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The economy is slowly coming back, but it may be a long time before it gets all the way back to an acceptable level for most people. Deep cuts in government spending have crippled programs that have left no segment of our society unaffected. Private nonprofit organizations are struggling as well. Large numbers of once consistent donors can no longer afford to make their monthly or even annual contributions. Philanthropists from every corner of the globe are seeking out new ways to increase donations without begging too much from an already strained donor base.
In the last few months, several companies have formed that can help. They began as a form of Network Marketing, with incentives to sign additional people up into the program for a chance to earn rewards. To understand how these companies and programs can benefit nonprofit organizations, we first must understand exactly how they work for an average individual.
The foundation for the program is the offer to buy goods or services through the system. An individual enrolls in a program to receive a chance to purchase a deal via email every morning for a business in that person's geographical area. There is no obligation and membership is free. These offers can be for restaurants, hair salons, car washes, golf, or just about anything else that can be imagined. With the deal being presented to thousands of people, the business is able to offer whatever it is at fifty to ninety percent off of normal retail price. Sometimes there are restrictions, but the offers are so good that consumers rush to take advantage.
They purchase the deal through the system and then print out a voucher to take into the business. While businesses can be hit by offering such a drastic discount, they gain the opportunity to expose more customers to their restaurant, store, etc.. The theory is that the new customers will either buy more than what is covered by the voucher, or they will return multiple times in the future creating more revenue.
The next part of the platform is a referral rewards program. Members of these organizations can earn rewards and even cash by referring people or businesses to use the system. This is where the benefit to nonprofit organizations exists. The first thing the nonprofit must do is to enroll in the program. All it takes is a name and an email address. Once in the program, they usually have the option to contact a member of the company that handles nonprofit organizations.
That person will verify the tax standing of the organization and set them up properly within the system. The next step is for the nonprofit to notify its donors and contributors that it is in the program. The nonprofit will have a personalized link to email to everyone and put on its website. The donors and contributors are informed that through their voluntary enrollment in the program, a portion of every purchase they make will be donated to that nonprofit. The donors and contributors are also encouraged to tell their friends or anyone else about the program. Everyone who signs up will be grouped under that nonprofit organization.
Whenever any of them make a purchase through the system, a portion will be donated to that nonprofit organization. There are no geographical restrictions. With deals being launched in multiple cities, it is possible that a customer buying a car wash in Florida will actually be benefiting a nonprofit in Oregon. The nonprofit organization can also benefit by enrolling a business. Since the business is paid by the marketing company through the system, a percentage of the proceeds is automatically donated to the nonprofit organization. With the nonprofit organization's group growing exponentially over time, there is a potential for huge donations down the road.
Those are the basics of this system. With multiple companies currently implementing these programs, some of the details, such as how much the business receives, or the percentage of proceeds going to the nonprofit, may vary.
Enrollment is always free. The only time any money changes hands is when a deal is purchased through the secure internet site. It is recommended that a nonprofit organization research any potential company they plan to get involved with. While none of them seem to have any issues at this point, some of them have a greater potential for long term success than others.
Jeremy T. Roos is an expert in sales and marketing. Currently he is focused on technologically-based marketing strategies with an emphasis on zero cost marketing programs for nonprofit organizations. For more information, please visit [http://www.nonprofitsadvantage.com].
Article Source: https://EzineArticles.com/expert/Jeremy_Roos/960406
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