Study the Advertising of Charitable Organizations in India

8/6/2019 Study the Advertising of Charitable Organizations in India

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IIPM

Desk ProjectOn

Study the advertising of charitable organizations in India

Subject: Advertising

Submitted To: Submitted By:

Ms.Poonam Gurbaxani Bhavin.V.Rayka

IIPM,Ahemedabad. FW/9-11/ISBE/FIN


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Overview: Charitable organization?

A charitable organization is a type of non-profit organization (NPO). The term is

relatively general and can technically refer to a public charity (also called "charitable

foundation," "public foundation" or simply "foundation") or a private foundation. It

differs from other types of NPOs in that its focus is centered around goals of a general

philanthropic nature (e.g. charitable, educational, religious, or other activities serving the

public interest or common good).

The legal definition of charitable organization (and of charity) varies according to the

country and in some instances the region of the country in which the charitable

organization operates. The regulation, tax treatment, and the way in which charity law

affects charitable organizations also varies.

How to start?

If you care for others and have desire to be your own boss, running an NGO may give

you self satisfaction of serving poor people as well as running an organization.Thousands

of non-government/non-profit organizations are working in India with the objective of

rendering social service and extending help to the poor sections of socities which are

deprived of resources, uneducated and unaware of different programs run by the

government for their welfare. These NGO's are provided financial help by the

Government to help them in their social activities targetted for upliftment of poor people.

These organizations help government to implement its program like AIDS awareness,

eradication of illiteracy, combating sprad of diseases and improving social living

conditions of the poor people. In principle, these organizations work for a noble cause but

there are few among these who misutilize the government fund for accomplishment of

their self interests.


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Section-25 of companies Act in India allows registration of non profit / public charitable

organisations as a Trust, Society, or Non profit Company

These organizations in India are known as non-government organizations and have

independant governing body or a board of trustees. These organizations generally work

for benefit of poor and down trodden people and have a broad mandate of serving

deprived people. These organizations are expected to help people by spreading literacy ,

spreading awareness among people about their rights, making people aware about

different diseases and preventive measures, help people making them self-dependant by

training them in different trades and doing several activities for general public's welfare.

Charitable purpose refers relief of the poor, education, medical relief and the

advancement of any other object of general public utility.

Tax benefits:

y income of the NGO's is exempted from the tax.y Donations to non-profit organisations are eligible for a rebate

Registeration process:

I. Trusts

Indian Trusts Act 1882 is applicable in case of a trust but different states in India have

different Trusts Acts in force.Trust deed : It includes:

y the aims, objects and mode of management .y the minimum (two) and maximum (no limit) number of trusteesy the mode of management


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y procedure for appointment and succession of trustees.y signatures of both the settlor/s and trustee/s in the presence of two witnesses.y it should be executed on non-judicial stamp paper,y the value of stamp paper would depend on the trust property.

The Board ofManagement: The trustees are members of the Board.

y Application for Registration to be submitted to the official in the region where thetrust is sought to be registered.

y Affix a court fee stamp of Rs.2/- to the form and pay registration fee (may vary fromRs 3 to 25, depends on the value of the trust property).

y The application form should be signed by the applicant before the regionalofficer/superintendent of the regional office of the charity commissioner/notary.

y Attach a copy of the trust deed, an affidavit and consent letter with the applicationform

II. Society

y The registration of Societies is goverened by Societies Registration Act, 1860,y Minimum number of management committee members is seveny The Board ofManagement comprises a governing bodyy Registration offices are located at the state (the office of the Registrar of Societies) ,

the district level or the local office of the Registrar of Societies.

y The memorandum of association and rules and regulations are not reuired to beexecuted on stamp paper.


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The application should be submitted in duplicate alongwith registration fee and

following documents:

1. memorandum of association and rules and regulations,

2. consent letters of all the members of the managing committee and

3. authority letter duly signed by all the members of the managing committee, 4. an

affidavit by the president or secretary of the society on non-judicial stamp paper of

Rs.20-/, together with a court fee stamp;

5. a declaration by the members of the managing committee that the funds of the society

will be used only for the purpose of furthering the aims and objects of the society.

III. Section-25 Company

y A section-25 company can be established for promoting commerce, art, science,religion, charity or any other useful object,

y The income generated must be used for promoting the objects of the companyy Dividend can not be paid to the members of the company.y Section 25(1)(a) and (b) of the Indian Companies Act, 1956, are applicable for

eatablishing a company

Procedure:

y There should be a minimum of three trustees;y The Board ofManagement comprises either of a Board of directors or managing

committee.

y An application has to be made in the prescribed form no. 1A, along with a fee ofRs.500/-.


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y Suggest three other names by which the company will be called in case the firstname is being used by other company or not found acceptable by the registrar for

any reason.

y After finalization of the name application need to be submitted to the regionaldirector of the company law board.

The application should be accompanied by the following documents:

y Three copies of the memorandum and articles of association of the proposedcompany, duly signed by all the promoters with full name, address and occupation

and endorsed by an advocate or a chartered accountant.

y Three copies of a list of the names, addresses and occupations of the promoters andmembers of the proposed board of directors,

y Statement about the assets and the liabilities of the association,y An estimate of the future annual income and expenditure of the proposed company

y Brief description of the work, if any, already done by the association and of the workproposed to be done by it after registration

y A statement specifying briefly the grounds on which the application is made.

y A declaration about physical fitness/no criminal proceedings by each of the personsy The applicants have to publish a notice in a newspaper in a principal language of the

district and at least once in an English newspaper circulating in that district


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Procedure of charitable organization marketing(advertising) :

Marketing is an unfamiliar concept for many charitable organizations. It's important that

these organizations understand that marketing is more than just the old sense of making a

sale or obtaining a donation. Marketing is a way to satisfying the consumer and donor

needs, but where does the charitable organization start? Below are eight steps that will

get you started in brainstorming marketing ideas that could make a significant difference

in the bottom-line of your organization.

1. Define your target market, research similar organizations and associations.2. Determine the desired outcome of your marketing efforts.3. Using the information gathered in Step 1 and 2 develop brochures and marketing

materials that describe the benefits, services, donation opportunities, and values of

your organization.

4. Develop a social media marketing strategy. Social media such as Twitter andFacebook can provide you with ways to reach out to those interested in your

organization in a low cost and effective way. Social media works great when it

comes to reaching those who are passionate about causes that individuals hold dear

to their hearts.

5. Develop and maintain a professional internet marketing presence by creating a website. You can use a web site as a great resource to display useful information , news,

monthly newsletters, events, create community, share alternatives to donating

money, and showcase the benefits of your organization.

6. Research and maintain your prospect and customer databases. Do not let theseresources be wasted. Use them for special mailings, follow-up telephone calls, event

invitations, alliance development, research profiling, and market segmentation.


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7. Show and advertise the results and objectives that your organization achieves. Youfill find that it is effective to showcase those that are receiving benefits , inversions,

activities, and projects.

8.Always actively search for alliances with other organizations, commerce,government, advertising media, and business. This step alone often brings the most

benefit to charitable organizations.


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Ways of advertising

ways ofadvertising

branding

website

socialnetworking

sites

printmedia

go out andabout


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Raising money for charities and not-for-profit organisations is a tough business. You are

asking people to hand over their money for little obvious benefit to themselves. That

means you have to be smart. Not only must you convince them that it is the right thing to

do, but also that your organisation is the one that will make the best use of their donation.Just as important is keeping costs low, so that as big a percentage as possible of the

money raised can be used to help worthy causes. Advertising and promotion are

important to encourage the general public to donate to your charity, but your budget for

this area is likely to be fairly small. It is essential therefore that you get the best possible

results for every advertising dollar. Here are five ways that you can promote you charity

efficiently and without breaking the bank.

1.Branding

Even though at first a charity may not seem much like a business, in terms of getting a

message out to consumers there are more similarities than differences. Just as a strong

and consistent brand is important for the promotion of businesses, so it is with charitable

organisations and events. If your brand and logo are instantly recognisable to potential

benefactors then any money you spend on promotional activities, such as posters and

business card printing, will be money well spent. A recognisable brand builds trust with

the public, which is vital if they are to donate to your cause.

2.Website

A website is no longer just an option; it is now an essential tool for any charitable

organisation. A website is one the most cost-effective tools available; it provides a point

of contact between you and potential donors and gives you the opportunity to set out yourobjectives clearly and comprehensively. It also allows you to publicise upcoming

campaigns and events. Yu can use it to showcase your success stories too and nothing

will encourage the public to support your organisation more than a proven record of

success.


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3.Social networking sites :

Using free social networking sites is a smart way to get a web presence without the costs

of setting up your own website. You can use these sites to make contact with new

supporters and to promote your cause. Even if you do have your own web address, using

free blogs to provide information about what your charity is up to, and linking your site

to popular social networking sites, will channel more and more people to your

organisation.

4.Print media

Despite the ever-increasing popularity of electronic media, you should not underestimatethe power of traditional print alternatives. Giving the public something tangible to hold,

look at, and read, is a great way of getting your message across. Professional brochure

and booklet printing is very important as high quality printed material suggests credibility

and reliability, which are essential characteristics if you are to persuade people to part

with their money.

5.Get out and about

There is nothing like actually getting out and talking to people. Find out where and when

local events such as markets, festivals and university orientation weeks are taking place.

Your charitable status may help you negotiate a reduced fee for a stall or stand.

Alternatively you can create your own opportunities with events such as sausage sizzles.

Get brochures, posters and stickers printed with information about your charity and

distribute them as widely as you can.


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Facts of charitable organization advertising:

For charitable organizations and other charities, social media is potentially an incredibly

powerful tool to get the word out, connect with constituents, rally support, and even raise

money.

But, like for any business, social media will only pay dividends for charities if they

utilize it properly. You cant just sign up for a Twitter account , create a Facebook Fan

Page and then watch the donations roll in. It unfortunately just doesnt happen that way.

Getting the most out of social media is hard work and requires patient diligence. But the

eventual rewards are potentially enormous. Here are five essential tips for charities to get

the most out of social media when promoting their cause.

1. Remember: Social Media is a Conversation

No matter what social media sites or tools you utilize to promote your charity Twitter,

Facebook, Change.org, Care2, 12seconds, etc. you wont get very far until you realize

that social media is a conversation. Whatever youre trying to achieve , and wherever

youre trying to reach those goals, the road there is a two-way street.

Youll get a much better return on your investment in social media if you take the time to

actually ENGAGE your followers, friends, and constituents. Dont just broadcast

information, consume it as well. That means doing things like asking your followers for

feedback and ideas, and involving them in the decision-making process at your charity.

Engaging your social media fans and creating a more involved constituency is a long-

term positive for your organization.


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By creating that personal connection with your followers, youll be more likely to turn

those followers into die-hard fans i.e., people that will evangelize your cause, spread

the word, and participate in future campaigns.

2. Be Active and Responsive

On the web, activity is paramount. No one wants to follow a dead Twitter account or

inactive Facebook Fan Page, for example. In order to keep the conversation going and

keep your constituents engaged (see tip #1), you have to constantly keep your social

media presences up-to-date and respond to your followers.

Ideally, this means that you have the resources necessary to hire a social media or

community manager whose sole job it is to think about how to keep activity levels on

social media high and keep people engaged. But at the very least (and perhaps more

realistically for many charities), it means creating a routine where you hit your social

media accounts at least a few times each week. Set up a schedule that assures you get

new blog content out a few times during the week, that you send out a handful of tweets

every day, that you respond to Twitter @replies, blog comments, and Facebook messages

within 24 hours, etc.

Also, pare down your social media presence to only the essential sites. Its better to really

kick butt on two or three sites than to have inactive accounts on twenty. Inactivity only

hurts your brand and turns users away, so be careful not to bite off more than you can

chew. Focus instead on the sites where the people you are trying to reach are the most

active.


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3. Be Personal and Authentic

Since social media is about conversation, you should keep in mind that most people

would rather converse with a person than a faceless brand, so make sure your social

media profiles have personality and authenticity. Youre a real person, so you should

tweet, post, and email like one. Always interact with your followers on social networks

AS YOU. Youre representing your charity in everything you do, of course, but youll

have more success in getting people involved if you arent afraid to share your

personality.

Remember, youre talking with people, not to them, so it helps if they can relate to you as

a person. For charities, the social web is less about marketing and sales than it is about

establishing relationships and connecting with people on a personal level.

4. Encourage Sharing

One of the great things about social media is its power to spread information quickly. By

encouraging your followers and friends on social media channels to share information

about your cause or calls to action, they will have a greater potential to spread virally and

reach new audiences. The best way to encourage your followers to share your tweets,

links, posts, and other messages, is to create an environment where sharing is valued.

That means two things: 1. consistently put out quality content , and 2. lead by example.

The former point is obvious the higher the quality of the content you share with your

followers, the more likely they will be to spread it to their friends. The latter, though, is

just as important. Your constituents will be far more likely to share if they can simply

follow your lead. In other words, if you want your friends to share what you put out, you

should share out the relevant, quality content that THEY publish. You should also use

your social media accounts to publish or link to content from around the web in addition


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to your own content (e.g., share links to articles from outside sources about the topic with

which your charity deals).

5. Make Social Media an Organization-wide Activity

If you really want to get the most out of social media , then you should put as much into it

as you can and that means EVERYONE at your organization should make social

media a part of their daily routine. Make social media participation an organizational

policy, because if everyone at your charity is connecting with people on Twitter and

Facebook, youll be able to engage many times as many people than if just a couple of

people are tasked with using social media tools.

Of course, if you go this route, you should also strongly consider creating a social media

policy to make sure everyone is on the same page. A social media policy doesnt have to

be big and complicated, it simply needs to outline your charitys goals and expectations

and how people in the organization are expected to conduct themselves when dealing

with constituents over social media channels.

BONUS: Love What You Do

If you love what you do, your passion for your charity or cause will show through in your

interactions on social media. People will be more apt to engage with you if they can feel

the passion you have for your organization. As soon as social media becomes just a

job, youre in trouble. If you have fun with it, though, the results will follow

Study the Advertising of Charitable Organizations in India

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