Nonprofit Marketing & Fund Raising

Marketing scholars began exploring the application of marketing to nonprofit organizations in 1969. Since then, nonprofit organizations have increasingly turned to marketing for growth, funding, and prosperity.

Although it is difficult to define “nonprofit” organizations because of the existence of a number of quasi-governmental organizations, a study in the mid-1990s found more than one million private, nonprofit organizations in the United States. Some experts believe that the way to distinguish between organizations is according to their sources of funding. The three major sources are profits, government revenues (such as grants or taxes), and voluntary donations. In addition, a legally defined nonprofit organization is one that has been granted tax-exempt status by the Internal Revenue Service. However, while nonprofit groups can be defined legally, it is more helpful to focus on the specific marketing activities that need to be performed within the organization's environment. Museums, hospitals, universities, and churches are all examples of nonprofit organizations. Although many individuals may believe that nonprofit organizations have only a small impact on the economy, the operating expenditures of private nonprofit organizations now represent a significant percentage of the U.S. gross national product. In addition, many of these are substantial enterprises. For example, Girl Scout cookies, sold by Girl Scouts of America, constitute 10 percent of all cookies sold in the United States.

Source: marketing. (2005). Encyclopædia Britannica. http://www.britannica.com/eb/article-27291

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