The Third Sector
• First Sector – Government, Second Sector – Businesses
• Third Sector - NGO, Non profit, Not for profit
• Society, Trust or a Non-profit Company
Range of organisations -
• Global, national, regional, local
• Type of cause – Issues, a segment of marginalised society
• Some very broad based, some very niche
• Operational/ Funding/ Services/ Bridging
• Type of work – Research, Community based projects, self development
Economies of the Third Sector
Income Tax Exemptions –
• For the Organisation - Section 12 A of the Income Tax Act 1961
• For the Donor –
– 80G Certificate – 50% Exemption
– 35(a)(c) – 100% Exemption
– 80GGA – 100% Exemption
Foreign Contribution Regulation Act – FCRA
What's Social Marketing
• Born in the 1970s – Philips Kotler and Gerald Zaltman
• To sell ideas, attitudes and behaviours
• Kotler and Andreasen "Social marketing can be defined as differing from other areas of marketing only with respect to the objective of the marketer and his or her organisation. Social marketing seeks to influence social behaviour not to benefit the marketer, but to benefit the target audience and the general society."
• Most importantly, the whole reason for social marketing is just the reverse of why profit making companies use marketing!
– Profit making companies – Expand, grow, make itself indispensable
– Social Marketing – To make the organisation redundant is the goal
The 8 P's of Social Marketing
• Product – Ranges from physical product, to services, to practices to intangible ideas
• Price – What the consumer must do to obtain the social marketing product. It may be monetary or it may require the consumer to give up intangibles like time or effort or to risk embarrassment and disapproval.
• Place – The way the product reaches the consumer. For a physical product it may be the distribution channels, but for intangible ideas it will be the way or manner in which the consumers get in touch with the product.
• Promotion – This consists of the integrated use of advertising, public relations, promotions, media advocacy, personal selling and entertainment vehicles.
• Public – External and internal groups/ audiences
• Partnership – Reversing competition
• Policy – Environment, government, media
• Purse Strings – Grants, aid, donations
Example of a marketing mix strategy
For a breast cancer screening campaign for older women
• Product – Getting an annual mammogram, seeing a physician each year for a breast exam, performing monthly breast self exams
• Price – Monetary costs of mammogram, potential discomfort and embarrassment, time, possibility of finding a lump
• Place – Local hospitals, clinics, camps
• Promotion – Public service announcements, hoardings, media events, mailing, community outreach
• Publics – Other than the actual target audience say women between 40 to 65 years of age in low income groups, the people who influence their decisions like their husbands or physicians, policymakers, workplace environment managers
• Partnership – Local / national women's groups, corporate sponsors, media organisation, service clubs
• Policy – Increase access to mammograms through lowe4r costs, requiring insurance and Mediclaim, increasing funding for breast cancer research
• Purse Strings – Government grants, corporate sponsorships, individual donations, bigger cancer foundations
What is a charity event?
• A charity event is an event that is organised in order to mobilise resources for a socially committed not for profit organisation.
• The resources could be monetary, in kind, time or skills.
• It is an event which is normally organised with funds raised through sponsors and donations and the benefits from the box office receipts or any other receipts go to the organisation.
• Often for a charity event people volunteer their time, effort and skills to ensure that the organisation gets maximum benefit out of it.
• In aid of, in support of, Benefit show – other names for charity event.
Organising a charity event
• Deciding the objectives, essentially targets
• Brainstorming options
• Selecting a few that may work and scouting for content
• Working out economics for each option
• Sounding off a few prospective sponsors
• Zeroing on one event that proves to be most economical
• Contacting booking content providers, planning content, benefits to sponsors, PR, budgets, earnings
• Working out the sensitive issues
• Identifying likely sponsors
• Creating customised proposals for them, pitching, negotiating, sealing deals
• Running the event
• Post event clean up, collections, completions
Benefits to the sponsor of the charity event
• Sales promotion
• Media Advertising
• Public Relations
• Customer Appeasement
Through these what he gets is –
• Sales push
• Customer pleasure
• Known as a socially responsible entity
Types of charity events
• Sports and Entertainment
• Mass Events and Niche events : Volume and Value
• Celebrity endorsements
– Art Auction
– Golf Tournament
– Theatre Festival
– Film premiere
– Charity Dinner with performance
– Benefit Cricket Matches
– Auction of special memorabilia
– Food Festivals
– Charity Challenges
Importance of Public Relations
• Most important tool which brings credibility to the organisation
• Gives the cause the awareness and focus it needs
• Gives sponsors the reason to associate
• Builds image for all concerned
• Representation from all voices
• Media becomes a platform for wider discussion on the cause/ issue
• Build relationships with the media
Things to keep in mind
• Bridging the sponsors need and the need of the cause
• Sensibilities, awareness of the social sense
• Need to be keep in mind the sensibilities of the target audience
• Briefing the media well
• Maximise outcomes in terms of funds
• Accounting precision
• Income tax, sales tax, entertainment tax and other taxation detailing
• Legalities cleared
• Tie-ups with associated organisations
Global Charity Organisations
• Operational Organisations: Actionaid, Green Peace, Cheshire Homes,
• Funding Organisations: Ford Foundation, Japan Foundation, Nippon Foundation, Rockefeller Foundation
• Service Organisations: Resource Alliance, Fundraising Foundation, Board Source
• Bridging Organisations: Arts and Business
Working a cause
Choose a cause & create a Charity Event
• A suicide helpline across the four metros and Bangalore.
• Working towards a better environment in a city.
• Working for the rights of women abused by domestic violence.
• Giving scholarships to talented young men and women to study the arts in universities abroad.
• Working with men suffering from alcohol abuse.
• Looking at providing vocational training to physically challenged youth.
• Working for Aids awareness programme among young adults.