ARE YOU BRAVE ENOUGH TO SWAP YOUR MARKETING BUDGET WITH YOUR PHILANTHROPY BUDGET?Petrina Fraccaro – General Manager, CHARLTON BROWN ®

ALTERNATIVELY; CAN AND HOW DOES PHILANTHROPY GENERATE A ROI? OR CAN ONLY MARKETING DO THIS?

BUT AREN'T THEY OPPOSITES?

Philanthropy is an idea, event, or action that is done to better humanity.

It is carried out for motives other than pure profit.

Acts of philanthropy can be physical labour, financial donation or the provision of skills/techniques.

Philanthropy is about alignment of a person’s needs with action, to create a positive outcome.

Marketing is based on thinking about the business in terms of customer needs and their satisfaction.

Marketing considers the entire business process as consisting of a tightly integrated effort to discover, create, arouse and satisfy customer needs.

Marketing is not selling. Marketing has less to do with

getting customers to pay for your product as it does developing a demand for that product and fulfilling the customer's needs.

Philanthropy Marketing

COMMON CHALLENGES FOR BOTH Raising and driving brand awareness. Value for money, return on investment,

measuring publicity, brand value and brand equity.

Use of social media – blog, Facebook, tweet, celebrity endorsement.

Campaigns get lost in the noise, drowned by the cacophony of information overload.

HOW CAN YOUR BRAND BREAK THROUGH THE BARRIERSHow do you create something that is meaningful while retaining your brand identity?

What are the core beliefs and the soul of your company?

What resonates with you? And yet also aligns with the goals and positioning of your brand?

STAND OUT FROM THE PACKYou simply do something different!

Imagine if you could support a project that generated its own media and which also reflected your business goals and at the same time contributed to society in a real and meaningful manner.

Sounds like NIVARNA or HEAVEN or THE HOLY GRAIL…or… STRATEGIC PHILANTHROPY

STRATEGIC PHILANTHROPYYes….I do think I just created new terminology…..

STRATEGIC PHILANTHROPYIf swapping your marketing budget for your philanthropy budget sounds like a bad business move, then you need to rethink your brand equity.

Above the line ROI - your company will be perceived with improved business ethics and morals.

Below the line ROI - where most of your outputs will be measured, you will see an increase in market awareness of both your brand and product, and greater shared understanding of your business goals by employees and clients alike.

Current and prospective stakeholder and clients will develop a meaningful understanding as to what you are all about!

STRATEGIC PHILANTHROPY Create links between your business’ objectives

and those of your charity of choice.

Share these links with your stakeholders, clients and employees.

Formalize these links, set yourselves challenges and reward achievements as this can lead to positive and healthier outcomes for all involved.

This is a win-win situation for both your business and the wider community.

CASE STUDY CHARLTON BROWN®

ONE: CHARLTON BROWN® FOUNDATION CHARLTON BROWN® believes that if you are

going to teach Community Services; then you need to practice Community Services.

Creation of the CHARLTON BROWN® Foundation

Global Linkages Scholarships – creating global citizens

10 projects in the Asian-Oceanic region for 2014; translates to 50 students participating in off shore practicum placement with those in need – orphanages, disability centres, centres for the elderly.

TWO: COMMUNITY SERVICES POLICY The policy – in addition to annual leave, staff

receive an additional day of leave per year to participate in a pre-approved community services project.

If staff do not wish to participate, then they are not provided with the additional day of leave.

Some of the projects: homelessness, women refuges, animal welfare, health issues.

Commonality – all hosts are stakeholders.

HOW DOES STRATEGIC PHILANTHROPY STACK UP AGAINST TRADITIONAL PUBLICITY AND PROMOTIONS?

PHILANTHROPIC PROJECTSWHAT’S THE COST TO BUSINESS Federal grants support the majority of the Global

Linkages Scholarships costs. Not a complete scholarships – student

participation fee. Staff undertake project development,

management and implementation in addition to their employment.

Fund raising for the gaps – NFP status. Good will generated through all projects is the

foundation of business development. Provides credibility – AID BEFORE TRADE! Builds strategic relationships with key

stakeholders.

PHILANTHROPIC PROJECTSRETURN ON INVESTMENT Media coverage – something new and fresh

to say, strong visuals and colour. Credibility – positions the business as an

expert; we don’t just teach, we actually do! Also provides a tangible outcome for intangible products (the change that training can bring to a community).

Engagement – a reason to reach out, touch stakeholders with a positive message.

Employer of choice – staff feel good about the company, they are proud of where they work.

A practical expression of who you are and what you do

BUDGETING FOR IT ALLOr how to the figures stack up….

STRATEGIC PHILANTHROPY ROI MEASUREMENT TOOLThere are two forms of the Return on Strategic Philanthropy Investment (ROSPI)

Short term ROSPI long-term ROSPI

Yes….I do think I just created two new acronyms….

SHORT TERM ROSPI Short Term ROSPI, is also used as a simple index

measuring the dollars of revenue/publicity which can be attributed (or market share, contribution margin or other desired outputs) for every dollar of philanthropy spend.

For example, if a company spends $100,000 on a student engagement activity and receives $500,000 in incremental revenue (through student enrolments, publicity, new student employers) , then the ROSPI factor is 2.0.

Every dollar expended in the philanthropic activity translates to an additional $2 dollar on the company's bottom line.

This ROSPI is simple. In most cases a simple determination of revenue per dollar spent for each activity can be sufficient enough to help make important decisions to improve the inclusion of philanthropy in the entire marketing mix.

LONG TERM ROSPI Long Term ROSPI model draws on lifetime

value models to demonstrate the long term value of incremental student acquisition or improved retention rates, or increased alumni rates.

Long Term ROSPI can also look at brand valuation – building, positioning, retaining etc., this can be a challenging way to create a dollar value for philanthropy as the elements involved are transient and always changing.

Brand valuation is distinguished from brand equity by placing a money value on a brand, and in this way a ROSPI can be calculated.

BUT AT THE END OF THE DAY….The benefits philanthropy brings to the community in which you operate, the deepened level of engagement and the heightened level of awareness among staff, the realisation of the importance of playing an active role in the communities in which you participate, far outweigh all other measurement tools!