I was having a discussion with some people from a charity organisation about the shape of the charity market and how there is a limited amount of funds for charitable contributions. This market was constrained as it was suggested that 25% of the population donates; it sounds right. As a result there was a fear that charities compete and they cannibalise the “supporters” or donations market.  I was not sure that this was a large problem with all the new and old types of ways charities raise money.  While the donations market is limited there is a larger market surrounding it  which means there is really two markets here:

1) pure donation

2) normal purchases of products that people make, but in this case happens to benefit charities.

The first market is clear and well defined. A supporter gives money, gets a tax deduction and charity gets money.

The second market is not well defined and overlaps with the commercial market. In this market donor fatigue takes a long time to set in and for most consumers this budget is not part of their charity budget. For example, take a look at Christmas Cards or used books. Christmas Cards, I, like you, need them every year to send to friends, I can get them from the store or a charity.

If a charity reaches me first, I buy there. The money from this does not come out of my charity budget but my Christmas budget. I feel good that I know some money goes to the charity but it does not reduce my notional charity budget.

Similarly with used books, I buy what I want or need from Abebooks or a church sale, but when I buy from a church I again do not reduce my budget for charitable contributions, but my book budget is reduced.

Overall, yes the second market does reduce my disposal income but not to a degree that it effects the money I give to a charity. In this regard LetsGoForDinner.com will grow the market for charitable contributions because it does not consume the charity/donations budget.

Does this resonate or does someone have completely different data?

Cheers

We met another charity today that liked our idea;  Craig had an early discussion with them 18 months ago and they liked it then and still like it.. brilliant.  I will not disclose who it is yet but suffice to say it is a good fit.  We hope they will join us because the people seem great and they asked very good questions.  We will be sending along additional information so we can begin to advance the discussions.

Another charity we spoke previously to came back to us today and they are progressing towards launch.  Yeah!

We think we will target a small number of charities per city and grow with some of them into national and international relationships… how do charities feel about this?

Also, do they worry about cannibilisation or competition for charity money?  We think our product opens up new markets as it does not compete with existing charity fund raising activities, it is a product that anyone can use… what do other you people think?

Let me know

Cheers

Having to raise money for my kid’s schools is a lot of work and we all know how it works: you bother the neighbours with the kids in tow pushing the raffle tickets along with the kids smiles, or you wind your way around The Office putting the arm lock on all unsuspecting colleagues. In the back of your mind you know that some people in future will start “ducking you” in order not to buy the next tickets for the prizes they really need like the Barbie doll set for the single guy. Not to have to do this would be great.

So when I was told about the plans for a new way to raise money for charities by selling restaurants certificates, it all made sense. Why? Restaurants have a terrible time using traditional media to reach and drive people to their restaurants. I know charities every year have to go out and get people to give again … after a few years/times “donor fatigue” sets in. It happens to the best of us.

Now all that charities have to do, instead of selling coupon books or raffle tickets, is sell the LetsgoForDinner Loyalty Card. But it is even easier than that, LetsGoForDinner takes care of all the selling and everything else. LetsGoForDinner crafts the offer, signs the restaurants, processes the purchase and sends the card out. All the charities have to do is email /mail their supporter base and tell them about the Loyalty Card.

The Loyalty Card sells for $25 and this generates $12.50 for the charity. The Card entitles supporters to buy Loyalty Certificates (like gift certificates) at half price (50% off) e.g. $50 Loyalty Certificate costs $25 and entitles you dine at some of Vancouver’s best restaurant. The best part is that every year, when the supporter renews another $12.50 goes to the charity.. the charity does not have to do anything extra.. a cheque arrives at the end of the month at the charities office.

Everybody wins: charities get easy revenue, consumers get lower priced meals and restaurants get customers.

Let me know what you think? Can we make it better for charities?

I’ve got a ton of people leaning over my shoulder shouting blog tips in my ear, but I’m going to go ahead and say that this is my first blog post. So, Cheers!

– Francis