1. So… What’s the Deal With Marketing ? AFP Southern Arizona Friday March 14, 2008

2. Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-40192 What IS “Marketing?” Marketing, - noun 1a a process designed to bring about the voluntary exchange of values between a not-for- profit organization and its target market, such as the transfer of a donation in exchange for addressing a social need, recognition, or a feeling of good will. 1b the process or act of fostering such an exchange in a market.

3. Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-40193 What IS “Marketing?” Marketing, - noun 1a a process designed to bring about the voluntary exchange of values between a not-for- profit organization and its target market, such as the transfer of a donation in exchange for addressing a social need, recognition, or a feeling of good will. 1b the process or act of fostering such an exchange in a market.

4. Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-40194 “Marketing” in the real world Marketing is a societal process which discerns consumers' wants, focusing on a product or service to fulfill those wants, attempting to mold the consumers toward the products or services offered…. Marketing is the process of creating or directing an organization to be successful in selling a product or service that people not only desire, but are willing to buy.productservice

5. Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-40195 Leads to CONFUSION For donors For Board members and other volunteers For committee members For non-profit directors and managers For fund development professionals

6. Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-40196 More Confusion “Development” in for-profit sector means “Business Development” or “Product Development” “Marketing / Development Committee” of the Board – does which?? “Director of Development / Marketing?” We sometimes speak in terms of what we have to “sell”

7. Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-40197 “Transactional Fundraising” Raffles and/or Auctions Event ticket-purchases Thrift Shops Package tours “Branded” merchandise sales “Cause-related” marketing Cookie/gift wrap/candy sales “Free will donation” concerts

8. What’s the Difference? Developent Philanthropy May be tax- deductible Code of Ethical Standards Mission is central Marketing Quid pro quo No tax benefit to constituent No standardized ethical code “Customer is always right”

9. Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-40199 “Customer is Right” example Event tickets are $100 (table $1000) Tax-deductible portion = $60 (table $600) Table purchaser is only eating one meal, so thinks her tax letter should state “$960 of which is tax-deductible”

10. Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-401910 “Mission-focused” example Event tickets are $100 (table $1000) Charitable portion going to agency’s mission = $60 (table $600) Doesn’t matter how many meals purchaser eats; the tax benefit to the agency is just $600.

11. Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-401911 Words are Everything “Goods and/or services you are eligible to receive as a result of this purchase are estimated to be approximately $40; the remainder - $60 - may be tax- deductible to the extent allowed by law and your personal tax circumstances.”

12. Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-401912 Words are Everything “The charitable benefit that will come to this agency as a result of your purchase is estimated to be $60; that amount may be tax- deductible to the extent allowed by law and your personal tax circumstances.”

13. Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-401913 What to do? What to do?? 1.If your job is “development” and “marketing,” be clear about which you’re doing. 2.Educate your organization’s Director and Board members about the differences. 3.Talk thru the differences with your marketing counterpart.

14. Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-401914 What to do? What to do?? 4.Introduce your marketing counterpart (and Director, and Board) to the AFP Code of Ethical Standards and Professional Practice. 5.Work with your marketing counterpart to implement fund development messages in marketing messaging (and vice versa!). 6.Learn the basics! Who is the audience? What do they care about?

15. Clyde Kunz & Associates LLC - www.ClydeKunz.com - (520) 977-401915 What to do? What to do?? 7.Examine your Development Plan (or write one!); look for an appropriate ratio between “transactional” and “direct” fund development. 8.Begin to move your program more toward “direct” fund development (and let Marketing do the marketing!). 9.Bring others (the Mktg Director, the Director, Board volunteers, etc.) into the discussion.

16. Thank You ! Kunz@Cox.net (520) 977-4019 www.ClydeKunz.com