Definition: The Foundation Center defines cause-related marketing (CRM) as "the public association of a for-profit company with a nonprofit organization, intended to promote the company's product or service and to raise money for the nonprofit."
CRM is different from corporate philanthropy because the money gifted is not an outright gift to a nonprofit and therefore is not tax-deductible.
The term, "cause-related marketing," was used first by American Express in the 1980s in regard to its campaign to raise money to help restore the Statue of Liberty. American Express made a one-cent donation to the Statue of Liberty whenever an American Express charge card was used. The result was a 45% increase in the number of new card holders and card usage increased by 28%. Of course, millions of dollars were raised for the Statue of Liberty.
CRM is both useful and controversial. Questions raised include the ethics of lending a nonprofit's name and reputation to corporations.
Also Known As: CRM
Examples:
The corporation was looking for a nonprofit partner for a cause-related marketing campaign.
