Nonprofit Organizations 20 C H A P T E R Nonprofit Organizations

The Role of Public Relations Nonprofit organizations are the source of many jobs in the public relations industry. There are an estimated 1.4 million charities and religious organizations in the United States. The crucial point about nonprofit organizations is that they are tax exempt. Many nonprofit organizations could not survive if they were taxed, because they face the unending public relations task of raising money to pay for expenses and projects.

Basic Needs of Nonprofits Nonprofit organizations engage in the same types of tasks in order to succeed: Create communication campaigns and programs that stimulate public interest in organizational goals and invite public participation. Develop a strong staff to handle the work, including recruiting and keeping volunteers. Establish a realistic fundraising goal and a plan to attain it.

Membership Organizations A membership organization consists of people with a common interest, in either business or social life. The purpose of a membership organization is mutual help and self-improvement. These organizations often use the strength of their common bond to improve community welfare, endorse legislation and support socially valuable causes. Trade associations, labor unions and professional associations are all types of membership organizations.

Membership Organizations cont. A chamber is an association of businesspersons, often joined by professionals, who work to improve their city’s commercial climate and to publicize its attractions. State chambers of commerce and the Chamber of Commerce of the United States provide guidance to local chambers and speak for business interests before state legislatures and the federal government. Often, the chamber of commerce is the public relations arm of city government.

Advocacy Groups Advocacy groups often advocate for a specific cause, especially environmental issues and social and human rights causes. Environmental groups, social issue organizations and other activists groups work to influence the collective conscience and enact a specific change.

Advocacy Groups cont. Direct mail fundraising and publicity campaigns are basic tools of advocacy groups. The principal ways that environmental organizations work to achieve their goals are lobbying, litigation, mass demonstrations, boycotts, and reconciliation.

Social Organizations The term social includes social service, health, cultural, philanthropic, and religious groups serving the public in their various ways. In general terms, nonprofit social organizations are of two types: services and causes. Because communication is essential for their success, they require active, creative public relations programs.

Social Organizations cont. Since these organizations are not profit oriented, the practice of public relations on their behalf differs somewhat from that in the business world. For many nonprofit groups, obtaining operating funds is a necessity that dominates much of their effort. Competition among nonprofit agencies for their share of donations is intense.

Social Organizations cont. For purposes of identification, nonprofit social organizations and their functions may be grouped into seven categories: Social service agencies Health agencies Hospitals Religious organizations Welfare agencies Cultural organizations Foundations

Social Organizations cont. In general, nonprofit organizations should design their public relations to achieve the following objectives: Develop public awareness of the organization’s purpose and activities Induce individuals to use the services the organization provides Create educational materials - especially important for health-oriented agencies Recruit and train volunteer workers Obtain funds to operate the organization

Social Organizations cont. Finding ways to pay the bills is a critical problem for virtually all nonprofit organizations. Public relations representatives may participate directly in fund-raising by organizing and conducting solicitation programs or serving as consultants to specialized development departments of their organizations.

Social Organizations cont. Philanthropic organizations raise funds in several ways: Corporate and foundation donations Structured capital campaigns Direct mail Sponsorship of events Telephone solicitations Use of telephone numbers with “800” and “900” area codes for contributors Commercial enterprises

Hospital Public Relations The public relations staff of a hospital has two primary roles: to strengthen and maintain the public’s perception of the institution as a place where medical skill, compassion, and efficiency are paramount to help market the hospital’s proliferating array of services

Hospital Public Relations Because hospitals sell a product (improved health), parallels exist between their public relations objectives and those of other corporations. They focus on diverse audiences, involve themselves in public affairs and legislation and stress consumer relations. Hospital public relations programs have four basic audiences: patients, medical and administrative staffs, news media, and the community as a whole.