1. COM215 Taejin Jung, Ph.D. Week 14: Nonprofits & NGO

2. The Third Sector In the US, there are 1 million nonprofit organizations (IRS charitable agencies) Definition - Organized - e.g.) Mission, policies, organizational structure (http://www.americanheart.org/presenter.jhtml?identifier=1200000)http://www.americanheart.org/presenter.jhtml?identifier=1200000 - Private/Independent – Institutionally separate from government - Nonprofit distributing - Self-governing – Independent of external control - Voluntary

3. The Third Sector Volunteerism & Philanthropy - Volunteerism – About 40 million people volunteer each year at the 1.8 million nonprofit organizations in the US. - Philanthropy – Since 1998, charitable giving has been 2 percent or more of GDP. Changing Climate - Government cutbacks on the funding (http://www.pnnonline.org/article.php?sid=6838)http://www.pnnonline.org/article.php?sid=6838 - Intense competition for financial donations and volunteer support - Growing public concern about the credibility and accountability of tax exempt organizations. (http://www.irs.gov/newsroom/article/0,,id=128328,00. html)http://www.irs.gov/newsroom/article/0,,id=128328,00. html

4. Role of PR in Nonprofit Org. “Brand” the organization, gain acceptance, and protect reputation. Develop channels of communication with stakeholders. Create and maintain a favorable climate for fund-raising. Support the development of public policy that is favorable to an organization’s mission. Inform and motivate key organizational constituents to dedicate themselves in support of organization’s mission.

5. How PR is practiced in NPO Integrated PR with marketing and MBO. More NPO stepped up pressure to engage professional PR assistance. Recruiting volunteers and obtaining donations are standard expectations of PR role. Pain advertising has emerged as a major controlled communication tactics. Strategic partnerships linking nonprofits and corporate donors and news media organizations

6. PR in Foundations - A foundation is a nongovernmental, nonprofit organization that uses its own funds to provide grants and financial assistance to other unrelated nonprofit agencies. - Must distribute at least “5 percent” of their investment assets annually. a. Company-sponsored foundations (e.g., Ford Foundation) b. Independent foundations (e.g., Bill and Melinda Gates Foundation) c. Community foundations

7. PR in social service agencies - To provide parent and child programs, food and nutrition programs, shelter, drug rehabilitation, refugees, and more. - PR practitioners’ roles a. Maintaining existing funding and attracting new philanthropy. b. Building a committed staff and mobilizing volunteers c. Educating legislators and key community leaders -“United Way Wheel” at P. 452.

8. Membership Organizations Consists of people with a common interests, in either business or social life Use their common bond to improve community welfare, endorse legislation, and support social valuable causes 1. Trade Associations - About 6,000 trade and professional ones - Memberships are held by corporate entities - One-third of them based in the Washington D.C. area - Monitor congressional activity, lobby for legislation, and meet government officials - Examples: Electronic Industrial Association National Soft Drink Associations National Association of Home Builders

9. Membership Organizations 2.Professional Associations - Setting standards for professional performance - Establishing code of ethics - Determining requirements for admission to the field - Encouraging upgrading skills through continuing education - Examples: The Public Relations Society of America (PRSA) The International Association of Business Communicators (IABC) The American Medical Association (AMA) ☞ The lobbying power of AMA a. Developed grassroots effort to shape medical liability reform b. Provided a Physician Action Kit for member to use ☞ Hiring PR & advertising for their business a. Medical associations are hiring PR firms to publicize new or controversial techniques like “Fat Suctioning”

10. Membership Organizations 3. Labor Unions Since 1970s, LUs suffered serious losses in membership [1.5 million(’75) to 700,000 (’04)], 15% of all American workers Objectives - Seek to build memberships - Protect member’s job security - Improve their public images Try to communicate with internal audiences - Return for their due - Social & recreational programs 4. Chambers of Commerce - An association of businesspersons working to improve their city’s commercial climate and to publicize its attractions - The PR arms of city government - Play the role of community booster

11. Advocacy Groups 1. Environmental Groups Greenpeace a. Operate in 30 countries b. 5 million members 2. The National Rifle Association 3. The American Tobacco Institute 4. The Christian Coalition Methods of Operation - Lobbying ex) lobbying for laws to forbid smoking in public places and to restrict the sale of tobacco by 150 organizations - Mass Demonstrations ex) grassroots movement - Litigation ex) The Sierra Club did a long- year lawsuit to declare the northern spotted owl a threatened species - Boycotts ex) Rainforest Action Network’s boycott against Burger King for buying Central American beef raised in cleared rain forests - Reconciliation ex) The environmental Defense fund work with McDonald’s to deal with the fast-food chain’s solid waste problem, leading to a decision to phase out polystyrene packaging

12. Social Organizations Social service agencies - The American Red Cross, YMCA, the Rotary, the Lions… Health agencies - The American Heart Association, the American Cancer Society… Hospitals Religious organizations Welfare Agencies Cultural organizations - Libraries, musical organizations, museums… Foundations - The Ford Foundation, the Rockefeller Foundation, the Annenberg Foundation…

13. 2003 Contributions: $240.72 Billion by Type of Recipient Organization

14. Fund-raising Individual contribution (75%) > Combined corporate and foundation giving (25%) - Individuals (74.5%) > Foundations (10.9%) > Bequests (9%) > Corporations (5.6%) Types of Fund-Raising - Corporate and foundation donations - Structured capital campaign - Direct mail - Sponsorship of events - Telephone solicitations - Use of telephone number with “800” - Commercial enterprises Fund-Raising and administration costs - An organization is in trouble if its fund-raising costs (solicitation and administrative) are more than 25 percent a. American Cancer Society: 78.2% b. American Heart Association: 75% Motivation for giving (Gallup Poll) 1. Assisting those who are less fortunate (53%) 2. Gaining a feeling of personal satisfaction 3. Religion 4. Tax considerations (4%)

15. Exercise ☞ Example of Nonprofit organizations Health Care - American Heart Association - American Lung Association - American Obesity Association... Education - American Association for Higher Education - American Association of University Women Churches - National Council of Churches Types of Associations - Professional associations (e.g., American Bar Association..) Then… - (How to) brand the organization (and gain acceptance). - (How to) develop channels (of communication with those an organization serves). - (How to) create a favorable climate for fund-raising. - (How to) support the development and maintenance of public policy (that is favorable to an organization’s mission). - (How to) inform and motivate key organizational constituents.