By: Gavin Rarey Alex Oswald Tanner Schwien Joe Howard Eric Stivers Azaivier Davis

Table of Contents 1. Executive Summary 2. Company Description 3. Strategic Focus and Plan 4. Situation Analysis 5. Product Market Focus 6. Marketing Program 7. Financial Data and Projections 8. Implementation Plan 9. Evaluation and Control 10. Works Cited / Appendices 1 3 3 4 11 14 20 21 22 23

1. Executive Summary American Cancer Society (ACS) of Northern Arizona is a small chapter of a larger organization, American Cancer Society National. ACS of Northern Arizona is located in Flagstaff with a small number of employees serving neighboring cities such as Kingman, Williams, and Havasu. Currently the chapter hosts three events; Diamonds or Denim, Relay for Life and Climb to Conquer Cancer all over Northern Arizona. From events, the National ACS organization divides proceeds to research, treatment, education, prevention, detection, further fundraising, salaries, and support. Their primary goal as an organization as a whole is to work hard to increase funds to promote research and prevent and/or cure cancer, as well as raise funds for support to those who have, or had cancer. The situation they are put in is the need to further raise funds, and capture more of the market share of donations made per year by repositioning themselves in a way they are in their target markets evoked set when deciding to donate to a nonprofit organization (NPO), and create a differentiated marketing strategy. Currently, ACS strictly relies on donations for their expenses, which is one of the biggest strengths they have. ACS has not captured how their target market (25+ year olds with families) prefers to be reached, and how they prefer to donate, which seems to be word of mouth and small, frequent donations. With only three events spaced so far apart, ACS has created a weakness for themselves by not increasing the customers ability to donate frequently, as they please. ACS has an opportunity to recapture those lost donations in between their current events by increasing the number of seasonal events. The biggest threat they face is the economy changing the amount, and frequency individuals prefer to donate. This makes the competition in the NPO industry abundant, and highly difficult to compete for event awareness. Recognizing the opportunity to extend their product line must be realized. In the Northern Arizona area, 41% of

employers do not participate in any non-profit organization events or donations. By partnering with local businesses, ACS can not only get them to donate promotional materials, but be directly involved in reaching their target market. The plan of action includes two additional events for ACS, including a Date Night and an adoption of the Art Walk of Flagstaff in neighboring cities to increase donations. Date Night, based in March will be based off of proceeds of sales from local theatres and restaurants of that city. One night a percentage of food sales will be directly donated to ACS as well as a percentage of movie ticket sales. The Art Walk event will be held in Flagstaff and at similar local events in the region. Artists will be given the offer to present their art for sale at the event if they agree to donate a percentage of the proceeds to ACS. If artists agree they will be given the opportunity to have their artwork presented online on their website, and Facebook page. By offering this opportunity it entices more artists to opt to participate in the event increasing revenue and therefore contributions. Both events proceeds and percentages will be negotiated with what the artist or business can afford. To promote such events, word of mouth and fliers will be utilized. Fliers will be created and distributed in each of the cities. The printing services will be strictly donated by local office supply and printing supply retailers to minimize costs. Businesses that participate will have their company and store logo printed on the flier as well, as an incentive for relatively cheap marketing and distribution. The events are designed and planned to decrease the time between events and maintain an event for every season and increase frequency of donations and not cannibalize donations from preexisting events. The marketing plan will be implemented in the beginning of 2013 with all five of the events. To establish the success of the marketing program there must be positive revenue, and revenue higher than what was generated in 2012. If the additional programs bring in incremental revenue, the plan will be deemed successful.

2. Company Description The American Cancer Society, Inc., is a 501(c)(3) nonprofit corporation governed by a board of directors that sets policy, develops and approves an enterprise-wide strategic plan and related resource allocation, and is responsible for the performance of the organization as a whole, with the advice and support of regionally based volunteer boards. American Cancer Society relies in the support of more than three million volunteers nationwide. These volunteers consist of leaders who set strategies and policies to community members, patient support, and education programs. ACS has around 900 offices nationwide, and a presence in more than 5,100 communities. American Cancer Societys branch in Flagstaff AZ is relatively small compared to other branches across the country which consists of 6 employees. Being located in a smaller town allows obtainable relationships with more people, but it also is easier to overlook groups that the office does not know about. 3. Strategic Focus and Plan Mission The American Cancer Society is a nationwide, and community-based voluntary health organization committed to eliminating cancer as a health problem by preventing cancer, saving lives, and withdrawing the suffering from cancer, through education, advocacy, and services. ACS will provide people and patients with the information and knowledge to take steps in the right direction every day to stay well. ACS has the resources, information, and support people need to stay motivated to eat healthy, remain physically active, quit smoking or aid another loved one to quit, and understand what type of cancer screenings are necessary. ACS provides many support programs online and in an area near you such as Road to Recovery, and Hope Lodging. Climb to Conquer Cancer is a unique activity held by the American Cancer Society in our

western states. It is a unique event that offers everyone in a community the opportunity to participate in the fight against cancer. Goals The American Cancer Society set ambitious goals for significantly decreasing the rates of cancer occurrences and mortality in conjunction with considerably improving the quality of life for everyone who has or had cancer. The funding of external research projects is possible through grants and scholarships along with conducting their own research into cancer epidemiology, surveillance, and health policy. By providing researchers with cutting-edge technology, it helps the organization understand cancers causes, determine how to best prevent, and new effective ways to cure cancer. Core Competency and Sustainable Competitive Advantage American Cancer Society events are inspiring, uplifting, and great at bringing the fight against cancer directly into your community( Facts about acs, 2012). ACS hosts several inspiring fundraising events throughout the year such as The Climb for Cancer, which raises funds and awareness to help fight cancer. The competitive advantage that the ACS office has is that cancer affects almost everyone and none of the other cancer organizations have a local office and local events. 4. Situation Analysis American Cancer Society of Northern Arizona is a rather small organization compared to its parent foundation of ACS National. The organization serves communities of not just Flagstaff but also of Kingman, Havasu, Williams and many others. The organization currently has 6 employees in its office located in Flagstaff. The chapter currently promotes three main events to entice contributions from the communities including: Climb to Conquer Cancer

(Flagstaff), Relay for Life (all Northern Arizona) and Denim or Diamonds (Flagstaff). They must develop a plan of action, and marketing plan with their strengths and opportunities to minimize their threats and weaknesses, recapture the market share of donations per year of Northern Arizona and position themselves in individuals evoked set when deciding to donate to NPOs. SWOT Analysis The tables below, depicts the organizations strengths, weaknesses, opportunities and threats that exist for American Cancer Society. The organization competes in the non-profit sector industry as well as the cancer relief market of non-profit organizations. Their biggest strength is their expenses remain relatively low, relying on donations to make up the expenses they incur, yet have not recruited a large number of businesses within the Flagstaff area to get involved. They have the opportunity to capture more donations if they have more events because communities tend to prefer to donate more frequently at smaller amounts, but face competition of other NPOs in the industry fighting for the donations and due to less donations from the decline in the economy competition for the same level of donations or more has stiffened and innovation must be present to stand out from its competition. The following tables will depict the companies SWOT, broken down into several different categories. These categories exemplify some function of either internal factors, which the company currently possesses or external factors, which are not company specific, but held over the entire industry. Each of these two fields, and the underlying categories will be examined based on their strengths and weaknesses, or opportunities and threats to help determine the current standing and outlook of the Northern Arizona division of ACS.

1. Internal Factors Management

Strengths Having minimal full time employees decreases miscommunication or lack of communication, and more direct control Proceeds from fundraising events are given to not one type of cancer and are divided amongst, research, treatment, further fundraising, etc. Marketing is done by third parties based off of donations, which decreases the variable expenses per event, and strongly relies on word of mouth (most common form of donation Because ACS relies on volunteers to work the fundraising events they currently have there is minimal wages payable (employees of the local office)

Offerings

Weaknesses Having a few number of employees decreases the amount of collaboration of ideas, keeping the company static as opposed to evolving Because their proceeds are divided amongst many categories and proportions decided by national council decreases visibility to donators decreasing probability of donations (Figure 12) Because 41% of Northern Arizona Businesses do not participate in non-profit events limits the amount of exposure, and reaching their target market. Relying on volunteers can have a mixed turn out to who says they will volunteer and who will actually be there causing a challenge of maintaining a steady work force.

Marketing

Personnel

Finance

Services

No past financial records ACS currently has a positive net exposed to the public negatively income, based off of only two impacts the position of the events and getting all expenses company, and difficult to covered by donations keeps a measure success and failure of majority of costs in fixed costs fundraising programs. With three events spaced so far Currently with three events, it is apart, the frequency of easier to notice the impact of donations is minimal, and a events, control factors at each minimal amount of exposure, event and focus on one at each which is the opposite of what time people prefer to donate (Figure 12)

Research

With no prior research of non profit target markets and donation trends, allows ACS to use an undifferentiated marketing strategy that decreases costs using only one strategy Opportunities Older market, willing to donate, large quantity of unapproached business opportunity, easily reached consumers, strong emotional ties to cancer in the area with large trends toward donating to passions Backed by National chain and finances, established name with established brand awareness Advances in research technology and treatment/testing can influence donation decisions, promoting awareness of current technological capabilities influences decisions Many Northern Arizona residents enjoy going out to locally hosted events and spending money, the Northern Arizona region has households with some disposable income which allows them to go to dinner and donate at sponsored events Allows promotion for business partnership events due to the capability of write-offs by the partnering company

Not knowing which demographic of people donate most frequently, and largest donations limits the amount of donations, and increases the amount of effort to reach the people of the target market. Threats Large number of potential consumers are college students, many residents only live in Northern Arizona part of the year, consumers prefer to know their money stays with local branches of NPOs Large number of local NPOs in Northern Arizona area Lack of room for innovations, no true potential for competitive advantage

External Factors Consumer/Social

Competitive

Technological

Economic

The current economic downturn has prevented growth or reduced donations overall, the economic outlook looks uncertain in the future

Legal/Regulatory

National nonprofit organizations are held under a spotlight and the malpractices of another branch can have an affect on the Northern Arizona branch, even with no true involvement

Industry Analysis Nonprofit Organizations in Northern Arizona Northern Arizona is comprised of several cities, specifically, the Flagstaff, Sedona, Paige, Williams, Bullhead, Lake Havasu, Kingman, and other surrounding cities. These cities are host to several competing NPOs and currently are faced with economic issues, which hold as a detriment to household donation totals (See Figure 5). However, even through the difficult economic times, in 2010 and 2011, such companies as Red Cross have found national operating revenues of$3.5 billion (Rhoa, B., 2012), Goodwill with $44 million (Financial statements for goodwill industries), and American Cancer Society nearing $1 Billion (2010/2011 Combined financial statements). These numbers can demonstrate the large supply of donators across the globe, and growth in the industry is apparent as well with large trends in society moving toward social responsibility. The Nonprofit Organizations of the world are closely monitored by several layers of the Federal Government; any layer of government has the right and authority to regulate any unethical or uncertain behavior behind a non-profit entity (Not for profit and charity law). These regulatory authorities even trickle down to states, cities, and town levels that deal with several of the tax, property, zoning, and ethical issues on a local basis. With these strict regulations, it is a very uncertain market that is susceptible to investigations and questions from outside entities. Industry Analysis - Competition The Nonprofit Organization in the Northern Arizona region, according to Flagstaff Central, is comprised of over 50 organizations (Flagstaff non profit-organizations and community services). For majority of these organizations, the target market is the same, or intersecting. With competition that large, it is difficult for one organization to gain a competitive advantage over the others. For American Cancer Society, it is able to back itself with the 8

reputation, awareness, and funding of a national organization. This benefit gives American Cancer Society an advantage when compared to several of the local orchestras, clubs, and locally formed organizations. ACS in the Northern Arizona region also faces other national NPOs in Goodwill, Red Cross, and other well-established brands. These competitors often have different forms of functions, such as second-hand stores and walk-in brick-and-mortar locations. In comparison to these two different types of NPOs, ACS establishes themselves as more recognizable than local competitors, and is among the evoked set of NPOs, based on research done of the area (See Figure 11). Being part of the evoked set gives ACS an advantage over other national NPOs that do not come to mind as the first five evoked brands when looking to donate. Company Analysis Although NPOs are treated differently in respect to a manufacturing or service company, each NPO must fight for the donations that the general public makes per year. One of the largest factors that affect the levels of donations from the public to any NPO, is where their contribution is going. ACS has a low visibility of internal cash disbursements, which if made more public can increase brand image. The organization with a relatively low level of expenses can make great changes in their position with donators if they establish the right connections with businesses and the general public of Northern Arizona. Because they are an NPO that stands for a good cause they have an advantage over other businesses in getting their foot in the door with businesses of Northern Arizona and will have a better chance of establishing those lines of communication and donations.

Customer Analysis The customer analysis section of ACS describes (1) characteristics of where donations come from and (2) concerns of those who donate. Customer Characteristics The target market of ACS is all of Northern Arizona, cities and towns that it includes. From the primary quantitative research conducted the highest amounts of donations to NPOs is those who have a family and are above the age of 25 (See Figure 2). Those customers that have families enjoy activities that change through the seasons of the year (See Figure 10) that do not require a high level of involvement. Although (See Figure 6) research depicts that those who have been diagnosed with cancer tend to make more frequent donations per year, it is impossible and unethical to narrow the target market to those who have only been diagnosed with cancer. Concerns of Customers Customers primary concerns when choosing to donate to a NPO is determining where their donation is going and the visibility the organization has in the community. Customers do not want to get prompted more than by word of mouth and wish to donate by word of mouth. Individuals who choose to donate would prefer to make more frequent donations throughout the year at a smaller amount versus one larger donation once per year (See Figure 12). Most individuals believe that the their contribution goes to research (Figure 8) which ACS can take two standpoints on; show the actual amount that ACS Northern Arizona contributes to research or launch a campaign to position the organization as one that contributes to many different programs and fundraising.

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5. Product Market Focus Cancer is a disease that affects millions of people across America. The American Cancer Society realizes that over one million people get cancer in America every year. One in four people in the US either have cancer or know of someone who has some form of this potentially deadly disease. ACS is the most well known organization involved in the fight against cancer. Its goal is to use its popularity and charitable donations to only increase cancer awareness in hopes of one day finding a cure for the deadly disease. This plan a long with the research gathered is focused on the Northern Arizona region. The largest and most successful fund raising event held in Northern Arizona is the Climb to Conquer Cancer. Though this event has managed to generate a tremendous amount of revenue, along with the Denim for Diamonds and Relay for Life events, adding two more proceedings will be optimum for not only increasing brand/ cancer awareness, but generating an incredible amount of donations. The two other events that will be

implemented are the Movie/Date Night as well as the Art Walk in all Northern Arizona cities. Marketing and Product Objectives Initiating the seasonal events that have planned out (Movie/Date Night, Art Walk) will not only target the year-round residents of Flagstaff but the student population for volunteerism as well. The target market is Flagstaff residents ages 25 and older. This market entails a wide range for people; which mean various attitudes and lifestyles have to be accommodated for. These events are extremely popular among the residents of Flagstaff and will allow ACS to generate a tremendous amount of exposure for its brand and the fight against cancer. The Climb to conquer cancer is a very beneficial event in Northern Arizona; however it has to be an objective of ACS to expand their market even further in the spirit of their mission.

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Current Market The current market consists of the residents of Northern Arizona (Flagstaff, Sedona, Prescott etc.). From this market, come most of the donations and participants of the Climb to Conquer Cancer. This event is ACS primary venue for gathering donations in Northern Arizona. ACS was able to accumulate over $300,000 at the last event, which was a great success. However, they can expand their current market by adding more events (Movie/Date Night, Art Walk) in Northern Arizona throughout the year, which will increase their brand awareness/equity throughout the region. Based on the research gathered, there is a much larger segment that needs to be tapped into than what is being reached by the Climb to conquer, Denim for Diamonds and Relay for Life. New Market The Movie/Date Night and Art Walk will bring new gains to the regions of Northern Arizona. What is great about this market (25 and older) is it covers such a vast spread of different people and lifestyles, while simultaneously accounting for those who donate the most to non-profit organizations. Those who know of ACS and actively donate to the organization are very loyal and passionate about the cause. However, maintaining these donors while intensifying ACS mission to others is the ultimate goal of adding these two new events. Target Markets The primary target market for ACS is Northern Arizona residents ages 25 and older. Based on the research gathered, we found that people the age of 25 and older donate the most while donating the most frequently (see Figure 2). Also, this specific demographic fit perfectly with the opportunity to expand with the new events we mentioned before. Our research tells us

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that those people of this target market have the money or ability to donate to ACS whether through financial donations or physical by volunteering. This target incorporates both men and women, whether single or married with a family, older or younger who can and will be exposed to the great cause for which this organization stands for.

Customer Value Proposition

ACS provides a way for people to take part in the fight against cancer. Donations, both large and small help with generating the revenue to fund the research needed to find a cure for cancer. Donations are only one way for people to contribute; you can also volunteer. ACS provides plenty of opportunities for people to give their efforts in the fight against cancer. The various events that ACS puts together across the nation, thousands of people volunteer to help organize and run the different events and activities that help raise money for the cause. Movie/Date Night This event will allow people to donate to a wonderful cause while enjoying a wonderful night out. Our qualitative research suggests that those in our target market frequently go to the movies and also enjoy eating out. These are activities that everyone can relate to and/or have participated in at some point in their lives. Art Walk Flagstaff has held this event for years and is seen by most residents as a Flagstaff tradition. The event is outdoor, fun and the classy setting gives people the opportunity to enjoy a nice evening in downtown while admiring beautiful art. Again, this activity is highly relatable with our target market. Its great for friends and family who appreciate art, good company and even some wine tasting.

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Points of Difference ACS does an excellent job in separating itself from is competitors. It is the largest voluntary health organization in America. With 12 divisions throughout the US and Puerto Rico, they have established a presence in more than 5,100 communities with 900 local offices nationwide. They not only focus on curing cancer but other concepts such as; Cancer prevention Cancer treatment Life after cancer help Cancer screening

ACS does not explore just once particular cancer like most organizations, but many. The wide range of cancers they are involved with consists of breast, prostate, colon, lung and more. With the amount of donations ACS has been able to generate, they have been able to fund some of the most innovative scientists in the in the world. They have the ability to raise money, provide cancer support and spread awareness better than any other organization, and they have been doing it for quite some time. (Facts about acs, 2012). 6. Marketing Program With a wide demographic of individuals in our target market of 25 year olds and older (See Figure 2) there will be two additional events that will be added in the timeline with the Climb to Conquer Cancer, Denim and Diamonds and Relay for Life.

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Event Strategy: Denim and Diamonds occurs in January, Relay for life occurs usually around June through various organizations of Northern Arizona and the Climb to Conquer Cancer occurs in August. The time span between the events is almost half a year between the two summer events and the one winter event. The research depicts those who donate to non-profits tend to prefer to donate in smaller contributions more frequently than in one sum at one given time. By increasing the number of events as opposed to changing the dates of the existing events there can be a recapture of the donations that are potentially lost. The two events that the organization will put on throughout the year include a movie/date night and the Art Walk. Movie/Date Night From the qualitative research we see there is a trend between what people enjoy to do, spending habits and time spent depending on the time of the year. The Movie/Date Night will occur in all cities, which have a local theatre or neighboring city theatre. The event will be based off the concept of percentage of total ticket item. ACS chapters will assign representatives to approach local businesses to speak with the managers. The restaurants that choose to participate will agree to one time frame of a particular day in which a percentage of the total ticket of the meal (excluding alcohol) will be donated to the American Cancer Societys local chapter and Northern Arizona ACS. The chapter president will be responsible for approaching local theatres and asking for participation, in which the theatre can choose or elect to give a percentage of a certain movie event or premier, time frame, or concessions, on the same coinciding day as the restaurants of that city.

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Art Walk Flagstaff has the standing ritual of the first Friday of each month there is an existing event known as the Art Walk, which can be adapted to all cities of Northern Arizona. At this event local artists are given the opportunity to showcase their art to participants of the Art Walk and have the chance to sell their art at a price that they determine. This event is accompanied by food and wine tasting of local restaurants and bars. The Art Walk event will prompt artists and businesses to make donation from the proceeds of the art. This donation will be a percentage of the selling price of the art. The art prices can range from anywhere between $5 and a couple hundred dollars. If the artists agree they will be given the opportunity to have their art displayed on American Cancer Societys Facebook page for the web to see their art. By doing this the artists obtains a larger audience than that of Flagstaff for their art, and a following donation with little investment or effort. Price Strategy Movie/Date Night Because the volunteers of the organization must approach another restaurant the cost to ACS is minimal, with that being said there must be a negotiation with the business owners of what percentage of the ticket is obtainable and realistic. The ACS will start negotiations with each of the businesses at 15% of the entire food ticket. Prices of food of business will be realistically the same from the time they were approached to the time of the actual event. The movie theatres of the cities who decide to participate in the event have one of two options available to them. Theatres can either opt to donate a dollar to every ticket sale or a percentage of total sales from concessions and ticket sales from the entire day or for a particular movie premier or time frame of that day for all movies. For the theatres price negotiations, percentage 16

will start at 10%, for concessions and ticket sales, or dollar per ticket. Movie prices do not vary greatly in Northern Arizona theatre to theater and for financial purposes will remain constant. Art Walk The Art Walks revenues will come from a percentage of what the artists lists his/her painting or other form of artwork at. The businesses of downtown Flagstaff dictate what art work is presented in their stores and have a majority of the power of what artists will be present that month. It is very important to negotiate percentages of revenue with both the business and the artist individually. The business may elect that if the percentage is too high to begin with they will not have artists wish to participate in the Art Walk. Pricing percentage negotiations will begin at 10% of the ticket price. If the event becomes successful there is always room for later negotiations, increases or decreases. Promotion Strategy As survey suggests, the largest group of people who donate to NPOs are first prompted through word of mouth and usually donate the first time they are prompted. Our promotion of the two events will rely heavily on the recruitment of volunteers and businesses to spread the word of the upcoming events. From the research conducted it can be said that 41% of businesses of Northern Arizona do not participate or contribute to non-profit organizations. By encouraging businesses to join with the ACS for one or all of the events the business can benefit by increasing positive feelings toward their brand image as well as gaining further advertising. By approaching business to participate or make a contribution toward their efforts this will keep costs down in ACS attempting to gather funds from previous events to fund further events. To increase word of mouth inside other businesses and consumers of their business we must first initiate an increase in talking about such events. 17

ACS will partner with one of the many printing companies of Northern Arizona to print and hang a flier of the event, on the day of the preceding event. By placing the promotion on the day of the prior event, we avoid cannibalization of the event that ACS is currently putting on. The Date Night advertisements will be run at the end of January after the Denim and Diamonds event and printed on quarter sheets of paper. By making the fliers smaller, it is easily taken with someone in a pocket or coat, and drives costs down producing four fliers per piece of paper versus one. For each business that agrees to have their fliers in their business for employees, customers, or both, there will be a minimum of 200 per business. With fifty sheets printed the total cost per business is $5 per participating business. By having so many fliers printed and placed three months in advance there can be an increase in market voice, without the extra expenses a non-profit cannot afford. If there are five local businesses that agree to have the fliers in their business the total cost of a donation from a printing service is less than $25. In exchange for the printing services cooperation they will be given the opportunity to have their company name placed on the flier, which ads as an extra incentive with ACS distributing such fliers with their company name on the flier. The amount of exposure the printing company will receive in exchange for a small investment can increase their awareness exponentially, as will as for ACS. Because there is already an existing relationship with Northern Arizona University and other organizations in Northern Arizona, ACS has a recruitment bank that can serve for distribution of the fliers and raise awareness of the event. NAU Exercise Science club is responsible for putting on the Relay for Life event in Flagstaff and with their help and connections in the university, the jobs they may have, extra curricular activities they have contacts with businesses that will be willing to distribute such fliers and also be willing to participate in such events. In neighboring cities where there are other concurrent Relays for Life

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there is a network of other businesses, participants and volunteers that can serve to distribute the fliers and businesses that can see an advertising opportunity for themselves. Distribution Strategy Because the plan for ACS is focused on all of Northern Arizona, it is not only geographics that play a role but time lapse. Geography plays a role in the idea that the Art Walk will require more from those outside of Flagstaff to drive to for an evening on the town, which may require further persuasion. The Date Night can be done in any city in Northern Arizona that has a theatre, including but not limited to Sedona, Flagstaff and Prescott. The hardest challenge will be to avoid cannibalization of donations based on time lapse between events. Currently the events that ACS has are bi annually. With the research conducted though there are more donations that are available, with the fact that smaller more frequent donations are preferred. To counter balance the current events schedule of biannual and the possible cannibalization of donations of too many events, events will be coordinated quarterly to the season. January March June August October Denim or Diamonds Date Night Relay for Life Climb to Conquer Cancer Art Walk

By spreading the events out we avoid canalization and because the Date Night can run in multiple cities we avoid cannibalization of one theatres profits in respect to anothers.

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7. Financial Data and Projections American Cancer Society is currently operating with excess operating income by yearend. Under assumptions made in the following financial spreadsheets (Figure 15), the Northern Arizona chapter of ACS brings in net excess revenues of roughly $609,101.25 each year, majority of which is coming from fifteen various events held regionally (Assumed Statement of Activities). These events are bringing in, on average, $66,881,68 with a minimum of $8,359 and a max of $301,494 coming from the Flagstaff Climb. These events are usually host to roughly 664 people, with a minimum of 113, and a max attendance of 4224 participants coming from the Williams Relay for Life and the Flagstaff Climb respectively. With these numbers, there is an average conclusion of $100.75 coming from each individual at events (Figure 16) Earnings per Event/Participant). Using the averages from these events, it is possible to forecast projections of future income if ACS were to add two more events. Using averages, the projected income from these events should be as accurate as possible, as they will be carried out in all regions including Williams and Flagstaff. The projections provided in the Figure 15 spreadsheet list assumptions that there will be no revenue change from pre-existing events due to the porous economic standings deterring the operable growth in the area. As well as this assumption, the financials look to assume that most events carry 15% variable costs and the Northern Arizona ACS branch holds $160,000 of fixed costs per year. Using these assumptions and averages, the additions of two events would brings about a total of $133,763.36 more revenue, and $20,064,50 in costs. The implementation of these two events would cause a net increase of $113,698,85 per year in excess revenues and bring an increase in total assets for the regional branch of the company (Pro-Forma Statement of Activities).

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8. Implementation Plan Introducing two new events can be tasking, yet lucrative for the Northern Arizona branch of American Cancer Society. The events have strategically been place to allow for a minimum two months of planning and preparation. The first order of business will be creating appropriate event names to allow the title to express the sponsor or purpose of the event, then having volunteers or representatives reach out to local businesses for a joint venture relationship. Gaining the joint venture relationships are the most important part of each event, because the businesses or people that are supplying a good to a customer, are also going to be the vessel for donations to arrive to ACS. Two months of preparation time should allow enough time for even a minimal number of representatives to reach multiple cities in the area. Once there is a list of established, participating companies the advertising must take place through any informational median. Applicable informational medians would include, but are not limited to e-mail, phone, postage, word-of-mouth, and flyers. Fortunately, due to the nature of the industry, a uniform flier will be acceptable, as the region is not diverse enough to constitute multiple forms of promotions. As an important note, the research results showed that many people donated to multiple times per year, as well as many people donated to different organizations per year. This being said, it is important to begin the promotion for the next event at the preceding events launch date. Allowing people who we know are avid about donating to know when the next event will not only boost return/loyal donators, but it will enhance word-ofmouth promotion as well.

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9. Evaluation and Control Expected revenues for these events have been made under multiple assumptions. With assumptions taken into account, performance may be volatile between the two events as they are entirely new to the American Cancer Society fundraising tour. With the volatility, uncertainty of the economy and other deterring factors apparent for market donators, it is important to assess each event as it comes with adjustments made proportionally to changes in the traditionally held events performances. At the end of the first year it is important to reassess the contribution margin of each new event and look into successes and failures that could be improved on. After the first year and improvements and alterations have been made, the second year should be a more accurate measure of how lucrative the events may be, and how much they have helped the inflow of donations throughout their life and future with American Cancer Foundation.

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Bibliography
1. Windrum, J. (2012, November 18). Dying with mom part 1. Retrieved from http://www.wtflungcancer.com/wpcontent/uploads/2011/07/American_Cancer_Society_Logo2.j pg 2. Flagstaff non profit-organizations and community services. (2012, November 26). Retrieved from http://www.flagstaffcentral.com/Subjects/Organizations/organiza.htm 3. Rhoa, B. (2012, January). Fy10 financial results. Retrieved from http://www.redcross.org/about-us/publications/fy11-financials 4. Financial statements for goodwill industries. (n.d.). Retrieved from http://www.goodwillsp.org/about/financial-statements 5. Not for profit and charity law. (n.d.). Retrieved from http://www.lawnonprofit.org/faqnfpc6.htm 6. 2010/2011 Combined financial statements. (n.d.). Retrieved from http://www.cancer.org/aboutus/whoweare/financialinformation/combinedfinancialstatements/ind ex 7. 2009/2010 Combined financial statements. (n.d.). Retrieved from http://www.cancer.org/aboutus/whoweare/financialinformation/combinedfinancialstatements/ind ex 8. Facts about acs. (2012). Retrieved from http://www.cancer.org/aboutus/whoweare/acs-factsheet

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APPENDIX
Figure 1. Primary Quantitative Data 1. Gender

Male
2. Age

Female 25-35 1-2 35-50 3-4 50-60 5-6 60+ Over 6

18-25
3. 4. 5. 6.

How many times per year do you donate to a non-profit organization(s)? Do you make your donation based on emotional involvement? No How many times per year do you get prompted to make a donation?

0 Yes

0-2 3-5 6-8 Over 9

Would you be more or less willing to donate if you knew where your contribution went?

More willing More Likely Yes

9. 10.

Less willing Less Likely

Not applicable

7. Would you be more or less likely to donate to a non-profit if they were present in an event you attended or were interested in? (Sporting events) 8. Do you feel compelled to donate to a non-profit organization when you see the people who benefit from the organization?

No

Have or do you know anyone diagnosed with cancer? No Have you ever been diagnosed with cancer?

Yes Yes Yes

12. 13.

No No

11. Have you ever donated to the American Cancer society by either financial donation or volunteerism? Does your employer participate in events or donations with non-profit organizations? No Do you make donations at a certain time of the year?

Yes Yes

No Fixed Donation 2nd 3rd 4th

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14. Are you more compelled to donate when you choose the amount or when it is a fixed donation amount?

Chosen Amount Never 1st

15. When donating to a non-profit, do you think of American Cancer Society

16. When donating to a non-profit, is American Cancer society your:

1st choice Second

Third Fourth Never 17. Where do you think the majority of donations go to from American Cancer Society? (Mark all that apply)

Research Further fundraising More Increase Less Decrease

Treatment No Effect No change

Salaries

18. If you were at a charitable event, would you be more or less willing to donate? (Dinner date nights) 19. How has the current economy affected your level of charitable donations? 20. Would you rather make 1 large donation, or multiple small donations throughout the year?

1 Large Donation Multiple smaller donations

21. What is your preferred method of donating?

Online 0-1

Mail

Event

Telephone

22. How many different non-profit organizations do you donate to per year? 2-3 4-5 6+ 23. What is the first form of contact you have with a non-profit organization to prompt you to donate?

T.V.

Radio

Print media / Mail Word of mouth

24. What keeps you from donating to a non-profit organization ( mark all that apply)?

Lack of Knowledge Financial Restraints Poor Charitable Reputation Time

Restraints 25. How many months per year do you reside in Northern Arizona?

0-3

4-6

7-9

9+

26. After donating to a non-profit organization I would like to receive news and updates

Annually Bi-Annually Quarterly Monthly Never

27. Have you ever donated to Susan G. Komen? If yes how much per occasion?

$10-20 $20-40 $40-60 $60+ Not Applicable

28. Have you ever donated to the American cancer society? If yes how much per occasion?

$10-20 $20-40 $40-60 $60+ Not Applicable

29. How important is donating to non-profit organizations to you?

Not Important Somewhat Important Important Very Important Extremely Important

30. How important is it to you that donations made to non-profit organizations stay local?

Not Important Somewhat Important Important Very Important Extremely Important

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Figure 2. Donations by Age

Between Groups Q2Age Within Groups Total Between Groups Q1Gender Within Groups Total ANOVA Sum of Squares df 44.769 126.026 170.795 1.098 19.577 20.675 4 78 82 4 78 82 Mean Square 11.192 1.616 .274 .251 1.093 .366 F 6.927 Sig. .000

Age Donation Level 1: 18-25 1: 10-20 2: 25-35 2: 20-40 3:35-50 3: 40-60 4:50-60 4: 60+ 5:60+ 5: N/A With this sample of the age and how much is donated to American Cancer Society we were able to determine a relation between age and the level of donation to ACS are positively correlated. This data can be better correlated to who to market our targeting efforts to.

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Figure 3. Number of NPOs based on priority of donating

ANOVA Q22HowManyNPOdoYouDonateToPerYear Sum of Squares Between Groups 15.400 Within Groups 49.039 Total 64.439 df 4 77 81 Mean Square 3.850 .637 F 6.045 Sig. .000

How many different nonprofits are donated to How important 1: 0-1 1: Not important 2: 2-3 2: Somewhat important 3: 4-5 3: Important 4: 6+ 4: Very important 5: Extremely important The comparison of the two means emphasized that those who hold donating to non profits as a high importance in their priorities are more likely to donate to many different NPOs.

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Figure 4. Contact relationship with method of donation

ANOVA Q21PreferredMethodOfDonating Sum of Squares Between Groups 5.980 Within Groups 58.433 Total 64.414 df 3 83 86 Mean Square 1.993 .704 F 2.832 Sig. .043

Preferred method of donating First contact 1: Online 1: TV 2: Mail 2: Radio 3: Event 3: Print media 4: Telephone 4: Word of mouth The relation of means of first contact and preferred method of donating shows that the first contact with the individual is the most important to relation of how they prefer to donate. For example if someone is prompted word of mouth by the organization first to donate they would be more likely to donate that way in the future and at that current time.

Figure 5. Economys effect on donations to ACS

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ANOVA Q28HowMuchDoYouDonateToACS Sum of Squares Between Groups 25.268 Within Groups 191.330 Total 216.598 df 2 79 81 Mean Square 12.634 2.422 F 5.217 Sig. .007

Donation Level Economy Affect 1: 10-20 1: Increase 2: 20-40 2: Decrease 3: 40-60 3: No change 4: 60+ 5: N/A This comparison of donation levels to the ACS and that of the level of the economy has shown that the economy has had little to no effect on that of donation level. Those who donate and have donated to the ACS tend to keep donating no matter what condition the economy is in.

Figure 6. Frequency of donation compared to diagnosed with cancer

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ANOVA Q3HowManyTimesPerYearDoYouDonate Sum of Squares Between Groups 31.849 Within Groups 115.969 Total 147.818 df 1 86 87 Mean Square 31.849 1.348 F 23.619 Sig. .000

Number of times of donation Diagnosed with cancer 1: 0 1: Yes 2: 1-2 2: No 3: 3-4 4: 5-6 5: 6+ The research of the two variables has shown that the individuals who have been diagnosed with cancer are more likely to make more frequent donations then those who have not been diagnosed with cancer.

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Figure 7. Frequency tests of variables

Q12 Your Employer Participate With NPO Frequency Percent Valid Percent Yes No Total Missing Total System 46 32 78 77 155 29.7 20.6 50.3 49.7 100.0 59.0 41.0 100.0 Cumulative Percent 59.0 100.0

Valid

41% of participants of the survey do not have employers who participate with nonprofit organizations.
Q6Knew Where Your Contribution Went Frequency Percent Valid Percent More Less N/A Total Missing Total System 65 4 19 88 67 155 41.9 2.6 12.3 56.8 43.2 100.0 73.9 4.5 21.6 100.0 Cumulative Percent 73.9 78.4 100.0

Valid

73.9% of people are more likely to donate if they know where donations go. Figure 8. Where respondents believed donations went
Frequency Valid Missing Total 1 System 64 91 155 Research Percent 41.3 58.7 100.0 Valid Percent 100.0 Cumulative Percent 100.0

Further Fundraising Frequency Percent Valid Percent Valid Missing Total 1 System 25 130 155 16.1 83.9 100.0 Treatment Percent 23.2 76.8 100.0 Salaries Percent 16.8 83.2 100.0 100.0

Cumulative Percent 100.0

Frequency Valid Missing Total 1 System 36 119 155

Valid Percent 100.0

Cumulative Percent 100.0

Frequency Valid Missing Total 1 System 26 129 155

Valid Percent 100.0

Cumulative Percent 100.0

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Figure 9. Reasons why respondents did not donate

Lack of Knowledge Frequency Percent Valid Percent Valid Missing Total 1 System 41 114 155 26.5 73.5 100.0 100.0 Cumulative Percent 100.0

Financial Restraints Frequency Percent Valid Percent Valid Missing Total 1 System 52 103 155 33.5 66.5 100.0 100.0

Cumulative Percent 100.0

Poor Charitable Reputation Frequency Percent Valid Percent Valid Missing Total 1 System 32 123 155 20.6 79.4 100.0 100.0

Cumulative Percent 100.0

Frequency Valid Missing Total 1 System

Time Restraints Percent Valid Percent 12.3 87.7 100.0 100.0

19 136 155

Cumulative Percent 100.0

The primary reason that individuals do not donate to nonprofit organizations is primarily due to financial restraints, followed by lack of knowledge, and succeeded by poor charitable reputation. Figure 10. Qualitative research Guide: Id like to thank you all for coming tonight. We are going to host a focus group to determine feelings and trends about local events in Flagstaff. Were hoping to get some good information from this, so please talk as much as youd like about the question and bounce off each others statements and ideas. If you have any input, its important to us, so dont hold back. I will be your guide for the focus group and I will start us off with a question then let you guys lead the way. Any questions? Lets get started. 1. What types of events do you like to go to in Northern Arizona? -Events involving the outdoors - Events with social gatherings -Men seem to prefer events where alcohol is available -High preference of family events Group focusing on current season Guide: How about the rest of the year? What events do you prefer then? -Still strongly prefer outdoors -Family events seem to be the main focus 32

-Business hosted events come to mind 2. When dining out, what draws you to dine at one restaurant over another? -Atmosphere -Food Quality and Selection -Local restaurants Guide: Does your restaurant selection change based on who you go with? -Families tend to go to franchises (Chilies brought up a bit) -After-work parties go to places with bars, drink selection -Overall, not much difference in discussion 3. Who do you like to attend events with? -45 yr olds and older say family, younger say co-workers and friends -Occasionally older adults have couples night with friends Not much advancement of conversation 4. In your opinion, what characteristics make an event fun? -Who they are with, size of the event, sociable events -Unique events that are not normal opportunities for attendees -Performances are a popular topic 5. What is the single most important factor you consider before going to an event? -Costs that are entailed, time of the event. -Big differences in factors between the older and younger adults -Venue seems a mutual factor between ages -Weather conditions and time of year play major role 6. What is your favorite event to attend in Northern Arizona? Why? -Art walk (very popular) -Pride in the pines -Car show -CC Fair -Orpheum concerts 7. What is your favorite event you attend with your family in Northern Arizona? Why? - Flagstaff Extreme is a big hit with the older group with kids -CC Fair also very popular -Hiking mentioned a few times -Artwalk is the discussion of younger couples 8. What is your favorite event you attend with friends in Northern Arizona? Why? -Octoberfest -Concerts -Movie premieres 9. What are some events you attend during the week? -General consensus of little spare time to attend events during the week 10. What are some events you attend during the weekend? -Going out to eat -Family events -Childrens school concerts and sports events -Other events mentioned again such as artwalk, concerts, car show

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Guide: That concludes our focus group for the evening; Id like to thank all of you for attending. We were able to get good information from tonight and hope you drive home safe. Figure 11. Evoked Set
Q15WhenDonatingToNPOWhenDoYouThinkOfACS Frequency Percent Valid Percent Cumulative Percent 1 2 Valid 3 4 5 Total Missing Total System 34 15 16 10 13 88 67 155 21.9 9.7 10.3 6.5 8.4 56.8 43.2 100.0 38.6 17.0 18.2 11.4 14.8 100.0 38.6 55.7 73.9 85.2 100.0

This survey result shows where ACS ranked in the first four NPO that came to mind. 1 First Choice 2 Second Choice 3 Third Choice 4 Fourth Choice Figure 12. Preferred Frequency of Donations
Q20Prefer1DonationOrMultiple Frequency Percent Valid Percent Cumulative Percent 1 Valid 2 3 Total Missing Total System 16 69 1 86 69 155 10.3 44.5 .6 55.5 44.5 100.0 18.6 80.2 1.2 100.0 18.6 98.8 100.0

This survey result shows how customers feel about one large donation per year or multiple smaller donations per year. 1 One Large Donation 2 Multiple Smaller Donations 3 N/A

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Figure 13. ACS National statement of activities

35

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Figure 14. ACS National disbursements of cash inflows

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Figure 15. Assumed statement of activities of Northern Arizona ACS, and pro-forma income statement of activities

38

Figure 16. Earning per event/participant of Northern Arizona ACS

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