Identifying Competitive Environment for Fundraising in Canada
Identifying Competitive Environment for Fundraising in Canada
It is a known fact that assistance and contributions from profitable business organizations and affluent individuals are the lifeblood of any not-for-profit organization. However, reaching appropriate donors and contributors have become more challenging and difficult (Gierczak et.al, 2016). On one hand, there is a fierce rivalry and on the other hand, there are many issues pertaining to gain donor’s attention towards the issue on hand. Therefore, in order to grow in this competitive environment, not-for-profit organizations require to be more engaging with donors (Global Philanthropy, 2016). Although this has been the case for various regions and countries around the world; however, this particular paper would be focusing only on Canada and the competitive fundraising environment there. To further specify the case, this paper would be engrossed towards a Canadian non-profit organization named VIDEA. The paper will first evaluate the competitive situation in Canada that is gradually making fundraising harder for a not-for-profit organization. The second section focuses on the local and international regulations that must be followed by VIDEA to operate locally as well as internationally. The third section identifies some successful and unsuccessful promotional strategies that are commonly used by the not-for-profit organizations, which contributes to their success and failure respectively. Finally, the last section will conclude the paper with some recommended promotional strategies that should be followed by VIDEA to gain and capture the attention of the donors and contributors.
The fundraising environment in Canada is extremely competitive and donors, as well as contributors, are increasingly drawn to those not-for-profit organizations that look promising to them (Gierczak et.al, 2016). Here and now, the concept of social well-being and equal income distribution is prevailing all over the world and Canada is obviously not an exception. As a result, the competition is even more scorching in the industry to attract more and more fundraisers while ensuring the long-term healthy relationship with them. However, there are certain issues attached to the fact. For instance, due to a large number of social causes, dilemmas, and social wellbeing programs; there are plenty of philanthropic thespians out in the market, putting their best efforts in gaining attentions and commitments with affluent individuals and organizations (Lasby & Barr, 2015). Some other major factors amplifying the level of competitiveness involves economic dynamics, increased number of regional fundraisers, conflicting interest within existing groups, restricted and confined philanthropic orientation, restricted need for support and perceived values. Increased competitiveness has made it difficult for the donors to recognize the meaningfulness of their charity. Moreover, the regulations imposed by the government has also become firm, which even makes it hard for the fundraisers to gain attention as the imposed policies confining fundraising activities to a certain level (Lasby & Barr, 2015). The whole situation has exaggerated the operational competitiveness for the fundraisers and has hardened their endeavors for preserving their social stature, credibility, and relationships with donors (Global Philanthropy, 2016).
Local & International Regulations for VIDEA
VIDEA is a registered Canadian Charity and a not-for-profit organization that pioneers in establishing first global educational platform at Vancouver Island for promoting intercultural awareness, multiethnic awareness, and understanding of global issues. This organization is actively involved in fundraising for social well-being through workshops, video sessions, curriculum development, conferences, youth programs, internships, aid banners, community partnerships, supportive initiatives and much more. However within this competitive environment, there are certain regulations that are required to be consciously abide by VIDEA in order to be efficient and responsive during its operations (VIDEA, 2016).
The major regulations that are required to be followed by VIDEA or any other local or foreign charity are mentioned below;
The organization must be founded and operated for charitable and altruistic objectives. CRA (Canadian Revenue Agency) and Canadian Courts identifies four major objectives, which involve poverty relieve, education advancement, religion development and other major reasonable purposes that substantially benefit community wellbeing.
Secondly, the organization must consecrate and bestow all possible resources in targeted charitable objectives.
The charitable organization must have its origin in Canada and it must also maintain corporate setup under Canadian Federal Corporation Act.
It must not use charitable revenues for benefitting its members and must remain focused towards communal benefit (CRA, 2016).
They must develop and maintain a distinction between Private Foundation, Public Foundation and Charitable Organization as per CRA and Canadian Tax Act.
Abiding the Disbursement Quota Act, they must endeavor to spend the largest part of earnings over charitable undertakings and least on fundraising as well as administrative expenses by abiding the spending rules set by the authorities for every year.
They are also required to file ‘Registered Charity Information Return’ under T3010A every six months.
Under RC4409, charitable organizations are obliged to maintain adequate records and books to verify their charitable status anytime.
Abiding provincial fundraising regulations and licensing requirement are also obligatory (CRA, 2016).
Successful & Unsuccessful Promotional Strategies Used By Not-For-Profit Organizations
According to Global Philanthropy (2016), Canada is still somewhat restrained and uncommunicative about the philanthropic openness as compared to the United States of America. The major factors involve is the relationship between the volunteers and institutions. The two major unsuccessful promotional strategies used by the Not-For-Profit Organizations involve inadequate donor-focused approach and lack of openness for a reciprocal association. While marketing, most of the not-for-profit organizations fail as they lack in convincing the donors how their campaign would benefit them in sustainable social development. While marketing even the not-for-profit organizations, it must not be overlooked that market always involves exchange. Therefore, while crafting a promotional strategy, it must not be forgotten to add the factors that portrays how the campaign would benefit the donors and their reputation. The second major promotional drawback is the lack of depiction of reciprocal association and openness. This factor is extremely vital for developing long-term relationships with the donors. In contrast, the not-for-profit organizations that specifically focus on empowering their donor and volunteers tend to be more successful. Secondly, when added the aspect of self-interest for the donors, it tends to attract increased attention (Global Philanthropy, 2016).
Promotional Strategies for VIDEA
While undertaking promotional strategies for fundraising, VIDEA must not overlook the fact that market always implicates exchange. Therefore, while shaping promotions, they must never forget to add the factors that portray how their social campaign would benefit the donors as well as their reputation. Moreover, in order to gain increased attention of the donors, VIDEA should incorporate the following factors in promotional strategies.
VIDEA should focus on involving the aspects of self-interest for donors. They must not forget to involve the interest of their target audience while empowering them to achieve their philanthropic objectives.
Their promotional activities must deliver the message of solicitation, encouragement and motivation to the donors while clearly stating their benefits accompanied with a blueprint if requested.
Their promotions must stand out of the constituent groups that tend to develop conflicting interest. They should be efficient enough in delivery distinctiveness.
References
CRA. Official Website. (2016) Retrieved From http://www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/menu-eng.html on February 3, 2016
Gierczak, M. M., Bretschneider, U., Haas, P., Blohm, I., & Leimeister, J. M. (2016). Crowdfunding: Outlining the New Era of Fundraising. In Crowdfunding in Europe (pp. 7-23). Springer International Publishing. Retrieved From http://link.springer.com/chapter/10.1007/978-3-319-18017-5_2 on February 3, 2016
Global Philanthropy. Official Website. (2016) Retrieved From http://www.globalphilanthropy.ca/articles/foreign_charities_operating_in_and_from_canada on February 3, 2016
Lasby, D., & Barr, C. (2015). Giving in Canada: Strong Philanthropic Traditions Supporting a Large Nonprofit Sector. In The Palgrave Handbook of Global Philanthropy (pp. 25-43). Palgrave Macmillan UK. Retrieved From http://link.springer.com/chapter/10.1007/978-1-137-34153-2_3 on February 3, 2016
VIDEA. Official Website. (2016) Retrieved From http://videa.ca/ on February 3, 2016
