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Non-Profits and the Benefits of Affinity Marketing

I’ve already mentioned how incorporating good business practices like accounting transparency and shared systems can increase the efficiency and life expectancy of non-profit organizations. Another method to consider in today’s challenging economy is affinity marketing, a tool that can help NPOs fundraise without further burdening their supporters.

Affiinity marketing allows an NPO to partner with for-profit organizations which, through their own business models, provide a “give-back” on the proceeds of every purchase made by the organization’s membership base. Even everyday items like wireless phone service and insurance can generate a significant amount of revenue.

So why is this market so untapped?

Non-profits have misconstrued the platform and its effects. Affinity marketing is a viable tool, as long as its best uses are understood and implemented. For example, NPOs must take an active role in communicating any new marketing program to its constituents. After all, the last thing one would want is to alienate supporters when trying to alleviate their financial pressure.

Whatever role affinity marketing takes, it should of course tie into an organization’s mission, and that message should be clearly communicated in the quality and widespread appeal of the chosen product or service. With broad appeal to a large cross-section of their membership, the marketed product both makes sense and creates a built-in test audience. And most importantly, while this type of marketing may seem like an easy solution, it can never completely replace other methods of fundraising like capital campaigns, annual pledge drives, and fundraising galas. Instead, it complements them in a results-driven manner that has potentially long-lasting effects on the fiscal health of a non-profit organization.

  • July
  • 31st, 2009
  • 4:22 pm

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One Response to “Non-Profits and the Benefits of Affinity Marketing”
  1. We totally agree! As a matter of fact we provide a turnkey , private label affinity program for NP’s. NP’s provide increased Donor value as well as a new revenue stream.

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