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The American Way

Edward Wake-Walker, the RNLI's Public Relations Officer, visited the United States to look at...

Charities - the American Way The PRO'S visit to the USA was a Churchill Travelling Fellowship, and the entire costs of the visit were met by the Winston Churchill Memorial Trust.

This article is an abstract from his report to the Trust. 1 he cry of 'Eureka' is not commonly heard among British students of the American way of life, even when one such British subject has been given the rare opportunity of a seven-week tour of the United States to see how American charities promote themselves. The deluge of information streaming across the Atlantic is well enough established to allow little that is entirely new to escape practitioners in the field of PR and marketing techniques in the UK. However, there was a great deal to be gained from the visit.

By comparing the public relations officer's task at the RNLI with that of transatlantic counterparts, by spotting the differences as well as the similarities and by examining areas of activity more, or Jess, developed than in this country it was possible to gain valuable insight into how the RNLI should look to the future in PR and marketing.

There are one or two almost forgivable generalisations about the differences in the physical, social and political climate in which US charities, or rather non-profit organisations as they prefer to call themselves, exist when compared to the UK.

First, the size of some of the national organisations is a culture shock to be overcome.

A common experience for Brits in America, of course, but with the RNLI one of the largest charities in the UK with an income of £40m a year one cannot fail to blink at the $336m raised each year, for example, by the American Cancer Society.

Second, national non-profits in America are much less centralised in their organisation, and many national offices mainly provide guidance and advice to their branches in the various states. The national offices receive little or none of the funds raised in the field and leave decisions on expenditure to state or regional boards.

The incentive to give to charity is still greater for the American individual and corporation, although the days when the entire cost of a $500 ball ticket could be written off against tax are over. Now only the part which represents a donation is tax-deductible, but there still exists in America the sense that altruism carries greater reward, or at least rebates, than it does in the UK.

It is not only, or even mainly, the background of tax advantages which makes for such strong support of non-profits in the States. Americans have throughout their history looked to their fellow man rather than a government to help out those in need.

Comparisons may be odious, particularly when they are based on surveys which were not asking exactly the same questions, but in a Charities' Aid Foundation survey published in 1989 the average individual's annual donation to charity in Britain represented 0.75% of earnings, while a 1987 survey in America revealed that the average US household donation was twice as high at 1.5% of its annual income.

A facet of charitable organisation which has no real equivalent in this country is the 'United Way', which could almost be described as the voluntary taxation system of America. Those who give to their local, and autonomous, United Way are usually happy to leave it to others to decide how the money should be spent, and local United Ways each have a committee to determine who benefits.

And there are plenty who like to give this way. In 1988 their contributions topped $2.78 billion, and of that more than 60% came from corporation and small business employees. Collecting funds in the workplace is huge business in America, and one which is dominated by the United Way.

Tax-advantageous payroll giving was intended to encourage similar activity in the UK, but employers and employees in the UK have not showed so much enthusiasm.

ADVERTISING Advertising is one method of spreading the word that all non-profits are prepared to use in some form or other, but few are prepared to pay for air time on television or radio for two main reasons.

The return does not justify the cost, and many still rely upon free exposure provided by Public Service Announcements. Until recent deregulation all TV and radio stations were bound to air PSAs, but most stations will still provide free space with one eye on their next licence renewal application. The Community Service Director of a Washington TV channel admitted that since PSAs ceased to be mandatory they have less prime time 'slots', but he still sifts through 30 to 50 videos and over 300 written requests each week to select 155 for transmission.

In general appeals for funds stood little chance, although some were occasionally played early on a Sunday morning - or at some other time when there was little danger of many people listening! The only exception was a major disaster, and two struck while I was in America: Hurricane Hugo quickly followed by the San Francisco earthquake. It very soon became clear how appeals were given generous airtime then, both editorially and in the commercial breaks.

The business of obtaining free advertising is an important part of any non-profit's communications department, and the advertising industry sees it as their job to help them - and there is even a non-profit organisation set up by the industry to do just that.

The Advertising Council adopts five campaigns a year, recruits a volunteer advertising agency and finds free space for the advertisements.

Although space and ideas are free, advertisements still cost a considerable amount to produce, and a recent campaign run through the Advertising Council cost $500,000.

According to an agency, the kudos of handling a respected charity's account is equal in value to the commission they might receive from a commercial client, and both the agency and the non-profit client agreed that in spite of the complimentary service provided, the client controls the campaign.

EDITORIAL COVERAGE One fear among UK charities when they became free to advertise on television and radio was that editorial coverage might diminish. So, how do American organisa-tions ensure that media editors take notice of them? It seems they need to be in the thick of a national catastrophe, or to create their own national event, such as the American Cancer Society's annual Smoke Out Day. A less dramatic alternative is to be seen by the media as a reliable authority as a source of opinion and stories about their cause. A recognised authority soon becomes a reliable source for the press.

Some newspapers or radio stations like to achieve their own charitable objectives and one in San Francisco, for example, runs its own charity, organising a huge running race in the city every year to raise money.

Most national offices of the non-profits encourage their regional colleagues to create strong links with local media, as does the RNLI, but by their own admission, the San Franc isco chapter of the American Red Cross was not well set up when the earthquake struck last October, and illustrated several potential pitfalls.

For example, the press had access to a large number of sites where the Red Cross were administering aid and were thrusting microphones in front of anybody wearing a Red Cross badge. One volunteer, when asked what was most needed at that moment, replied that he needed a particular type of window winder. Within minutes, and for several hours, the phone lines were jammed with offers of window openers.

It was interesting how differently they were able to deal with Hurricane Hugo.

Knowing in advance that disaster would strike the media director flew down in readiness for the storm, as did all the press. By the time the storm hit the PR representatives of all the local Red Cross chapters had been briefed, and approaches made to all TV and radio stations offering experts to provide useful information.

As a footnote it is perhaps comforting to discover that there are those who suffer similar problems in attracting press attention as does the RNLI. Portland Mountain Rescue is an organisation not dissimilar in constitution to the RNLI. It had a familiar tale to tell about difficulties in interesting the press in a volunteer team which had been out for hours searching for lost climbers, with only the final helicopter airlift mentioned in the news. Aircraft seem so much more glamorous to the press than their surface-borne colleagues.

BRINGING IN THE FUNDS The devolved nature of all large non-profits in America means that to find out how fund raisers go about their business you need to visit the state headquarters, away from national offices.

In a recent survey Americans had shown their preferences to different fund raising approaches: those made at work were among the most popular, those at the home least so - apart from direct mail which does not appear to worry them.

The level of infiltration into the work place achieved by the United Way is remarkable and many companies form their own committees to organise United Way collections. Impressing your boss and your peers is a major spur to those who gi ve or collect money for the United Way at work, and the company also gains kudos if its employees are seen to return a generous amount.

The organisation does however work hard to keep a high profile in the workplace and runs its own programmes for the benefit of employees. Courses can be on subjects as diverse as how to combat stress or where to find child minders for working mothers.

It is difficult to refuse to help an organisation which is already helping you, as one Chapter of the American Red Cross also discovered. In one direct mail campaign they experimented with an area more accustomed to seeing the Red Cross ministering to the neighbours than asking for money. Responses came from 20% of the mailing list, compared with a 3% return from the normal, more affluent target groups.

DIRECT MAIL AND TELEPHONES The USA citizen expects direct mail and responds well to it. The American Cancer Society works its existing donors hard. In Indiana for example there are seven mailings each year, and everyone who has given once - even to house-to-house collectors - will have their name and address added to the list and be sent a couple of reminders in the year.

Those who do not respond are likely to be ' reminded by a telephone call thanking them for their past support and gently suggesting it is time for another - at a figure slightly up on their previous contribution.

People are reportedly not offended and with local calls costing nothing, and the staff volunteers, the time is profitably spent.

One local charity was planning a similar exercise but this time the calls would be made to people who had not previously supported their cause, and whose names and telephone numbers would be obtained from bought lists.

LEGACIES 'Showing gratitude in advance' is one way that American non-profits attempt to encourage legacies for their cause. In some cases, such as appeals by universities and colleges, adonor-to-be can have a new building named after him during his or her lifetime - if they have provided the money for it in their will.

None of the organisations enjoyed a legacy income as proportionally significant as the 60% of the RNLI, with the American Cancer Society coming closest with about 26% of the income in its 1988 report.

IMPLICATIONS Although there are many differences between US non-profits and UK charities, and indeed between our two societies, there are also similarities. The chance to examine the American way and to compare it with our own was indeed valuable, and although some of their methods may not yet translate into the UK's way of thinking there is no doubt that most American trends eventually find their way across the Atlantic.

Forewarned is forearmed! There are more ways of raising money than there are charities, and this applies to non-profits in the USA. The following are just some of those encountered in America, some of which may translate to Britain - and some may not… Nationwide links with large consumer companies are less prevalent in America than in the UK, although they do exist often on a more local scale.

For example large supermarkets were persuaded to give 5% of their profits for one day to the American Cancer Society, and celebrities were invited to the stores on a day of the week which would normally have been a slack one to attract business.

Probably the most famous promotion in the States is Paul Newman's vinaigrette dressing.

Bearing his name and face on the label it is a bestseller throughout America and every cent of the considerable profit it makes goes to charity.

One organisation brings in more than 90% of its funds in what could be described as the biggest jumble sale in the world. The public contributes any item, clothing, household goods and even cars, which they no longer need, and these are sorted and resold at shops throughout the USA.

March of Dimes, a birth defect charity, enjoys the patronage of some of the most famous names when it comes to fund raising events in New York and organises an annual celebrities' cookery evening. A long list of 'names' are invited to prepare their own recipes which are judged by a panel of food critics. Tickets cost $750 each and the guests are not expected to eat what the celebrities cook - a professional banquet is on hand.

The event raised $818,000 last year.

From the sublime to the ridiculous, and from the highlife of Manhattan to the rudiments of agriculture, there is a favourite ploy among Louisiana farmers which has raised a fair few dollars, as well as eyebrows, for the American Cancer Society.

A scaled-down diagram of a fanner's field is divided into squares and, when all of the squares have been sold for a dollar, a well-fed cow is released into the field in question.

The animal is followed by the watchful participants until nature inevitably takes its course... and the winner is the 'owner* of the square in which the first cow pat lands. Could it ever catch on in our agricultural counties? A more sophisticated form of gambling was used very effectively by Ihe United Way in New Orleans at a casino evening. Chips are bought and lost in the usual way until at a pre-ordained time the gaming ends and an auction of donated goods is held. Anyone fortunate enough to be up on the night can then bid using their chips, which cannot be refunded in any other way.

Finally, I wonder if anyone has spent an evening at an Auction of Bachelors in this country? In this hugely popular fund raiser a string of bachelors is paraded before an all-female gathering which is invited to bid for the pleasure of a date with the man of their choice. THE US COAST GUARD While the US Coast Guard is government funded, and is not a charity like the RNLI, carries out many similar functions to the Institution and their Washington headquarters was an obvious port of call while in the US.

The Coast Guard deals with a large and varied amount of work, from pollution, lifesaving, drugs control, fishery protection to boat safety, and the Public Affairs Department's work-load is high. The Coastguard has advanced systems which include a direct computer link with all stations and regional offices, and one which provides Associated Press Agency news reports of all Coastguard associated items.

The Coast Guard also produces Public Service Announcements which are handled in exactly the same way as those sent in by nonprofit organisations.

Although the Coast Guard does not have to appeal for funds like the RNLI a good public image is important as it depends on politicians looking favourably on their budget allocation each year. Their public image is good on the whole, although they have a disadvantage in having the authority to board a vessel and inspect it for safety devices, which gives people the impression that they are invaders of privacy..