There are 1.5 million non-profits with an estimated $2.6 trillion in assets. Some are huge operations including the United Way, Red Cross, American Cancer Society and the YMCA. Some lobby. Some compete against non-profits. They all compete against each other for donations. All face compassion fatigue, and many run into PR difficulties ... or worse (see Lance Armstrong and Livestrong). They may not be for profit and for the most part they are well respected, but they still need reputation and brand management in our 24-7-365 digital society.

1. Non-Profit Public Relations
COM 270
Kevin Brett
November 17, 2014

2. Non-Profits Can Be Big Business
• 1.5 million non-profits in the U.S.
• $2.6 trillion in total assets
• 501(c) (3) Tax Exempt
• American Cancer Society: $1 billion in
revenues; $966 million in expenses
• Salvation Army: $3.3 billion in revenues; $3
billion in expenses
• PBS: $1.8 billion in revenues; $1.5 billion in
expenses

3. Most Successful Non-Profits
1. United Way
2. Salvation Army
6. YMCA
9. Red Cross
12. Goodwill Industries
19. Boys and Girls Club
21. Shriner’s Hospital
22. American Cancer Society
23. Habitat for Humanity
25. Planned Parenthood

4. Myriad of Non-Profit Missions
• Improve Communities
• Protect the Environment
• Combat Poverty and Despair
• Enhance Education
• Lobbying
• Inform the Public (e.g., PSAs)
• Make the World a Better Place

5. Ethos: Source Credibility
• Academic or Expert: 67 percent
• Technical Expert: 66 percent
• Person Like Yourself: 62 percent
• Financial or Industry Analyst: 53 percent
• NGO representative: 52 percent
• Regular employee: 52 percent
• CEO: 43 percent
Source: 2014 Edelman Trust Barometer

6. Preferences and Choices
• Community Relations: $63,437
• Corporate Public Relations: $88,823
• Financial Communications: $117,233
• Non-Profit Communications: $62,275

7. The Competitive World of Non-
Profits
• Kaiser (non-profit) vs. CIGNA and Aetna in
managed care
• Non-Profits Competing Against Each Other for
Finite Charitable Funding and Govn. Assistance
• “Compassion Fatigue”
• Not immune from controversy: Susan G. Komen
Foundation and Planned Parenthood
• PBS and Planned Parenthood Funding

8. United Way: Too Much Money?
Too Much Temptation?
• United Way with 1,200 local offices with a
reported $103.2 million in assets; $94.2 million
in net income
• United Way CEO William Aramory defrauded the
charity for $1.2 million;
• 71-count federal indictment
• Six years in the slam.
• United Way - NFL

9. Non-Profits Are Not Immune to
Reputation and Brand Crisis
• Lance Armstrong
• “American Hero”
• Livestrong
• Nike
• United States Postal Service

10. Teaming with Corporate?
• Starbucks and EDF
• Teamed on an environmentally friendly
coffee cup (e.g., greater use of recycled
materials)

11. Still NGO Confrontation
• Demonstrations by Seattle Audubon and
Global Exchange
• Concern for Rain Forests and Species
• Starbucks is Not Unionized

12. Mild Arabica Coffee and the Rain
Forest
• Cultivating the World’s Second Largest
Commodity

13. Starbucks and Conservation
International Strategic Alliance
• CSR? Fiduciary Responsibility?

14. Starbucks/CI “Synergy”
• Due Diligence; Accumulated Trust
• CI “Quality Control”
• No Politically Correct Coffee Sales
• Starbucks Low-Interest Loans
• Chiapas Biosphere Reserve
• SBUX Influence on Supply Chain
• Planting of Shade Trees
• No Dumping in Rivers

15. Starbucks/CI Takeaways
• Proactive, collaborative working relationships
with NGOs can directly benefit fiduciary
responsibility and corporate social responsibility.
• They are not mutually exclusive terms of art.
• Inoculate or at least mitigate a MNE against
hostile NGOs.

16. Non-Profit Net Plusses
• NGOs Among Most Trusted in Society; 52
percent in 2014.
• Credible Third-Party Sources
• Not Responsible for Producing Profits
• Trying to Improve Society
• Humanitarian Orientation
• Protect the Environment
• Fighting Diseases