Navigating the Terrain: Challenges and Solutions in Canadian Non-Profit Marketing Strategies

Canadian non-profits play a crucial role in addressing societal issues, but the path to successful marketing is riddled with unique challenges. These obstacles, both structural and organizational, often hinder the development and execution of effective marketing strategies, be they digital or traditional.

Common Non-Profit Challenges

Limited Budgets and Resources

Needless to say, one of the perennial struggles for Canadian non-profits is operating within tight financial constraints. Limited budgets often restrict the ability to invest in comprehensive marketing campaigns.

Over the last couple of years, developing collaborative partnerships with for-profit organizations has proven to be one of the most effective ways of getting around this. An exemplary case is that of Second Harvest. A food security non-profit, their goal is to ensure that no Canadian is left behind food-wise. In 2018, they developed the Food Rescue App, aggregating surplus food from more than 2,500 businesses into the hands of more than 2,300 nonprofits working with those in need. They did this in partnership with Uber Freight for the food delivery, Post Media to expand their message and Loblaws as a funder. The digital platform has now expanded and now also helps distribute federal funds to frontline organizations and workers.

Non-profits have also developed unique partnerships to stand out in a crowded field. Charity Village developed a podcast, Charity Village Connects, to discuss topics related to non-profits with leaders in organizations that work in tandem to them, such as Let's Talk Science, the BC Museum's Association and Metro Toronto Movement for Literacy. These conversations help to promote Charity Village and the organizations themselves, showcasing value for those interested in the field.

Government grants can really help push partnerships forward as well. Luminato Toronto worked with Nordicity, and with funding from the Canada Council of the Arts, they developed Digital Outdoors, a digital technology solution to measure outdoor event engagement. This digital solution will help Luminato develop a better arts experience and provide them with strong audience analytics, paving the way for better decision-making in their marketing. It will also help develop a stronger data infrastructure so they can understand their audience better.

Insufficient Data Infrastructure

Many non-profits lack the robust data infrastructure required for effective targeting and personalization in marketing efforts. One possible solution for this is to implement Customer Relationship Management (CRM) systems to better find targeted audiences. Investing in CRM systems allows non-profits to centralize and analyze data, and better find their ideal audiences throughout the donor cycle.

An example of how to properly use a CRM system is the Canadian Cancer Society (CCS), which implemented a system to better understand donor preferences and behaviours nationwide. They integrated over 20 million contacts and related engagement systems to better understand their donors and bring together different stakeholders in the organization. The CCS also saw collaboration increase after the new system was in place, as it enhanced project management across different teams - such as volunteers, staff and doctors. Moreover, having a consolidated CRM system allowed for easier event planning, and the marketing of such, which helped the organization raise funds during critical times, such as the COVID-19 pandemic.

Resistance to Digital Transformation

Non-profits may face internal resistance to adopting digital strategies due to a lack of understanding or fear of change. After the pandemic, this change was needed, and one of the most common ways of fighting against this organizational challenge involved digital literacy training for staff and individuals within the non-profit’s targets, as well as donors.?

The Canadian Government launched the Digital Literacy Exchange Program, and non-profit organizations have been taking advantage as they reach people and organizations who face barriers when participating in the digital economy. One great example is the CNIB, which is partnering with different institutions to help Canadians living with sight loss, helping them train their digital literacy skills. Initially, the training was internal, but after the 2nd phase of the project, it was meant for every one in their target communities. From 2019-2022, this training reached more than 9,000 unique participants, and 96% of respondents reported increased confidence in internet usage.

Another great example of an organization growing because of digital transformation collaborations is CanadaHelps. During the pandemic, they announced the launch of Cause Funds, a platform that would enable people to donate to many charities supporting similar or equal causes. Within 34 days, The Black Solidarity Fund (helping charities focused on the advancement of Black Canadians) received $1.9M from 5,188 supporters; and the hospital fund received over $4.5M.?

As the donor experience changes, it’s imperative that nonprofits adapt to the ways donations are being transferred and enhance their digital skills to match donors’ behaviours, digitally and offline.

Balancing Digital and Traditional Channels

Striking the right balance between traditional and digital marketing channels poses a challenge for non-profits trying to reach diverse audiences. As omnichannel marketing becomes the norm, integrated campaigns will leverage the strengths of both traditional and digital channels, and digital is becoming a huge donation center for nonprofits. A recent study found that non-profits that do not have a strong digital presence may lose out on influencing 51% of the donor base in North America. While digital is imperative, brands that utilize both digital and analog see the best results.

Habitat for Humanity Canada implemented an omni-channel 3-year strategy in 2019 across digital and analog that produced fantastic results. With the goal of integrating digital and direct channels (including mail), they focused on the donor experience. This led to an increase of the average gift by 32% and saw year-over-year donation growth of 118% by also implementing strong paid ads campaigns that matched their email and direct mail initiatives. Their focus on growth and measurement allowed them to see which areas to focus on and where to pull back, allowing them to increase ROI efficiently.?

Measuring Impact and ROI

Non-profits often struggle to measure the impact of their marketing efforts and demonstrate a return on investment (ROI). The truth of the matter is that digital platforms were created with revenue metrics in mind, and as such, optimizations are often focused on return on ad spend. Nonprofits have slowly been shifting their focus to outcome-based metrics, rather than just output as the ultimate optimization level, and those that were early in this shift, saw great results.?

Oxfam International developed its year-end campaign by analyzing which creative and campaign tactics developed the best ROI over the previous two years and developed digital ads and emails with both a retention and new user acquisition strategy in mind. Over the month it ran, the total donations beat the previous two years, and the average gift was 16% higher than the target.?

As non-profits use grants, such as Google Ads Grants, shifting the mentality to ROI can help grow and expand the user base. Of course, digital channels can also help increase reach and develop conversations with hard-to-reach user bases if done correctly. While ROI is a great metric, reach among specific audiences can also showcase impact and be valuable for nonprofits with specific audience targets.

Conclusion: Overcoming Challenges for Collective Impact

The challenges faced by Canadian non-profits in developing and executing marketing strategies are diverse, ranging from financial constraints to internal resistance. However, by embracing collaborative partnerships, investing in digital infrastructure systems, welcoming the digital age, balancing both analog and digital channels to success, and shifting their mentality towards a more ROI-driven one, non-profits can overcome these challenges. As the non-profit landscape evolves, strategic solutions and a commitment to adapt will ensure that these organizations continue to make a meaningful impact in the communities they serve.