IIPM

Desk Project On
Study the advertising of charitable organizations in India

Subject: Advertising

Submitted To:
Ms.Poonam Gurbaxani IIPM,Ahemedabad.

Submitted By:
Bhavin.V.Rayka FW/9-11/ISBE/FIN

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.

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 y

income of the NGO's is exempted from the tax. 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 y y

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

y y y y

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

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

y

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

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

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

Attach a copy of the trust deed, an affidavit and consent letter with the application form

II. Society
y y y y

The registration of Societies is goverened by Societies Registration Act, 1860, Minimum number of management committee members is seven The Board of Management comprises a governing body 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.

The memorandum of association and rules and regulations are not reuired to be executed on stamp paper.

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 y y

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

Procedure:
y y

There should be a minimum of three trustees; The Board of Management comprises either of a Board of directors or managing committee.

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

Suggest three other names by which the company will be called in case the first name is being used by other company or not found acceptable by the registrar for any reason.

After finalization of the name application need to be submitted to the regional director 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 proposed company, duly signed by all the promoters with full name, address and occupation and endorsed by an advocate or a chartered accountant.

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

y y

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

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

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

y y

A declaration about physical fitness/no criminal proceedings by each of the persons 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

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 and Facebook 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 web site. 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 these resources be wasted. Use them for special mailings, follow-up telephone calls, event invitations, alliance development, research profiling, and market segmentation.

7. Show and advertise the results and objectives that your organization achieves. You fill 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.

Ways of advertising

branding

go out and about ways of advertising

website

print media

social networking sites

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 your objectives 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.

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 underestimate the 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.

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 longterm positive for your organization.

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.

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

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