The NonProfit Times - August 15, 2008 - (Page 22)

Nonprofit Styles Aren’t Out Of Fashion Ties, bracelets still bringing in cash with updated looks BY MARK HRYWNA L ivestrong bracelets will go down as a fundraising phenomenon, generating millions of dollars for the Lance Armstrong Foundation (LAF), but also for nonprofits around the nation. Four years ago last month, the bright yellow silicone bracelets debuted with a goal of selling 5 million units. By summer’s end, LAF surpassed the goal and bracelets could be found around the wrists of millions of people. Assorted nonprofits capitalized on their popularity, selling different colors to represent their specific causes. Nonprofits may not make “a profit” like typical corporations, but that doesn't mean they can't hawk their wares. Merchandising can become big business no matter the organization if the market exists, from neck ties and T-shirts to toys and bedding. Licensing products can become another avenue for branding or even another means to diversify their revenue stream. Merriam-Webster’s Dictionary defines fad as “a practice or interest followed for a time with exaggerated zeal.” So if nonprofits continue to employ the Livestrong-like bracelets today, several years after their “heyday,” can they be considered a fad? Furthermore, the Lance Armstrong Foundation itself might not be moving 22 million units like it’s 2005, but the 2.4 million bracelets sold last year were twice as many as the previous year. “It was definitely a phenomenon when it came out, and…it’s a phenomenon that hasn’t gone away and it continues to grow in awareness and impact,” said Betty OtterNickerson, chief operating officer at LAF. “Some people have had the sense that they’re not as important, but I think the numbers kind of show the increase in awareness around the mission and the cause as the wristband is an iconic figure for that and it continues to be something that we distribute and sell widely,” OtterNickerson said. Today, while some might be looking for the next fundraising phenomenon to come on the scene, nonprofits continue to use the bracelets to brand their causes and identify supporters. And many still make a few bucks while they’re at it. “What it really underscores is how when the wristband was introduced we changed the face of philanthropy, and allowed people a way to show support for a cause at very nominal investment for the person who wants to do that, and have an iconic way to show that as well,” Otter-Nickerson said. “That’s really the way that we think about the wristband; we’re very supportive of people who want to do a wristband.” Otter-Nickerson said that she fields calls from organizations, not seeking permission to use the band, but looking to embellish them with some sort of trinket.The foundation has a trademark on the Livestrong slogan and the yellow wristband, but no copyright on the concept of a wristband, she said, and that was a “conscious decision” made by the organization. “People are very creative and see it as a good avenue to not only raise funds but to show support for their cause and their organization,” she said. “That’s why we love seeing wristbands on people, regardless of the color. We really like when we see yellow ones. It’s a great way to start a conversation with each other, just walk up and ask,‘What’s your connection to the cause.’” ure is “down certainly from its peak considerably, but they still sell,” Geswell said. From 2004 to 2007, the foundation sold about 150,000 bracelets, or an average of 50,000 per year.That’s a drop-off of almost 40 percent to the 15,000 during the first six months into this year. The “Got Guts” bracelets generated about $150,000 -- with 100,000 units selling directly online at $15 for a pack of 10 -- netting the charity almost $100,000. The other 50,000 bracelets were ordered in bulk and used as giveaways and direct mail promotions. “We don’t really promote them very much at all,” Geswell said, but chapters tend to use them as giveaways at their events and activities and sell them locally at fundraising events. The original bracelets only said “Got Guts,” which didn’t make for a good branding mechanism, but they’ve since added the Web address (ccf.org). Crohn’s and Colitis has an online store where it also sells T-shirts, caps and similar items for patients. Many an organization has adapted the Livestrong bracelet in its own More recently, as part of the color and inscription, as in the case of the purple “Got Guts” bracelet online store, the nonprofit for the Crohn’s & Colitis Foundation. has been selling merchandise for its teen challenge and halfRichard Geswell, president and CEO of marathon and walk programs specifically, the Crohn’s & Colitis Foundation, calls the items like running fleeces and socks, and bracelets “almost tribal” and a great way to hats, among others. “We haven’t really identify with a group. “For our patients started marketing it yet so sales have been and patients of other organizations, I think modest, but we expect it to be a sizable there’s been that kind of tribal mentality, piece of the business because those kinds and really belonging to part of an organiof participants like to get that logo gear,” zation or a group and being identified Geswell said. with them.” “I’m sure we’ll be doing more,”Geswell The bracelets are “a symbol of, ‘This is said as the organization’s new programs my organization, and please help me.’ I (Team Challenge and half-marathon) are think we’ll always use them that way,” branded orange. “We’ll probably try to Geswell said.“That was unique in a great renew the inventory with new colors to way for nonprofits.” give people real inspiration to do it again,” “Got Guts” is inscribed on the bracelet he said. sold by the New York City-based nonJoanne Cacciatore, president and CEO profit, which has moved about 15,000 units during the past six months.That figNonprofit Styles, page 23 UNIQUE ITEMS Continued from page 21 Photo By Matt Lankes for Glide Foundation. What works on eBay are things that offer unique experiences, said Patricia Evans, vice president for donor development at Starlight Starbright Children’s Foundation in Los Angeles. It doesn’t get more unique than a zero-gravity flight with famed physicist Stephen Hawking.The nonprofit raised $76,000 on eBay last year from a flight he donated to the organization. “Number one it has to be a terrific item, and then it’s how you present yourself and describe it; it’s in the production values of what you put there, and how it’s presented on eBay,” Evans said. “All those things really have to work together, and then it’s management. “eBay is this limitless opportunity as long as you do it correctly,” said Evans.“It seemed to me this was the perfect candidate for eBay.” But, she warned: “You can’t just sit back and say you’re on eBay and the world will beat a path to my door.” The foundation and its auction management company, Auction Cause, spent time on the presentation and promotion. In the case of a big-money item like the zero-gravity flight, bidders are required to pre-qualify. Evans suggested nonprofits turn to existing relationships, even in another part of their organization, and use the eBay auction as “another vehicle to broaden the relationship.” Starlight Starbright, with a budget of more than $9 million, raises an average of $100,000 annually through auctions, with a goal of increasing that figure by 50 to 100 percent in the coming years. “We really see online auctions as an incredibly viable revenue stream,”Evans said, with a strategy to continue to diversify. Carmen Holmes, regional field representative for Muscular Dystrophy Association (MDA) chapter in Dallas, said their most successful auctions are gift cards, which generally return 100 percent of the value of the card or more, in addition to sports memorabilia, luxury getaways and dining. MDA last year tested cMarket auctions in six markets (Dallas, Denver, Houston, Knoxville, Louisville and Phoenix), with the national organization coordinating communication among chapters. MDA goes live with an Internet auction a few weeks prior to the Labor Day telethon. Promotion via the Web site continues before closing the auction just before the live telethon event, Holmes said. Items that can translate between markets help a national organization like MDA.With six markets being facilitated by the national office, they can coordinate and trade items, for instance, if Dallas is heavy in sports memorabilia but Denver has a surplus of ski packages. Last year, the Dallas MDA raised almost $60,000 from its catalog of items, which were valued at almost $128,000, Holmes said. Houston raised more than $200,000, the most among the test markets. NPT AUGUST 15, 2008 THE NONPROFIT TIMES www.nptimes.com http://ccf.org http://www.nptimes.com

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The NonProfit Times - August 15, 2008 The World’s Best Fundraisers Holiday Jeer Contents ‘Donate Now’ Atlanta Luring Major Charities Expenses Continue To Put Stress On Nonprofit Budgets Fuel Costs Eating Up Food Banks Get An Email Address, Generate Income Unique Items Drive Fundraising Auctions Nonprofit Styles Aren’t Out Of Fashion Limited ‘Face’ Time NPT Jobs Resource Directory

The NonProfit Times - August 15, 2008

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