NPO Introduction PDF

MARKETING APPS IN THE NOT- FOR-PROFIT (NPO) SECTORS MGMT 2402 1: INTRODUCTION TO NPO MARKETING WHAT IS A NOT- FOR-PROFIT ORGANIZATION?  "A nonprofit organization is an entity that is created and operated for charitable or NPO socially beneficial purposes rather t...

MARKETING APPS IN THE NOT- FOR-PROFIT (NPO) SECTORS MGMT 2402 1: INTRODUCTION TO NPO MARKETING WHAT IS A NOT- FOR-PROFIT ORGANIZATION?  "A nonprofit organization is an entity that is created and operated for charitable or NPO socially beneficial purposes rather than to make a profit. A nonprofit might serve DEFINITION religious, scientific, charitable, educational, literary, health, or animal welfare purposes." TYPES OF NPOS  Religious organizations  Education and research organizations  Health-related organizations  Social welfare organizations  Art and culture organizations  Business, professional, and membership organizations  Youth development organizations  Other types of nonprofits  Find examples of each SOURCES OF FUNDING Government Grants (federal, provincial, municipal) Donations and foundation funding Earnings from investments (interest) Membership fees or dues Charitable gaming (QE 2 home lottery) Individual donations Corporate donations Fundraising organizations (United-Way) REGISTERED CHARITIES  Some NPOs are qualified to be registered charities  Registered charities are charitable organizations, public foundations, or private foundations that are created and operate in Canada, solely for charitable purposes. They must use their resources for charitable activities and have charitable purposes that fall into one or more of the following categories: o the relief of poverty o the advancement of education o the advancement of religion o other purposes that benefit the community  Examples of registered charities o Some examples of registered charities under each of the four categories: o relief of poverty (food banks, soup kitchens, and low-cost housing units) o advancement of education (colleges, universities, and research institutes) o advancement of religion (places of worship and missionary organizations) o purposes beneficial to the community (animal shelters, libraries, and volunteer fire departments) ADVANTAGES  You can issue official donation receipts for gifts that you receive from individuals and corporations.  You are exempt from paying income tax.  You are eligible to receive gifts from registered charities.  You gain increased credibility in the community.  Many goods and services you provide are exempt from goods and services tax/harmonized sales tax (GST/HST). OBLIGATIONS  Your main obligations are to: o devote your resources (funds, personnel, and property) to your charitable purposes and activities o maintain direction and control of the use of all your resources (funds, personnel, and property) o file your annual Form T3010, Registered Charity Information Return, within six months of your fiscal year-end o meet your annual spending requirement (disbursement quota) o keep reliable and complete books and records o issue complete and accurate official donation receipts o maintain your status as a Canadian legal entity NPO STATS IN CANADA, 2023 A FEW STATS-2023  The most prominent sources were individual donations, membership fees or dues, and provincial government grants  Health and social services nonprofits received most of their funding from provincial grants  Smaller NPOs with no employees or 1-4 employees received most of their funding from individual donations  Larger organizations with 0-100+ employees relied less on individual donations and received most from provincial government grants  Business/professional associations, unions and sports and recreation were more likely to receive funding from membership fees and dues  Organizations without any employees also relied more on membership fees and dues DISTRIBUTION OF BOARD DIRECTOR POSITIONS FILLED BY:  Diversity within non-profit boards broadens perspectives, experiences, and expertise, strengthening the ability of non-profit organizations to make impactful decisions, advance initiatives for civic improvement, social welfare and public benefit. Almost all (92.6%) organizations have boards of directors. DISTRIBUTION BY PRIMARY ACTIVITY ORGANIZATION SIZE CHALLENGES OF NPOS  Lack of Funds and resources  Poor governance  Continuous strategic planning  Limited capacity  Government procedures  Customer MARKETING DEFINITION "Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.   The use of marketing tactics to further the goals and objectives of nonprofit organizations  Broad range of activities such as: o Advertising, public relations, fundraising NOT-FOR- o Gathering and processing information to help make PROFIT informed decisions MARKETING o Relations with governments, board members, donors, volunteers  Activities and strategies to spread our message, solicit donations and call for volunteers WHY DO NPOS NEED MARKETING?  Resonate with target publics  Build image & reputation  Recall organization & cause  Attract donors and volunteers  Differentiate from other NPOs  Long-term success WHO ARE WE MARKETING TO?  Donors  Volunteers  Board of directors  Government  Partners  Members  Clients  Media  Corporations We might be marketing to any of these groups REALITIES OF NONPROFIT MARKETING  Are these statements true or false? 1. Marketing effectiveness depends on a supportive organizational culture 2. There is no such thing as the general public 3. There will always be too much to do 4. Good nonprofit marketing takes more time than money 5. Personal and organizational brands often blend