s preeminent landmarks, the Statue of
                 Liberty. Each time a consumer used his or her American Express
                 Card during the course of the three-month campaign, one penny
                  was donated to the restoration of the historic site, and for each
                          new card application, American Express donated $1.00.


                  The company contributed $1.7 million to the Statue of Liberty
                      through the promotion and proved to the business world that
              aligning with a cause is a viable strategy to boost sales - consumer
          card usage increased by 27 percent and new applications
           grew by 45 percent. Through this memorable campaign, American
             Express coined the term “cause-related marketing,” which has today
                 evolved from a marketing tactic to a powerful business strategy.
CAUSE PRESENT: A BUSINESS STRATEGY
                                    What health, social or environmental issues are
                                   core to their business?
                                                        Products &
                                     What assets can they leverage to maximize
                                                         Services
                                   societal impact?

                                    What issues matter to their stakeholders?

                                               Social
                                    Whom do they want to reach? (both beneficiaries
                                            Engagement           Operations
                                   and stakeholders)
                                              “Cause”
http://www.youtube.com/watch?v=m    How is the issue affecting the marketplace?
9lytXuJ8wg&feature=channel
                                    How does this affect their company’s core values,
                                   mission, principles and policies?
CAUSE FUTURE:
BETTER BUSINESS. GREATER GOOD.
As the sea of pink ribbons washes over the country today, there
is no question that corporate support of causes is here to stay.
However, leading organizations are moving away from “assembly line
cause” (selecting an issue and partner off the shelf) as they evaluate the
shared value of how societal needs and business growth are intrinsically
linked. Companies must not only answer, “What do you stand for?” but also
“What do you do?”

In the future, companies will look beyond a single program
representing a discrete moment in time to a longer-term,
comprehensive approach that translates their values into action.
Cause is evolving to new models of social engagement and
global citizenship as companies evaluate opportunities to drive
change. Leaders will approach their Cause Branding initiatives
with renewed vigor, reasserting their responsibility to society,
not solely as philanthropy, but as a driving force of business
growth, including reputation management, license to operate,
new market development, product innovation and employee
recruitment and retention.
External Case Study:



     We developed the Dove Self-Esteem Fund to make real change in the way women and young girls perceive
    and embrace beauty. We want to help free ourselves and the next generation from beauty stereotypes.
    Too many girls develop low self-esteem from hang-ups about looks. Consequently, many fail to reach their
    full potential later in life. The Dove Self-Esteem Fund is an agent of change to educate and inspire girls on a
    wider definition of beauty.
    To make change possible, the Dove Self-Esteem Fund focuses its efforts to foster positive image-related self-
    esteem in two areas of activity:
    •The Fund develops and distributes resources that enable and empower women and girls to embrace a
    broad definition of beauty
    •The Fund provides needed resources to organizations that foster a broader definition of beauty


    It is our mission to continue to provide the tools and support to individuals, groups and organizations. We
    recognize that we alone can’t make changes in the way beauty is defined. We invite you to get involved.




             http://youtu.be/iYhCn0jf46U
In a Nutshell
• Successful Cause of the
  Future must bring:

     •   Employee Engagement
     •   Employee Retention
     •   Increased Sales
     •   Connection to Corporate Mission
     •   Connection to Consumers
     •   Innovation
     •   Ability to leave a legacy
Why AHA has a Competitive Advantage:
•   WE RESONATE: Heart Disease affects more people
    than any other illness.
•   WE EDUCATE AND EMPOWER: Our 2020 goals focus
    on prevention
•   WE HAVE A BROAD PLATFORM: nutrition, diet,
    exercise, advocacy, healthy spirit, women, children,
    families, research
•   WE ENGAGE EMPLOYEES: Heart Walk, Wear Red
    Day, NSWD
•   WE OFFER COUNSEL AND SOLUTIONS: MyStart!
    Online, Start Walking Program, Heart Check Up
•   WE HAVE HARD NUMBERS THAT SHOW SALES
    RESULTS AND BOTTOM LINE IMPACT: Jiffy Lube,
    Hamilton Beach, Reduction in Health Care Costs
Is a Cause Marketing Campaign worth it? YES!
Cause Marketing: American Heart Association

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Cause Marketing: American Heart Association

  • 1. Philanthropy Today & How A Cause Can Rise to the Top
  • 2. State of the Nation • Consumer trust in US business in the 35 to 64 age range fell to 38% from 58% • 61% of US consumers are in favor of more government control to solve problems like the credit crisis, global warming, and energy costs • 60% of respondents said they need to hear information 3 to 5 times before believing it • Only 17% of US consumers trust information from a CEO • “Survival of the Fastest” • 20 years ago, the US spent $614B on food, and $2B on technology (300:1 ratio). In 2009, ratio is 1:1 • We process information 400x faster than our ancestors 100 years ago
  • 3. Mind of the Consumer • 68% would remain loyal to a brand during a recession if it supports a good cause • 71% say even in economic downturn, they have given the same or more time and money to good causes • 63% say companies spend too much money on advertising in a recession and should be putting more into good causes • 76% say even in a downed economy, they like to buy brands that make a donation to worthy causes
  • 4. Sponsorship Spending Trends • 51% of companies will decrease sponsorship giving this year. Only 14% of sponsors plan to spend more, while 36% said their budgets would stay the same as last year. 40% of sponsors say they will decrease activation spending this year compared to last, while 17 percent will increase it and 43 percent will hold their leveraging budgets steady from '08. • 47% said they were seeking to get out of some of their current sponsorships even though those deals were not currently up for renewal. One bright spot… 60% of sponsors say they would consider signing first-time sponsorships in '09. (Annual IEG/Performance Research Sponsorship Decision-makers Survey - 2009)
  • 5. Mind of the CEO •65% of senior executives believe ROI from cause efforts increased in past few years •84% of executives believe making broader contributions to the public good should accompany generating high return to investors •61% of executives say corporate citizenship makes a tangible contribution to their company’s bottom line
  • 6. The Case for Cause
  • 7. What exactly is Cause? “Cause” has become a catch-all term that ultimately describes innovative ways in which companies and nonprofits integrate social and environmental issues into their brand to generate bottom-line business and social benefits.
  • 8. Why would Cause matter to a Company? View the sponsoring company as a leader in the community 91% 91% Raises your opinion about the company Americans consider a 81% company’s Makes you want to buy that company’s product commitment to social issues when making decisions View the company as wanting to give something 96% on where to work, back to the community where to shop and what to buy… Promotes a good image for the sponsoring 97% company 8
  • 9. CAUSE PAST: The Birthplace of Cause Marketing Twenty-five years ago, American Express embarked on an inspired, but seemingly simple marketing initiative. To increase consumer use of its card and recruit new users, the company partnered with one of the country’s preeminent landmarks, the Statue of Liberty. Each time a consumer used his or her American Express Card during the course of the three-month campaign, one penny was donated to the restoration of the historic site, and for each new card application, American Express donated $1.00. The company contributed $1.7 million to the Statue of Liberty through the promotion and proved to the business world that aligning with a cause is a viable strategy to boost sales - consumer card usage increased by 27 percent and new applications grew by 45 percent. Through this memorable campaign, American Express coined the term “cause-related marketing,” which has today evolved from a marketing tactic to a powerful business strategy.
  • 10. CAUSE PRESENT: A BUSINESS STRATEGY What health, social or environmental issues are core to their business? Products & What assets can they leverage to maximize Services societal impact? What issues matter to their stakeholders? Social Whom do they want to reach? (both beneficiaries Engagement Operations and stakeholders) “Cause” http://www.youtube.com/watch?v=m How is the issue affecting the marketplace? 9lytXuJ8wg&feature=channel How does this affect their company’s core values, mission, principles and policies?
  • 11. CAUSE FUTURE: BETTER BUSINESS. GREATER GOOD. As the sea of pink ribbons washes over the country today, there is no question that corporate support of causes is here to stay. However, leading organizations are moving away from “assembly line cause” (selecting an issue and partner off the shelf) as they evaluate the shared value of how societal needs and business growth are intrinsically linked. Companies must not only answer, “What do you stand for?” but also “What do you do?” In the future, companies will look beyond a single program representing a discrete moment in time to a longer-term, comprehensive approach that translates their values into action. Cause is evolving to new models of social engagement and global citizenship as companies evaluate opportunities to drive change. Leaders will approach their Cause Branding initiatives with renewed vigor, reasserting their responsibility to society, not solely as philanthropy, but as a driving force of business growth, including reputation management, license to operate, new market development, product innovation and employee recruitment and retention.
  • 12. External Case Study: We developed the Dove Self-Esteem Fund to make real change in the way women and young girls perceive and embrace beauty. We want to help free ourselves and the next generation from beauty stereotypes. Too many girls develop low self-esteem from hang-ups about looks. Consequently, many fail to reach their full potential later in life. The Dove Self-Esteem Fund is an agent of change to educate and inspire girls on a wider definition of beauty. To make change possible, the Dove Self-Esteem Fund focuses its efforts to foster positive image-related self- esteem in two areas of activity: •The Fund develops and distributes resources that enable and empower women and girls to embrace a broad definition of beauty •The Fund provides needed resources to organizations that foster a broader definition of beauty It is our mission to continue to provide the tools and support to individuals, groups and organizations. We recognize that we alone can’t make changes in the way beauty is defined. We invite you to get involved. http://youtu.be/iYhCn0jf46U
  • 13. In a Nutshell • Successful Cause of the Future must bring: • Employee Engagement • Employee Retention • Increased Sales • Connection to Corporate Mission • Connection to Consumers • Innovation • Ability to leave a legacy
  • 14. Why AHA has a Competitive Advantage: • WE RESONATE: Heart Disease affects more people than any other illness. • WE EDUCATE AND EMPOWER: Our 2020 goals focus on prevention • WE HAVE A BROAD PLATFORM: nutrition, diet, exercise, advocacy, healthy spirit, women, children, families, research • WE ENGAGE EMPLOYEES: Heart Walk, Wear Red Day, NSWD • WE OFFER COUNSEL AND SOLUTIONS: MyStart! Online, Start Walking Program, Heart Check Up • WE HAVE HARD NUMBERS THAT SHOW SALES RESULTS AND BOTTOM LINE IMPACT: Jiffy Lube, Hamilton Beach, Reduction in Health Care Costs
  • 15.
  • 16. Is a Cause Marketing Campaign worth it? YES!