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Instead, cause-related marketing came screaming into the board room, demanding the company get something in return for its efforts: publicity and image enhancement -- pure gold in the modern economy -- and more sales. It dealt what would be a fatal blow to its older sibling by shifting the mindset in corporate America away from the mushy softness of "charity" to the business-savvy world of strategy.

From that day forward, companies felt the heat of competition as they came up with ever more sophisticated ways of supporting the community while serving the company’s interests. The goal was to get more targeted and more strategic. Cause-Related Marketing soon grew into "Strategic Philanthropy" in its toddler years. Strategic Philanthropy was all about moving the company past the easy PR splash to look for new and sometimes subtle market advantages to feed the company's bottom line through corporate giving.

Some looked at it as a way to penetrate new markets. If you wanted to reach Latinos, for example, you might donate to English as a Second Language (ESL) programs and inner city schools. Then, tie strings to the donation to be sure those who benefited knew who was behind it through co-branding course materials. Or, you might foster dependency on your products through generous donations. Apple created a whole generation of Mac enthusiasts by getting the jump on Microsoft and IBM with their computer donation program.

As strategic philanthropy grew, it became more talented and multifaceted, so much so that the term "philanthropy" no longer aptly described it. It had grown to adulthood, now known as "Strategic Corporate Community Involvement". With strategic corporate community involvement, the company uses multiple channels (human and material resources) to achieve multiple goals (marketing and organizational effectiveness) that are aligned with overall corporate strategy.

For example, you might find a clothing company whose executive team has decided to support Race for the Cure. They might choose to do so because market research shows that support for women’s charities is an important determining factor for purchases made by the company's target demographic.

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Charity