A Brand-Driven, Viral Fundraising Business Model

One of my students introduced me to SocialVibe—thanks, Tao! It is another interesting business model—a combination of fundraising for non-profits and cause-related marketing for brands. As Tao pointed out, the focus on social networks also makes the efforts viral.

Leading brands have signed up as sponsors. Consumers who want to raise money for a cause (members) select their cause and create a widget (they call it a badge) using graphics supplied by the non-profit and the sponsor. The member then posts the badge on a social networking page and earns sponsor points by getting donations there. As the site points out, it’s a chance to do good without the member committing a lot of his or her own funds. For the brand, it’s impressions on the social networking sites that are probably a lot more effective than paid advertising impressions.

Some causes are seeing it as an especially effective way to reach certain target audiences. To Write Love on Her Arms is a teen suicide-prevention advocacy that is actively using the viral power of the site. But others are going beyond just the obvious teenage target audience. A Canadian publication talks about using sites like SocialVibe to get out messages that attempt to stem the tide of obesity and the related problem of Type 2 diabetes.

Another active user is Charity:Water, a non-profit with another “new media” business model of its own.

It is impressive and heartening to see non-profits making effective use of the Internet in their fundraising efforts. It is also impressive to see corporations and brands joining in these efforts in a way that is beneficial all the way around.

It’s a good thought for the holiday season!