MARKET RESEARCH,
NOT JUST A FOR-PROFIT TOOL
The Associated Press recently reported the results of a “quick and dirty” survey among officials of 126 national charities. Of those surveyed, more than half said their donations were down in 2002 compared to donations in 2001.
Over the past 40 years, the level of annual donations has almost exactly tracked personal income growth. People are most likely to dig deepest into their pockets when they are feeling prosperous. Conversely, during hard times, many wells run dry, and the challenge of fund-raising becomes even more difficult.
In uncertain economic times, market research can be a powerful tool in assisting non-profit organizations with critical fund-raising efforts. By understanding the perceptions of the community, charities can hone in on what messages are most effective in reaching potential donors. They can focus on those most likely to respond to requests for donations.
Market research is very effective in gaining a better understanding of how well the programs offered by non-profits are working. In these cases, it is not the donor that is studied, but rather the recipient of the service.
Not all non-profits fall into the “charity” category. Some are linked to governmental agencies, health care providers, and religious organizations. The list of causes represented by these non-profits includes children’s issues, education, the arts, the environment, and health care. The concern is not always donations. In many cases, it is voter support for special issues and projects.
For non-profits relying on taxpayer money for funding, market research is a good way of bringing an added measure of accountability. Having statistically reliable data reflecting the level of constituent awareness and satisfaction with services can be vital for an organization facing potential budgetary cuts. It can help them to understand which programs should or shouldn’t be sponsored.
Non-profit organizations are often familiar with market research techniques, but sometimes reluctant to use them. They might say, “We can’t afford it” or “We already know what our constituents want.”
In a world changing as rapidly as ours, no one can say with assurance, “I know all there is to know about my customers, clients or donors.” The fact is, that by investing in market research, an organization can frequently reach financial goals in less time and structure programs/services that are more efficient and more successful. ‡
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