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December 9, 2004 -- Agencyfinder study reveals correctable flaws in non-profits' RFP process.
Richmond, VA - When it comes to finding the right ad agency or PR firm, a recent survey shows that non-profits and foundations that use the traditional RFP as their first step in the agency search may want to re-think that process. Agencyfinder.com, the largest online agency search and evaluation service in the advertising and PR industry, cited findings of a recent survey of over 4,000 firms registered with the service that reveal some problems inherent in the way non-profit organizations and foundations secure the services of marketing professionals. "The results of the study show the traditional method of sending out a Request for Proposal (RFP) to a laundry list of agencies is no longer viable or efficient and could, potentially, do a worthy cause more harm than good," according to Chuck Meyst, Chairman and CEO of Richmond, VA-based Agencyfinder.
Agencyfinder found that nearly two out of three agencies considered the RFP to be a waste of time and effort. "Sixty-three percent of the agency principals who responded to our survey said they thought most non-profits and foundations had already decided who would be awarded their business before they even sent out their RFP," says Mr. Meyst. And while he conceded that many of the responses probably reflected small non-profits
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rather than the more accomplished and experienced industry giants, Mr. Meyst pointed out that this belief "still results in agencies moving the RFP farther down on their priority list or maybe not even participating in the account review."
According to Mr. Meyst, this could mean agencies that could possibly be a great match for a non-profit - and in some cases willing to donate their time on a pro-bono basis - pass on the opportunity instead, leaving the charity as the big loser. Reported one respondent to the Agencyfinder survey, "We generally will not answer an RFP (from a foundation or non-profit) since I feel we do not need to compete for free work,"
Agencies report the real problem lies in the traditional concept of what a 'Request for Proposal' is in the first place. Experience has shown that many smaller non-profits and foundations ask members or volunteers with limited marketing and advertising experience to draft the RFP. As a result, it's not unusual for the RFP to be developed without help from a professional search or marketing consultant.
That practice appears to be part of the problem for most of the invited service providers. Nearly all of the agencies participating in the study reported receiving RFP's from non-profits or foundations
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