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Cause marketing is defined by Wikipedia as "a type of marketing involving the cooperative efforts of a for profit business and a nonprofit organization."? Further, "cause marketing differs from corporate giving as the latter generally involves a specific donation that brooks orange jersey is tax deductible, while the cause marketing is a marketing relationship not necessarily based on a donation."? In this article we will show that while cause marketing might be beneficial to the corporate partner it is actually detrimental to both the nonprofit organization as well as the individual donor.

The tangible benefits for corporate cause marketing participants are clear.? According to a Bob Gilbreath, chief marketing strategist at Bridge Worldwide, in a speech in 2010:

71% of consumers are giving as much or more now as they were before the economic downturn.
87% of consumers brooks orange jersey would switch brands based on association with a good cause.
50% of consumers would pay more for products from brands that support causes.

Companies might look to engage in a cause marketing campaign to attract consumers and to encourage the customers to spend more money on their products.? But, that is only half the story.

The nonprofit organization, as well as the individual, is actually harmed by the cause marketing relationship.? Let's look at the nonprofit first.? In a scientific study entitled "Can Supporting a Cause Decrease Donations and Happiness?" "The Cause Marketing Paradox" by Aradhna Krishna, the Dwight F. Benton Professor of Marketing at the Ross School of Business at the University of Michigan, she concludes that "cause marketing, whereby firms link products with a cause share proceeds with it, reduces charitable giving by consumers, even when it is costless to the consumer to buy on CM (versus not); further, brooks orange jersey instead of increasing total contribution to the cause, it can decrease it."? A consumer is likely to believe that when they purchase a Cause Marketing product they are fulfilling their charitable quota and are therefore less likely to make future donations.? The more that the individual spends on a cause marketing item the less they will donate to a nonprofit in the future.