Are some charities becoming too commercialised?

Tobin Aldrich, executive director of communications and fundraising, WWF UK

We shouldn’t confuse being professional and becoming commercialised. Charities are definitely becoming more business-like in how they operate and are managed, but that’s not the same thing as becoming overly commercial.

To be true to their mission, charities should operate in the most effective way possible and that means having effective strategies and strong funding. Charities need to understand and respond to the markets in which they operate, including meeting the specific requirements of their funders. All this requires effective and professional management with reasonably paid staff.

But the mission is the key, and the needs of the beneficiaries must remain paramount. As long as this is kept clearly in view, charities will manage to avoid being too dominated by commercial pressures.

Of course there are always exceptions, but most non-profits I know, including the largest charities who are sometimes criticised for behaving like businesses, get this balance about right.

Caroline Gibbs, head of planning, The Good Agency

‘Commercial’ is all too often perceived to be a pejorative term in the context of the charity sector. If the question is asking whether charities are becoming more professional in their approach and more modern in their outlook, then I would say yes, and this is a good thing. Charities are, after all, operating under the same basis as a business of needing money to achieve their vision.

But charities have something commercial businesses would kill for: a highly compelling story based on human values. How charities engage people with that story is as important as the story itself; those that forget to bring people into their story for the sake of a quick buck or high-volume sign-ups, do so at their peril.

There are exceptions, though. It doesn’t seem wrong for a charity to develop a product to raise significant amounts if none of the purchasers go on to give further support, even though this approach may be deemed ‘too commercial’. Charities need to respond to the encroachment of commercial brands that sell products in aid of a cause, which the purchaser rarely goes on to support.

Stephen Pidgeon, fundraising consultant, and trustee of the Institute of Fundraising

Central to this question are the thoughts that everything ‘commercial’ is bad and that bumbling amateurism is the British way of doing things. The same idea is wrapped up in the question, “are some sports becoming too commercial?”

In answer to the sports question, I am immensely proud we lead the world in cycling simply because exceptional people decided to apply real thought to training, team spirit and advanced engineering skills.

Good commerce involves clear strategic vision, exceptional customer focus and a passion for quality. So my answer to the charity question is no, very few UK charities are commercialised enough and all need to be.

What makes the few good ones stand out? It’s because their message is clear and passionate, its delivery is both consistent and attractive, and people feel good when they support them.

Lucy Gower, independent fundraising consultant and trainer

According to the dictionary, ‘commercialised’ means ‘making a profit’, but in a way that is exploitative or at the expense of quality.

Commercial businesses operate in the way they do because it is the most effective way of making money. If charities are not raising money and awareness in the most effective way possible, then we are doing a disservice to the beneficiaries that we exist to help.

Commercial organisations invest time and resource in understanding their audiences, and test and develop messages, products and services that meet their needs. It is not usual for charities to invest in this way.

We live in a commercial world and in order to survive charities must be bolder about investing resources to develop a more commercial approach. This doesn’t mean compromising on quality or values.

Anything less is not doing the best we can. I don't think the majority of charities are commercialised enough.

Paul Stein, director of fundraising and marketing communications, World Jewish Relief

In short, no. I still sense that we have much more to learn from our commercial counterparts, especially smaller and medium-sized charities. Too often our messaging is excessively complex and inconsistent, hampering our ability to raise awareness and funds.

We fail to be sufficiently focused in our strategic planning, too, lacking a boldness and ruthlessness that will ensure focus on the areas of greatest return. We still look to appease stakeholders and traditionalists within the organisation, hampering progress. We must ensure that trustees, rather than leaving their commercial sense at the door (as often is the case), challenge us to new heights of professionalism and efficiency.

We must also adapt to meet the requirements of modern major donors, who, used to operating in a commercial environment, seek to invest in organisations that provide them with a catalysing return on investment. We need to engage them more creatively, rather than donating token amounts from afar.

For me, the end justifies the means. As long as we don’t lose sight of the needs of our beneficiaries, and retain our integrity, commercialisation can only strengthen and enhance our critical work.

This article first appeared in The Fundraiser magazine, Issue 27, March 2013