Marketing for Impact in the Non-Profit Sector

I serve on the Board for STAR Foundation, a local non-profit that helps people move from subsidized living to self sufficiency.  I have loved the experience because it allows me to spend some time each month using my marketing talents to help others AND because it allows me to spend time with the two of the most loving and giving people I have ever met, Ellen Murphy and Katie Orrel, the sisters who are the heart of the organization.  The experience of serving on the STAR Foundation Board has made me think a lot about how we raise money to solve large social problems like poverty, oppression, childhood obesity and disease.

I recently saw a speech by Dan Pallotta on TED Talks titled The Way We Think About Charitable Giving is Dead Wrong.


Dan highlights 5 areas where he postulates that we over constrain non-profit's ability to maximum impact.
CEO Compensation
Marketing And Advertising
Taking Risks to Pursue New Donations
Time for Return on Investment
Profit to Attract Capital
He states that it is our resolute dedication to keep cost at a minimum has hampered our ability to raise money and make a real difference in tackling the biggest social problems facing our world.  If we freed ourselves to promote our non-profits with the same fervent vigor that we promote leading consumer brands and companies that we could substantially increase charitable giving and therefore the amount of money that is available to solve the world's biggest social problems.

It is an intriguing concept and at least directionally I would tend to agree.  It is not unlike the problem a manager in a public company can face when looking at how she wants to spend her marketing budget dollars.  Does she spend the money with a focus on the short term target numbers and therefore invest in things that offer a shorter and smaller ROI or does she put those budget moneys towards long range (multi-year) initiatives with a potential for much higher return but no contribution towards her current fiscal targets.  It can be a hard choice.  A savvy leadership team may be willing to accept that delay in gratification for the greater good but stockholders (like potential non-profit donors) may not be willing to keep the faith in the vision for long enough to see it come to fruition.

Me with two of the most beautiful souls I know, Ellen and Katie.