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Ccs Case

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Canadian Cancer Society: Fundraising Controversy
Richard Ivey School of Business, 2011

Introduction (Issues)

The Canadian Broadcasting Corporation (CBC) released a report online about the Canadian Cancer Society’s financial statements for the prior ten-year period. This article, published on July 6, 2011, was titled “Cancer Society spends more on fundraising than research” and focused on the fact that the amount of money of donation money increased each year whereas the proportion of money being spent on research decreased.
As a consequence, the Canadian Cancer Society (CCS) needs to implement a communication strategy to deal with this controversy. Indeed, a response has to be written and published in the media in order to restore CSS image and reassure its employees, volunteers and donors about its financial responsibility.
Analysis of Alternatives

The Canadian Cancer Society cannot decide to do nothing.
Indeed, it is essential for CCS to answer in the media so as to restore its image and reassure people who trust this organization (1,200 full time staff, 170,000 volunteers and donors).
What’s more, Canadians already feel unsure of what per cent of each dollar actually goes to a program, research or cause. It has been proved by reactions of Canadian people when a Toronto Star investigation revealed in 2002 that almost one in six Canadian charities was spending more money on running the organization than on the actual charitable work.
Thus, CCS should quickly communicate to donors in order to correct the calculation of its fundraising ratio and research percentage.
Indeed, reputation and trust are essential in an organization as CSS. They need to reassure their donors and correct the mistake that have been made.
Recommendations

The Chair of CSS should answer to the report of CBC in the media, by doing

interviews (TV shows, radio, newspaper). What’s more, the organization should communicate directly with the donors (phone call, message on their website, on social networks, mailing). They have to explain that they made a mistake while calculating fundraising ratio.
To finish, CSS should improve its visibility and transparency in order to keep its donors and regain their trust.

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