Nonprofits: Marketing in a Tough Economy

This industry comprises establishments engaged in raising funds for a wide range of social welfare activities, such as health, educational, scientific and cultural activities. Most foundations (or corporations) in this industry can be termed philanthropic, insofar as they fulfill many social welfare functions and activities and also grant money to charities and other nonprofit organizations. The key indicators for the industry are: industry revenue, industry gross product, market size, demand determinants (factors which are likely to cause demand to rise or fall), basis of competition (types of competition between firms within the industry and from substitute products in alternative industries) and life cycle (which stage of development the industry is at.) Although this mature industry has experienced less than inspiring growth recently, the future might not be so disappointing. As larger companies become more conscientious, and wish to be seen as being so, they might donate more money to nonprofit organizations. As long as financial transactions remain transparent, confidence in this industry should remain high. Furthermore, the proliferation of social media offers nonprofits an inexpensive way to reach new and existing donors, publicize events, conduct fundraisers and increase awareness of their cause.