2015CorpFundTrends_021915

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2015 CAUSE ALLIANCE TRENDS

Transcript of 2015CorpFundTrends_021915

2015 CAUSE

ALLIANCE TRENDS

2014 was somewhat of a mixed bag in terms of cause alliances. From ice buckets to epidemics, new causes demanded our attention while traditional fundraising tactics rose to levels not seen since before the Recession of 2008. Consumers and corporations alike stepped up big in 2014 to donate, take action or challenge others to do the same. Will this enthusiasm continue into 2015? Since cause alliances straddle two sides of the fence, we took a look at the nonprofit and corporate sectors to help identify expected trends for 2015. Our Top 10 Cause Alliance Trends for 2015 represent those that continue to growth within the nonprofit industry, as well as general business trends sure to shape our niche.

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Data Driven Cause Alliances

User-Generated Content

Employee Engagement

Emerging Industries

Relevant Impact

TOP 10 TRENDS Cause Alliances

2015

Importance of Storytelling

Video Content Usage

Peer-to-Peer Connections

International Expansion

Franchise Growth

TREND ONE: Data-Driven Cause Alliances Globally, we produced over 3 Zettabytes of data in 2013. Even more surprising is that 90% of all the data in the world has been generated over the last two years. Data is here, and it’s here to stay. The usage of the data we produce and collect, and therefore how we translate that data, will become more important to building cause alliances in 2015. 85% of corporations have big data initiatives, but only a quarter of nonprofit organizations use data to make program decisions. There is a “data disconnect” between these two worlds. In 2015, we hope to see this divide lessen.

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TREND APPLICATION: Data-Driven Cause Alliances

CAPTURE. Any and all data that you can. From your constituents to your mission, from your partners to your events, data capture is the essential foundation to building data-driven cause alliances. ANALYZE. Setting specific goals for your data analysis can help to identify how to segment your data across multiple variables. Working with other departments at your organization can often open doors for expanded data analysis opportunities. LEVERAGE. Translate your data into points of differentiation. Infuse data points into your mission story to perk the ear of future partner prospects.

BASIC DONOR DATA Our donors are: •  70% women •  35-50 years of age •  HHI over $100K •  College-educated •  Live in the Southeast

ADVANCED DONOR DATA Our donors are: Trendy moms who are super shoppers. They like to purchase baby products and fine jewelry, are craft enthusiasts who are more likely to shop at Michaels, Home Depot and Babies R ‘Us. They are wealthy, college-educated conservatives who like to donate to the arts and education.

EXAMPLE:

TREND TWO: Importance of Storytelling Storytelling is as old as time. Everyone loves a good story, and everyone has a great one to tell. Storytelling is not a new concept to marketing, or even fundraising. However, the importance of storytelling and the components of what might be considered the “smarter story” is what we see as a trend for 2015. Your traditional story might involve emotion, words, personal experiences. The “smarter story” has a strong foundation of numbers and impact statements (a nod to that Data trend).

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TREND APPLICATION: Importance of Storytelling

BASIC DONOR DATA Brand Value and Prestige

Mission Messaging

Emotional Sentiment

Community Impact Statements

Value of Tangible Assets

Return on Investment

Win for Consumers + Employees

Key Data Points & Statistics

A “Smarter Story” would ideally consist of 50% emotional brand messaging, and 50% data, statistics and measurable impact for the corporate partner. Increased inclusion of the last 50% is trending upward for 2015.

TREND THREE: Video Content Usage Whether it’s data visualization, storytelling or a recognition tactic, video content is thriving and will continue to grow in 2015. •  Usage of the photo-sharing tool Instagram increased 1,179% in six months. •  Just one month after the introduction of Facebook timeline for brands, visual content — photos

and videos — saw a 65% increase in engagement. •  Posts with videos attract 3 times more inbound links than plain text posts.

With new multi-channel networks like Maker Studios and Good Amplified, nonprofit organizations will now have several platforms to publish and monetize their video content to potential supporters outside of their current networks. Affordable DIY video creation sites like Visual.ly make it easy for any nonprofit organization to develop sophisticated video content that will attract individuals or corporate partners.

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TREND APPLICATION: Video Content Usage 5 BEST PRACTICES

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Blend Data and Emotion Video content is a powerful way to tell your story. Don’t forget that your mission and those you serve isn’t your whole story. Infuse tangible data points that speak to your community impact and the value of supporting your cause.

Use Real Footage Infographics and photography is wonderful, but if you have the resources to capture video footage of real mission-served individuals and communities, a “moving picture” is really worth 10,000 words.

Only Part of the Picture A powerful video can do a lot for your cause, yet it still requires context. Remember that all you do cannot be condensed into a few minutes. Use other communications to expand upon your story and clarify your mission.

Evolution is Necessary Your work, your impact and your goals are ever-evolving, and so should your communications – including a video. Leave room in your budget and timeframe to evolve video content as needed, and when appropriate.

Include a Call-to-Action In the social good space, our mission is always to incite action – whether a donation, pledge or participation. Infuse your call-to-action into the script, through dynamic content or interactive video capabilities (see Mozilla Popcorn Maker).

TREND FOUR: Employee Engagement Whether a corporation is looking to increase employee retention rates or peak morale, community engagement is crucial to their bottom line. 78% of business leaders rate retention and engagement urgent or important. 90% of human resources professionals say that pro-bono volunteering is an effective way to develop leadership skills.   Employees are now looking for and expecting their employers to offer community engagement opportunities for them and their families. 71% of employees felt more positive about their company as a result of employee volunteer programs.     In 2015, most corporations will consider employee engagement an essential “must-have” as part of any nonprofit partnership.

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TREND APPLICATION: Employee Engagement

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RIGHT-FIT

EMPOWERING OPTIONS

MEASURED IMPACT

INCENTIVES

COMMUNICATION

Consider these five “How-to” tips when developing and managing attractive employee engagement opportunities for your corporate partners.

The American workforce is aging, with an influx of Millennial workers. Determine if your cause speaks to them, and customize opportunities that specifically activates their interests.

Giving employees the ability to choose how they engage with your cause could increase participation rates. Look beyond traditional giving options, toward unique volunteer, advocacy or ambassador choices.

Corporations and their employees are more likely to participate in programs where they can see tangible results from their actions. Ensure that measurable outcomes are built-in to any employee engagement strategy or specific opportunity.

Employee engagement rates could increase by more than 50% if employees are incentivized for their actions. Financial incentives, recognition events, prizes, certificates, team awards or simple rewards like gift cards or even a special t-shirt have been effective in heightening employee activation around a cause.

Employees want to hear about engagement options regularly. A quarterly e-newsletter is a great way to keep them updated. Employees enjoy updates on how campaigns are going while they are happening. Consistent weekly updates are most effective through a variety of mediums. Employees are perhaps most interested in communications about what impact their actions had on your mission.

TREND FIVE: Peer-to-Peer Connections Peer-to-Peer events (your traditional runs, walks, rides) have been popular and growing for over a decade. We see the type of interaction that these platforms provide as a big trend for the new year, and expect they will manifest through different mediums. With the growth of social gaming, ride-sharing and crowdfunding, it proves to us that despite technology, people still seek out people – online or offline. They want experiences that connect them to others. Whether it’s an in-person 5k for breast cancer, a Walking club for heart disease, or an online social game that attracts millions of women and children each year, they all have one thing in common – peer-to-peer connections. Corporations are drawn to people (that’s their consumer!). They increasingly are seeking experiential opportunities to connect with them as a brand, and connect their consumers to each other.

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TREND APPLICATION: Peer-to-Peer Connections

1 Humble Beginnings Each movement started as a dare, bet, idea or challenge amongst a few friends as a way to give back to a cause they were passionate about.

2 Connectivity Various events, social media applications and forums have been developed to keep their supporters connected and communicating.

3 Differentiating Each movement has a unique call-to-action activity that differentiates it from any other cause or event in the marketplace.

4 Accessibility The call-to-action activity is easy and accessible for various genders and age groups. While each have a concentrated campaign timeframe, participants can also activate year-round

5 Scope These industry-leading movements engage people from around the globe, on every continent, and in no less than 20 countries worldwide.

$ 1 1 5 M r a i s e d i n 2 0 1 4 $ 74 M +

r a i s e d i n 2 0 1 4 $38.9M r a i s e d i n 2 0 1 4

7 2 0 , 0 0 0 + p a r t i c i p a n t s

2 1 c o u n t r i e s

28 million people e n g a g e d

N e a r l y e v e r y country in the w o r l d

4 5 5 , 0 0 0 + p a r t i c i p a n t s

2 2 c o u n t r i e s

S u m m e r N o v e m b e r M a r c h

COMMON ATTRIBUTES

TREND SIX: Emerging Industry Categories Certain industries are growing at record rates, and will provide immense opportunities for cause alliances in 2015. These emerging industries include: -  Sharing Economy Companies (i.e. Brands like Uber, Airbnb, Taskrabbit, Waze) -  Activewear (With traditional clothing brands like Forever 21, H&M and the Gap

branching out into activewear and sports apparel lines) -  Wearables (i.e. Sony Smartband, Jawbone Up24, Nike Fuelband, FitBit) -  E-Commerce Goes Brick-and-Mortar (i.e. Bonobos, Birch Box, Rent the Runway) -  Renewable Energy (With brands like Apple, Motorola and the LEGO Group

committing to using renewable energies for production) -  Consumer Healthcare (with dedicated Consumer Healthcare departments at

brands like GSK, Pfizer, Sanofi and Johnson & Johnson)

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TREND APPLICATION: Emerging Industry Categories

STANDOUT PARTNERSHIPS FROM 2014

(click on video to view program details and impact) (click on video to view program details and impact)

Key Program Elements: •  In-app Integration •  Event Fundraising •  Rider Donation •  Corporate Donation

Key Program Elements: •  Sports Sponsorship Integration •  Event Activation & Public Relations •  Special Edition Product •  Corporate Donation Upon Purchase

TREND SEVEN: International Expansion A recent CFO research study found that 95% of U.S.-based companies expect to have customers in at least two foreign countries over the next three years. Two-thirds expect international markets to be among their company’s top priorities over that same time frame. The U.S. government estimates two-thirds of the world’s purchasing power are in foreign countries. From small and mid-size business to Fortune 500 companies, international expansion is a growing business trend for 2015 and beyond. Cause marketers for NGOs might find this comforting. Now more than ever will international nonprofits have the opportunity to build cause alliances in other countries and expand their U.S.-based relationships worldwide. At the same time, American consumers still demand community support remain local. The opportunity for corporations to create mutiple layers of cause alliances that impact not only the local market but the global audience through multiple partners should have causes thinking differently about their pitch.

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TREND APPLICATION: International Expansion

TREND EIGHT: Relevant Impact With the introduction and continued growth of benefit corporations like Tom’s, Warby Parker and Ben & Jerry’s (recently B-Corporation certified), consumers are now conditioned to expect measureable impact as a return for their purchases. Most nonprofit organizations have followed suit and are now crafting clear impact statistics that communicate their mission. We all know that $1 may help to give one full day of water to 10 children in Africa, for example. However, now that we are all statistically-rich, a question arises: “How do we differentiate our impact messaging from others and establish relevancy for the average donor or corporation?” Going beyond what that $1 provides, and communicating how that impact is personally relevant to an individual (or corporation) will elevate engagement levels. Individual donors gravitate toward and appreciate the connection between action, impact and relevancy, while corporate partners consider it a “must-have” quality of a long-term nonprofit partner.

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TREND APPLICATION: Relevant Impact

IMPACT RELEVANT IMPACT

1 in 5 kids in America struggles with Hunger. 2.5 billion people around the world do not have access to adequate sanitation. Every year approximately 8 million people die from cancer worldwide.

There could be 6 kids struggling with Hunger in your child’s

classroom each day.

For every person watching the Super Bowl right now, there are 5

people in the world without access to clean water.

Three times the amount of people that sit in traffic in Los Angeles each day will die from

cancer this year worldwide.

TREND NINE: Franchise Growth Franchise corporations have long been great supporters of nonprofit causes. From McDonald’s to Dairy Queen, Subway to Jiffy Lube, franchisees have stepped up to raise millions of dollars for a variety of causes that support communities on a very local level. From a business perspective, franchisee models are growing. Unexpected categories like healthy fast food, fitness & wellness and childhood enrichment franchisees are on the rise. With growing footprints that rival well-established franchisee corporations, these categories provide interesting opportunities for national and local cause alliances. Here are a few stand-outs: PureBarre – 228 franchisees Minds Ahead Academy – 611 franchisees Fit4Mom – 245 franchisees Bricks4Kidz – 556 franchisees 9Round – 141 franchisees Fastrac Kids International – 265 franchisees

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TREND APPLICATION: Franchise Growth STRATEGIC BEST PRACTICES

NATIONAL

LOCAL

•  Focused philanthropic giving guidelines •  Right-fit national nonprofit partners

•  Framework of mission-focused opportunities nationwide

•  Marketing and PR strategy that supports overall philanthropic efforts

•  Right-fit local nonprofit partners that align with national giving guidelines and support direct community impact

•  Employee engagement opportunities throughout community

TREND TEN: User-Generated Content In the age of social media, everyone is a content producer – your neighbor, sister or boss. Whether it’s fact or fiction, we like to offer our opinions, stories and advice to our friends, family members and even our favorite causes. While a few years ago, nonprofit organizations were skeptical and weary of user-generated content (UGC), we are now seeing the industry embrace it as a branding tool that can actually fuel fundraising. UGC is a strong form of constituent engagement, and while it has to be carefully monitored, it can become shared and monetized if procured carefully. In 2015, we look to nonprofit organizations to infuse this marketing tactic into their corporate partnerships as a way to engage their constituents.

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TREND APPLICATION: User-Generated Content PERSONAL CONNECTION

EASE OF ENGAGEMENT

AUTHENTICITY

PEER-TO-PEER CONNECTION

REDEFINES “VOLUNTEER”

If individuals are offered a hands-on opportunity to engage with your cause, they are automatically connected to your mission on a personal level.

Whether it’s your mission or a specific campaign, user-generated content provides a quick, flexible and easy way for individuals to participate.

Individuals are more likely to produce and share content when it is authentically requested from an organization, corporation or their friends or family members.

Social platforms used to capture and share user-generated content innately facilitate peer-to-peer connections between family members, friends and colleagues.

Encouraging individuals to lend their voice on behalf of your cause is helping to redefine a nonprofit organizations definition of what a “volunteer” is, and how they can be leveraged to elevate mission, branding and fundraising.

WH

Y IT

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SOURCES

Cisco Global Cloud Index: Forecast and Methodology, 2013-2018 Science Daily; Big Data: For Better or Worse Harvard Business Review: Get the Most Out of Your Big Data Initiative NTEN: The State of Nonprofit Data Deloitte: Global Human Capital Trends 2014 LGB Associates: Global Employee Engagement, Challenges and Solutions http://www.ALSA.org http://www.us.Movember.com

             

ABOUT GOOD SCOUT

ScoutingGood: Interview with Mark Hedstrom, Movember Foundation http://www.StBaldricks.org http://blog.uber.com/nokidhungry https://jawbone.com/alliance 2014 Nielsen Global Survey on Corporate Social Responsibility Forbes; Corporate Social Responsibility: Should It Be A Law? http://www.nokidhungry.org/ http://www.one.org/us http://www.cancer.org/

Good Scout is a social good consultancy that helps brands take smart, impactful, and sustainable leaps in how they do a greater good.

With offices in New York, Los Angeles, Dallas and Austin, Good Scout harnesses the power of award-winning marketers who have developed informed, innovative strategies for top-tier causes and corporate brands including St. Jude Children’s Research Hospital, The American Heart Association, Make-A-Wish Foundation of America, Big Brothers Big Sisters of America, 3M, Chili’s Grill & Bar, Nationwide Insurance and more.

Using our proprietary Cause Innovation tools, sessions and processes, Good Scout ideates and fashions cause platform campaigns, innovative corporate alliance promotions and social responsibility brand-building strategies that propel, ignite and maximize.

Ready to take on cause like never before? Good, Let’s Get Going. For more information, visit www.goodscoutgroup.com.  

 

GOOD SCOUT INSIGHTS

Every nonprofit organization has a story to tell. We fight cancer, we feed the hungry, we shelter the homeless, we offer mentoring, we provide basic human services for children and families around the globe. And while those stories are deeply meaningful, the impact of big data is changing the way we tell those stories forever. Words and stories have evolved into words and stories...and numbers. No longer can a nonprofit talk about its mission in intangible, lofty terms. From securing corporate partners to engaging new donors, today’s nonprofits have to delve deep into organizational data and marketplace trends to provide the outcomes that define impact, show relevance and differentiate your nonprofit brand and cause from all the others. That’s why Good Scout created our Insights Division. Because you don’t just need a story...you need a smarter story. . For questions or interest in Good Scout insights and general trend consulting, contact: Brittany Hill - Vice President, Research & Insights [email protected] @BrittanyHHill

 

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