Companies Still Increasing Strategic Spending

In a recent article featured by the Nonprofit Times, companies are expected to spend $1.55 billion on cause partnerships during 2009, a 2.2 percent increase from the $1.52 billion invested in those programs during 2008, according to Chicago-based IEG, LLC. The amount spent in 2007 was $1.44 billion, according to IEG.

Cause-related programs still remain popular among corporate marketers due to their ability to support worthwhile organizations while also driving sales.

In fact, some nonprofits that deal with poverty, hunger and other issues directly impacted by the economy have found increased corporate interest. “Recent research has shown that consumers expect corporations to increase their support of causes in this economy,” said Dan Kowitz, vice president of IEG Sponsorship Consulting.

For example, anti-hunger organization Share Our Strength has posted a roughly 15 percent increase in revenue from cause marketing programs during the past year, signing new deals with AT&T, Inc., Hickory Farms, Inc. and others.

Among other recent deals, juice and apple sauce marketer Mott’s LLP this year partnered with Susan G. Komen for the Cure and Feeding America to launch national cause-marketing programs. The company is leveraging the Komen partnership with the Pink to the Core campaign, which features limited edition packaging. It is working with Feeding America on the Wake Up with Mott’s and Marcia Cross program, around which consumers can make a donation by sending a pre-recorded telephone message about the need to fight hunger from the actress to family and friends.

For each call, Mott’s donates $1 to the nonprofit, with a cap of $134,000 -- the cost of feeding one million people.

Companies also are increasingly leveraging sports and other types of sponsorships to promote their nonprofit partners. For example, Farmers Group, Inc., is using its new tie to the WNBA Los Angeles Sparks to promote its longstanding partnership with the March of Dimes. The insurer is activating the tie with the We Assist You Assist promotion that asks consumers to pledge a donation tied to the number of assists the team makes throughout the season. Farmers Group will match the total raised from fans.

Further demonstrating the popularity of cause sponsorship, causes trail only sports properties and entertainment tours and attractions when it comes to spending by property type, according to IEG. Read more here.

Think about a partnership as a possible way to fund your venture. There is an opportunit for a new partnership that could give the business great exposure and access to new clients, while giving your nonprofit start up dollars for your entrepreneurial venture.