How NOT to Recognize Not-for-Profit Excellence, @PRNews Edition



PRNews charging nonprofits for awards

PR News is a pretty big deal. They’re much more than just a magazine for PR practitioners. They offer webinars, books, conferences, job boards — the full slate of services.

And one other thing they offer? Awards. Lots and lots of awards.

Awards are cool. Getting one makes you feel good about your work, or even yourself. But it seems to this punk that there’s something icky about a company taking in tens of thousands of dollars to judge the work of not-for-profit organizations.

When I heard about the awards, it was a little disconcerting to think that nonprofits would pay $299 for the first entry and $199 for subsequent entries. With more than 400 entries last year, that meant that PR News was taking in somewhere between $80-$120,000.

That seemed a bit much. Then I looked at their awards luncheons.

For example, their luncheon on November 29-30, at the same venue as the Nonprofit PR Awards, is going to cost someone $475 to attend! And you don’t get a discount even if you buy a table of 10: you’d pay the full $4,750. If 100 people go to the luncheon, that’s nearly $500,000!

Where the Punk Does All That Moolah Go?

I contacted PR News about their awards, with a number of questions:

  • The number of entries in previous years
  • The nature of the event celebrating the winners
  • How are the fees set for entries to this award program and the revenue spent?
  • Why would PR News not offer lower entry fees to not-for-profits compared to its other awards programs?
  • Does this award program have the goal of making money for PR News or its parent company?
  •  Are you at all concerned about the following issues:
    a) that with the cost of entries, worthwhile programs at not-for-profits are missed because they choose to spend their money elsewhere
    b) that the awards then become biased toward large, well-funded NFPs and the agencies that serve them
  •  Do you have a discount program for organizations which simply could not afford to enter this competition?
  •  How would you compare your awards to other awards such as the Gold Quill or Silver Anvil awards, which are comparable in fees, but are administered by not-for-profit organizations themselves and may use fees to subsidize the cost of operating the associations?

Fair Questions, Yes? Ummm…

I didn’t get a great deal of detail in response.

“Thanks for your interest in writing about the Nonprofit PR Awards. We receive roughly 400 entries every year and have an event at The National Press Club in Washington DC to honor the finalists. At PR News, we are advocates of the power of nonprofit public relations.

“It’s an area of the PR discipline that often goes unrecognized, so we launched the awards program many years ago to benchmark excellence among communicators in the nonprofit arena. We honor both nonprofits and the agency partners that help move the needle for the nonprofits…

In order to properly administer the program and offer industry benchmarking, we do charge an entry fee. We receive entries from all sizes and budgets and take great pride in the platform we provide to nonprofits worldwide.

“We do not disclose financial information. Thank you for your interest,” wrote Diane Schwartz, the SVP & Group Publisher of Access Information’s Media/PR Group, the parent company of PR News. 

While entries may come from organization of all sizes and budgets, it certainly looks as if the awards are dominated by large PR agencies and very large nonprofits. In 2011, for example the first 10 winners listed are:

  • MWW Group
  • National Shooting Sports Federation
  • American Cancer Society
  • American Airlines
  • Howard Brown Health Centre & Public Communications Inc.
  • ONE
  • Western Connecticut Health Care
  • United Nations Foundation
  • Seattle Children’s Hospital Foundation
  • “4 GreenPs” The National Children’s Centre
  • Pentagon Force Protection Agency

It seems to me that these awards are taking lots of money that could be better spent on, say, doing the actual business of the not-for-profit.

What happens to that money when it gets to PR News? Only they know. And they aren’t saying.

I think that’s a shame. I also think that statements like this one, from Bawden & Lareau Public Relations, make a lot of sense:

You’re as good as your last work, not your last award. We just don’t enter any award competitions. It’s that simple. If a client has an award competition they would like to enter, we will assist them and prepare the material so it truthfully reflects the work that has been done and presents the work fairly, objectively and with the highest production values possible.

What about you – how do you feel about the approach PR News is taking? Let’s start the discussion.


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About the author: Bob LeDrew (2 Posts)

Bob LeDrew is a PR consultant in Ottawa with more hats than heads -- PR guy for everyone from government departments to singer-songwriters, social media consultant, blogger, podcaster, house-concertizer, and all-round snarker. Find more about him at Translucid.ca, The King Cast or Bobcat House Concerts.


13 comments
mickeygomez
mickeygomez like.author.displayName like.author.displayName like.author.displayName 3 Like

I think that application fees for awards are acceptable within reason. I'd prefer to see fees based on budgets, though, if the award is truly meant to be open to nonprofits of all sizes.  I'd also like to see tickets to the award event included in the prize. And finally, it would be nice to see a monetary donation made to the top three winners.  The way this appears to be set up, there are few benefits outside of bragging rights and it's only open to large nonprofits with large budgets.  It feels much more like a revenue stream than a legitimate opportunity to recognize exceptional achievement.  Thanks, Bob, for an insightful post. 

halffiction
halffiction

@mickeygomez That's a great idea. While these numbers seem high, I agree that awards fees are acceptable within reason. I tried and failed miserably at starting an ad awards show for killed ideas - I charged a very low fee and did not realize how much the administrative burden of cataloging all the entries, getting them to judges, etc. was. In the end I had to give up because there was no way to get all the work done for the amount collected.

Dan Hutson
Dan Hutson like.author.displayName 1 Like

@mickeygomez Great idea, Mickey. A donation to help winners continue their work is a nice twist and would set such a competition apart from the rest.

Dan Hutson
Dan Hutson like.author.displayName 1 Like

Guess I'm a wee bit jaded on this. I can't remember a time when I didn't have to pay an entry fee for this competition or that competition, and I've worked in nonprofits for a long time. And while I certainly sympathize with those who choose not to compete, it can be an effective business development tool for those who do work for nonprofits. Many prospective clients see awards as outside/expert affirmation of their brilliant decision to hire you.

bobledrew
bobledrew like.author.displayName 1 Like

@Dan Hutson I'm not arguing for no entry fees. I'm asking why an awards program targeted specifically to not-for-profits has exactly the same entry fee as a for-profit program, especially when nearly half the NFPs in the US have less than $100K in annual revenue. Even if you use the $199 entry fee, 400 entries is $80K in PR News's pocket. How much is it costing them to administer the awards? And while I could see an agency saying "Hey, we won a 2012 award for our nonprofit work, hire us", is that the best use to which a program like this can be put? 

Dan Hutson
Dan Hutson like.author.displayName 1 Like

@bobledrew No argument, Bob. Unfortunately, these awards programs tend to be seen as an ancillary revenue stream by the organizations that stage them (and in some instances, the only reason for that organization's existence).

As to what's the best use a program like this can be put, I can think of many. The question is, what's PR News' objective?

DonnaPapacosta
DonnaPapacosta like.author.displayName 1 Like

Good questions, Bob! Personally, I find most awards programs to be a pretty big racket, which is why I prefer to DO work for my clients, and not spend time nominating my projects for awards.

bobledrew
bobledrew like.author.displayName 1 Like

@DonnaPapacosta I'm beginning / continuing to think that's a very solid strategy. 

Maybe there should be a sliding scale for awards program fees, starting VERY low and then adding a percentage of program budget from a given level -- say, $25 for programs with budgets from $0-10K, then 0.5% of budget up to $50K budget, then a max. Or something like that. So that the pockets of the entrant don't become the determining factor. 

Danny Brown
Danny Brown moderator

Hey there Bob,

It did strike me as "weird" when I saw that particular award, although I've always questioned the reasoning behind asking people to pay for something like an award - that's like paying your wife or husband for sex and then asking them to vote.

But for nonprofits especially, the guys that really need the exposure but often don't have the funds in place to get that, this is particularly galling. I guess the fact you found it's primarily the bigger agency and organization names that came out as previous winners says it all...

bobledrew
bobledrew like.author.displayName 1 Like

@Danny Brown One thing I didn't put in the post: In 2010, there were nearly 1.6 million not for profits in the US alone, and nearly half of those had annual revenues under $100K. If you put five entries into this competition, that's $1,095. If you happen to be in Washington and you and a colleage go to the luncheon that's $2,045. If revenue is $100K, that's more than two per cent of your annual revenues gone on entries and a lunch. 

JennHagen
JennHagen like.author.displayName 1 Like

@bobledrew  Not to mention that many of those smaller NFPs wouldn't have the funds to hire the PR firms, let alone apply for the awards. They have to rely on in-house talent. (I don't mean this as a slight towards PR firms - it's just a reality.)

In the bumph about the awards it states that because of the economic climate, NFPs have been forced to become more creative with less (is the implication). While this is true, not sure that creativity includes big ticket admission to awards programs/luncheons/travel to awards etc. Maybe it shows creativity on the part of the PR agencies during an economic downturn?!

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