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The Foundation Center

PHILANTHROPY NEWS DIGEST
   Vol. 6, Issue 50
   December 5, 2000

Cause-Related Marketing Catches on During Holiday Season

In many cities across the U.S., charities are partnering with retail stores to give shoppers a feel-good incentive to spend more during the holiday season, the Wall Street Journal reports.

According to a study commissioned by the marketing firm Cone Inc., 74 percent of retailers say they have increased their participation in charitable activities over the past five years. "With price and quality of products so similar, one way for a retailer to differentiate his product is through cause marketing," said Ann Chan, an account executive in Cone's cause branding outreach division. "It creates an emotional bond between consumer and retailer."

As both retail stores and charities begin to experience the effects of a slowing economy, retailers and fundraisers are counting on their partnerships to help increase sales and donations. One popular trend is the discount-card, which gives shoppers who purchase a special $50 card from a charity a 20 percent discount at participating stores for a limited time.

The discount-card program has enabled some organizations to significantly boost their fundraising during the holidays. The Dallas-based Family Place, a shelter for battered women and their children, sold over 12,000 cards last year, raising some $600,000 in the process. And in Colorado, a similar discount card program helped the Colorado's Children Campaign raise more than $100,000.

Zimmerman, Ann. "Promotional Ties to Charitable Causes Help Stores Lure Customers." Wall Street Journal 12/4/200, p. B1, B4.

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