Lecture Session 1 (out) (1)

9/6/23 1 Dr. Irene Lu, Sprott School of Business BUSI 4203 Marketing in Not-for-Profit Organizations 1 Overview of Canadian nonprofit sector Learning Objective #1 2 Non-profit institutions 1. Government non-profit institutions 2. Business non-profit institutions 3. Community non-profit institutions • Source: Statistics Canada (2022) An overview of the Non-Profit Sector in Canada, 2010 to 2020. 3 1. Government non-profit institutions • E.g., hospitals, residential care facilities, universities, and colleges. • self-governing and exist independently of the government, but heavily influenced by the government. • They are classified as part of the government sector by conventional macroeconomic measures. . 4 2. Business non-profit institutions • E.g., chambers of commerce, business associations, protection services, and condominium associations. • Do not fall under the direct control of the government • Offer goods and services at low cost, and are constrained in their ability to redistribute any surplus they may generate. • In standard macroeconomic measures, they are classified into the business sector. 5 3. Community non-profit institutions • e.g., community food services, community housing, youth and family services, museums, emergency relief, religious organisations, advocacy, and sports and recreation. • not heavily influenced by the government • provide goods and services to households for free or at minimal cost. • They are referred to as non-profit institutions serving households (NPISH) in standard macroeconomic measures. 6

9/6/23 2 • Charitable organizations: must be formally registered as such with the Canada Revenue Agency. • Eligibility for charitable registration status: • the relief of poverty • E.g., food banks, soup kitchens, and low-cost housing units • the advancement of education • E.g., colleges, universities, and research institutes • the advancement of religion • E.g., places of worship and missionary organizations • other purposes that benefit the community • E.g., animal shelters, libraries Charitable organizations 7 Charity data research tool in Canada • Charitydata.ca provides information on registered charities in Canada 8 CANADA'S SOCIAL SECTOR POPULATION 170,000+ 8.7% The sector represents of Canada's GDP... $189B ...which is approximately CANADA'S CHARITIES & NONPROFITS CANADA'S CHARITIES & NONPROFITS Nonprofit Institutions Serving Households provide goods and services to individuals & groups of people at minimal to no cost. Households These include chambers of commerce, business & professional associations, airport authorities and some amusement and recreational organizations. Business These include hospitals, residential care facilities, universities and colleges. Government There are an estimated 170,000+ registered charities & nonprofits in Canada. (86,000 registered charities) They contribute to strong & healthy communities. In addition to their social contributions, charities & nonprofits are a large and vital part of the economy. 4.80% From 2007 to 2019, GDP from nonprofits serving households and business grew at a rate of 3.22% The overall economy grew by · youth & family services · housing assistance · places of worship · food banks · recreation & social clubs · museums · foundations For example: Charities & nonprofits come from 3 different areas of the economy: 9 ÷ + × − a b c 2.5 million people The sector employs approximately which makes up 12% of the economically active population. 41% of Canadians 13 million volunteers! are volunteering their time to charities and nonprofits—that's 1.7 billion hours Volunteers contribute almost of their time each year to organizations and causes they believe in. 4 in 5 Canadians Our sector has a good reputation. said they have a lot or some trust in charities. $14+ billion annually Canadians give to registered charities. More than ¾ of donations go to the "Big Four" causes Religion, Health, Social Services and International organizations. 860,000 full-time jobs This is equal to An average volunteer contributes 131 hrs per year 2.5 hrs per week OR imaginecanada.ca/en/360/sector-stats More information at imaginecanada.ca CANSIM Tables 36-10-0648-01 & 14-10-0393-01 (Q4 2020) CANSIM Tables 36-10-0648-01 & 36-10-0103-01 (Q4 2020) Survey of Giving, Volunteering and Participating, General Social Survey (2018) SOURCES Imagine Canada, 30 Years of Giving (2018) Muttart Foundation, Talking About Charities (2013) CANSIM Tables 36-10-0616-01 & 36-10-0103-01 10 Why study nonprofit marketing Learning Objective #2 11 Reflection How our lives and the world have been influenced by nonprofit organizations? 12

9/6/23 3 Why study nonprofit marketing? (cont'd) • Business marketers who interact with the nonprofit world through activities like cause related marketing, strategic partnerships, volunteerism, would benefit from marketing's applicability in the context of the nonprofit sector. 13 • Nonprofit sector is in the behavioural influence business . E.g., Behavioral challenges in nonprofit sector 14 • Give up economic assets • Give up time and energy • Give up old ideas, values, opinions • Give up old behaviours, undertake or learn new behaviours Behavioral challenges in nonprofit sector (cont'd) 15 What is social marketing Learning Objective #3 16 What is social marketing? Definition by Lee, Kotler, Colehour (2023) (a) influencing behavior change (b) utilizing a systematic planning process that applies marketing principles and techniques (c) focusing on priority audience segments, and (d) delivering a positive benefit for individuals and society INFORMAL: "Influencing Behaviors for Good." 17 • Improving Health • Preventing Injuries • Protecting the Environment • Involving the Community • Enhancing Financial Well Being Application Examples 18