Über die Autorin bzw. den Autor

John J. Burnett (Denver, CO) is a Professor of Marketing and Director of the DU Marketing Roundtable at the Daniels College of Business at the University of Denver. During his 37-year career as a university professor, and tenure at six universities, he has worked with such nonprofit organizations as The Boys Club of America, The American Red Cross, Lubbock General Hospital, the National Parks Service, the Denver Zoo, and Easter Seals. Burnett has authored/co-authored 16 books, including the number one textbook in advertising. He is one of a handful of authors who have conducted primary research on the disabled consumer. The impetus for this book is the one-half-day workshop he developed 15 years ago and has presented numerous times to nonprofit marketers, entitled Marketing for Nonprofits: A Strategic Approach.

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What does it take to successfully market your nonprofit organization? How can you court donors, get the word out to those who need your services most, and expand your nonprofits' influence? Rich with practicality, Nonprofit Marketing Best Practices shows you all the best practices and solid marketing principles you need to satisfy customer needs, grow your organization by marketing its vision, and sustain the success of your organization.

Nonprofit marketing expert John Burnett draws on his wide experience to demonstrate how services marketing-which represents 65% of our gross domestic product-functions as the foundation for  nonprofit marketing planning. Stressing the importance of the adjustment necessary when marketing intangible products rather than tangibles, he asserts that nonprofit marketing must be approached differently than traditional marketing and provides primary data collected from a cross-section of practicing nonprofit marketing managers to highlight this  point.

Making the case for a radical change in the way nonprofits"do" marketing, this hands-on guide walks you through the various marketing elements that work together to create strategy. These assorted marketing areas and their competitive strengths and weaknesses are defined and explained with a focus on how to best "mix" marketing tools in a tactical, integrated plan. Beginning with an overview of the nonprofit sector and the challenges it faces, Nonprofit Marketing Best Practices then discusses the marketing planning process and the preliminary tasks of developing a plan and concludes with the specific tactics available to you as marketing planner. This thorough coverage ensures you a complete plan to creating, executing, and evaluating a marketing program for your nonprofit that is effective and efficient from start to finish.

Brimming with exercises and applications to help you implement the concepts discussed, this user-friendly workbook uniquely introduces nonprofit marketing professionals to a proven set of principles and practices for creating marketing strategies and tactics that are more efficient, competitive, and successful. If you are charged with breathing new life into your nonprofit's existing marketing plan, nonprofit Marketing Best Practices will give you the tools, know-how, and confidence you need to succeed.

Aus dem Klappentext

What does it take to successfully market your nonprofit organization? How can you court donors, get the word out to those who need your services most, and expand your nonprofits' influence? Rich with practicality, Nonprofit Marketing Best Practices shows you all the best practices and solid marketing principles you need to satisfy customer needs, grow your organization by marketing its vision, and sustain the success of your organization.

Nonprofit marketing expert John Burnett draws on his wide experience to demonstrate how services marketing-which represents 65% of our gross domestic product-functions as the foundation for nonprofit marketing planning. Stressing the importance of the adjustment necessary when marketing intangible products rather than tangibles, he asserts that nonprofit marketing must be approached differently than traditional marketing and provides primary data collected from a cross-section of practicing nonprofit marketing managers to highlight this point.

Making the case for a radical change in the way nonprofits"do" marketing, this hands-on guide walks you through the various marketing elements that work together to create strategy. These assorted marketing areas and their competitive strengths and weaknesses are defined and explained with a focus on how to best "mix" marketing tools in a tactical, integrated plan. Beginning with an overview of the nonprofit sector and the challenges it faces, Nonprofit Marketing Best Practices then discusses the marketing planning process and the preliminary tasks of developing a plan and concludes with the specific tactics available to you as marketing planner. This thorough coverage ensures you a complete plan to creating, executing, and evaluating a marketing program for your nonprofit that is effective and efficient from start to finish.

Brimming with exercises and applications to help you implement the concepts discussed, this user-friendly workbook uniquely introduces nonprofit marketing professionals to a proven set of principles and practices for creating marketing strategies and tactics that are more efficient, competitive, and successful. If you are charged with breathing new life into your nonprofit's existing marketing plan, nonprofit Marketing Best Practices will give you the tools, know-how, and confidence you need to succeed.

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Nonprofit Marketing Best Practices

John Wiley & Sons

Chapter One

"Because the purpose of a business is to create a customer, the business enterprise has two-and only two-basic functions: marketing and innovation. Marketing and innovation produce results. All the rest are costs." -Peter Drucker

According to the experts who keep track of these things, Hurricane Katrina is the worst catastrophe to befall the contiguous United States since the Civil War. While all the numbers are not yet final, we do know that over one million residents of the Gulf Coast region were displaced. Over 1,100 died. And, nearly 275,000 have sought jobless benefits.

Sadly, a term long used in family counseling, the fractured family, has now been applied to the more than 4,000 kids who have been separated from their families. Fortunately, several experienced investigators have volunteered to find and reunite these children via organizations such as www.missingkids. com and The National Center for Missing & Exploited Children. As usual, there are a handful of evil individuals who have illegally taken some children as their own or perpetrated other scams and frauds.

Katrina also brought out the basic humanity of Americans and individuals worldwide. Over $1 billion was donated by people rich and poor. In addition, thousands of hours have been donated by volunteers who distributed food and water, drove buses, offered their homes, and gave comfort, both professional and personal.

Many corporations have also weighed in to help. Most notably, Wal-Mart had 45 truckloads of relief supplies ready to ship before Katrina made land-fall. Wal-Mart ultimately shipped 1,900 trailer loads of emergency supplies to the affected areas. It also pledged more than $22 million in contributions to relief efforts and was operating free stores in several evacuation centers, where it also donated 150 Internet-ready computers to help reunite loved ones separated by the disaster. Many other companies such as Home Depot, General Electric, Anheuser-Busch, and Whole Foods Market played a prominent role. Over 150 companies pledged at least $1 million each.

Clearly, Katrina will impact us all for decades do come. We are left with many unanswered questions. How are we going to pay the estimated $200 billion required to put the Gulf Coast back on its feet? Will Congress raise taxes or cut programs? If the latter, which social programs will be reduced and by how much? How will other parts of the country provide the social services needed for former residents who will never return to the Gulf Coast? If taxes are raised, or existing cuts are not reinstated, will that mean people will be less willing to contribute to nonprofits? Will they be less likely to volunteer? What would be the result if one or more other natural disasters struck the United States or other parts of the world? Does a U.S. crisis mean that tsunami relief donations in the future will not be forthcoming? Nonprofits tend to deal with tough questions such as these.

Ultimately, Katrina highlighted the many areas where our government and the various help agencies were unable to forecast accurately or in time. Yet the Louisiana State University Hurricane Center predicted the disaster years earlier. Even a few days before Katrina hit, the Center warned that the levees would not hold, the pumps were not adequate, and that immediate evacuation was needed. Did the various governments not know that the affected parishes were primarily populated by minorities who did not have the capacity to evacuate? Thus, it comes down to the historical debate of whether the problem was poor information or bad implementation or both.

INTRODUCTION

The point of this discussion is not to resolve this debate but to indicate that traditionally nonprofits have often been caught in the middle. Quite simply, nonprofits meet the needs of the world's inhabitants (animal, vegetable, and mineral) that governments and private industries cannot or will not meet. Hurricane Katrina illustrates that the gap between the observed social needs and satisfied social needs is vast and that the role played by nonprofits worldwide will increase for reasons noted later in this chapter.

The intention of this book is to offer nonprofit marketing managers a set of principles and practices that will make them more effective, competitive, and successful. After working with nonprofits for twenty years, it is clear to me that an answer for many of their problems lies in marketing. In addition, marketing can offer a more reliable forecasting system while also providing an implementation process that will work for nonprofits of all sizes and missions. Moreover, this book offers an important advantage. Unlike existing books, which provide an overview of basic marketing with nonprofit examples thrown in where appropriate, this book incorporates primary data collected from a cross-section of practicing nonprofit marketing managers. It also incorporates the strategic division of products into two categories-goods products and service products. The latter reflects the non-profit sector. Fortunately, services marketing is a facet of marketing that has produced a unique set of principles and practices that tend to work better within service (nonprofit) organizations. These principles and practices are integrated throughout this book to ensure that it represents nonprofit marketing as it should be practiced.

THE PURPOSES OF NONPROFIT ORGANIZATIONS

Early in the history of America, nonprofit institutions served marginal roles. We then believed that the government could and should discharge all major social tasks, and that the role of business and nonprofits was to supplement governmental programs where necessary. Today, nonprofits support far more initiatives in support of specific needs. Nonprofits are now America's largest employer and facilitate the fundamental American commitment to responsible citizenship. They represent the most important human change agent, bringing education to the unlearned, cures to the unhealthy, and integrity to the shameful.

Religious institutions were the first voluntary associations having evolved out of a religious tradition of serving community needs building on teachings from the Torah, New Testament, Koran, and other holy books written thousands of years ago. Historically, the activities associated with nonprofit organizations such as healthcare, religion, the arts, and social welfare activities were organized and administered by nonsecular bodies.

Tax exemption laws in the United States had their roots in the laws passed by the British Parliament in 1601. These laws set out a list of legitimate objects of charity and established a procedure for accountability for charitable fraud. The earliest charitable organization in the New World was Harvard College, established in 1863, which was free to attend. Following the American Revolution, the established governments in the former colonies, now states, adopted a new doctrine of not funding religious institutions. Private organizations were created to provide services funded through donations and purchases of services rather than through direct and indirect grants from government.

The number of nonprofit organizations grew dramatically between the end of the Civil War and 1920 as corporate America and private wealth, along with religious congregations, financed the growth of universities, libraries, hospitals, professional organizations, and private clubs. In 1894, the Congress enacted the first federal income tax and provided an exemption for corporations, companies, or associations organized and conducted solely for charitable, religious, or educational purposes.

More recently, research conducted in the late 1990s indicated that the nonprofit sector did undergo rapid expansion during the 1977-1996 period, but that this expansion was not fueled by increases in charitable donations. Rather, the increase in revenues by social service organizations came from commercial income, such as from fees, investment income, and sales of products. Despite the changing character of nonprofits during this period, this sector increased at a rate much faster than the economy.

Today, the modern charitable organization bears little resemblance to the typical charity of the nineteenth century. The challenges for funds are immense, as is the growth of new competitors. Technology has allowed nonprofits to compete worldwide, partnered with a wide variety of government regulations. Yet, nonprofits remain the touchstone for a society's moral agenda. And, yes, there is a reason to be optimistic. Peter Drucker, the father of management and grandfather of marketing, posits that nonprofits remain the most successful business format, given their inherent disadvantages. He notes two success keys in this new environment. First, nonprofits must "convert donors into contributors." Relationships must be formed. Second, nonprofits must "give communities a common purpose."

What Is a Nonprofit Organization?

Few categorical concepts have such a vast array of synonyms and extensions as that of nonprofits or not-for-profits (NFP). Partly this may be a result of the range of organizations that call themselves nonprofits. A nonprofit can be as small as a one-person organization that wants to save a corner park, to the behemoth of the Bill & Melinda Gates Foundation with a budget of billions and a staff of hundreds. A quick review of the definitions of the word "nonprofit" found on Google show a common range of elements:

A term describing the Internal Revenue Service's designation of an organization whose income is not used for the benefit or private gain of stockholders, directors, or any other persons with an interest in the company. A nonprofit organization's income must be used solely to support its operations and stated purpose. (www.indianagrantmakers. org/give/glossery.html)

Means any corporation, trust, foundation, or institution which is entitled to exemption under section 501(c)(3) of the Internal Revenue Code, or which is not organized for profit and no part of the net earnings of which insure to the benefit of any private shareholder or individual (except that the definition of "nonprofit organization" at 48 CFR 28.30 shall apply to the use of the patent clause at Section 600.27). (www.1.pr.doe.gov/f600a3.html)

An organization can be organized with the Internal Revenue determination under several categories of nonprofit status (cannot pay individuals, do not pay taxes on income). (www.delewarecountrybrc.com/ glossaryterms.html)

A nonprofit organization (often called "non-profit org" or imply "nonprofit" or "not-for-profit") can be seen as an organization that doesn't have a goal to make a profit. It may be entirely funded by voluntary donation.

Nonprofit institutions exist to benefit society (i.e, serve the public interest),

regardless of whether profits are achieved.

Salamon and Anheir (1992) posit that the nonprofit sector is a set of organizations that are:

formally constituted;

nongovernmental in basic structure;

self-governing;

non-profit-distributing;

voluntary to some meaningful extent

As we move from one country to another, complexity and purpose vary. In Japan, for instance, the nonprofit corporate system, as written in the Japanese civil law, has a complicated divisional structure. Within the civil code, public interest corporations are separated among their fields, with categories such as school corporation, social welfare corporation, religious corporation, and so forth. Accordingly, the NPO Law specifies an organization can become a "specified nonprofit corporation" if it:

is formed principally to implement one of the specified activities like: art, culture community safety, etc.

is not formed for generating profit

has paid staff members less than one-third of the total staff

is not involved in religious teaching or preaching, or in performing religious ceremonies

is not for promoting, supporting, or opposing a political ideology, political party, a person holding a public office, or candidate for a public office

is not operated for the interest of a specified individual or corporation

is not used for a specified political party

has provisions of acquisition and loss of membership, which are not unreasonable

It is evident that many of the U.S. nonprofits would not qualify in Japan.

Australia defines nonprofit institutions (NPIs) in the following way:

NPIs are legal or social entities created for the purpose of producing goods and services whose status does not permit them to be a source of income, profit, or other financial gain for the units that establish, control, or finance them. In practice, their productive activities are bound to generate either surpluses or deficits but any surpluses they happen to make cannot be appropriated by other institutional units. The articles of association by which they are established are drawn up in such a way that the institutional units which control or manage them are not entitled to a share in any profits or other income which they receive. (SNA 93, para. 4.5-4)

Clearly, the concern in Australia is the management of "profits." Given the varied definitions, what are the characteristics shared by all nonprofits operating worldwide? They are as follows:

The primary motive of a nonprofit organization is not financial gain.

If profits are achieved they cannot be paid to any private shareholders or individuals.

Sources of revenue may be obtained from donations, grants, fund balances, and perhaps sales.

Taxes are not paid as long as the organization is approved by the governmental guidelines and continues to meet governmental guidelines.

Accountability and success are determined by the Board vis--vis the mission statement, as well as the senior staff (who may or may not also serve on the board).

In sum, a nonprofit organization is not prohibited from making a profit, but there are limitations on what it can do with its profits. There are also limitations on how it can make money - and it must make money in accordance with its nonprofit purposes. Thus, the agenda (mission) for the National Rifle Association is the antithesis of the Brady Campaign to Prevent Gun Violence. Yet, they are both legitimate nonprofits.

In general, U.S. nonprofit organizations receive two primary benefits. First, all organizations can receive tax-deductible contributions from businesses and individuals. Second, most organizations are exempt from income tax and property tax, and some are exempt from sales tax.

To receive these benefits, nonprofit organizations must: (1) obtain a license from the Internal Revenue Service, and (2) file a tax return if their annual revenue is greater than $25,000.

CLASSIFYING NONPROFITS

Definitions and classification are, in a sense, two parts of a related process. The first specifies what the entities in a group have in common, and the second spells out the ways in which they nevertheless differ. Broadly speaking, two basic issues have to be settled in the design of any classification system. The first of these is the unit of analysis to be used; and the second is the basis of the classification, the central variable, or variables, in terms of which entities are to be differentiated from each other. In the case of Japan, for example, the classification is a legal designation known as Charitable Trusts (koeki shintaku), and there is no need to create nonprofit classifications.

At the macro level we can consider three kinds of organizations: the government sector, the private sector, and the voluntary sector. The voluntary sector and nonprofit organizations are synonymous terms. The distinction is somewhat obvious and is illustrated in Exhibit 1.1, which shows how each participated in the Hurricane Katrina disaster.

(Continues...)

Excerpted from Nonprofit Marketing Best Practicesby John J. Burnett Copyright © 2007 by John Wiley & Sons, Ltd. Excerpted by permission.
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