Why is Branding Important for Nonprofits?

When you hear the word “brand” what do you think of? Most likely you think of a large corporation like Amazon, Disney, Coca-Cola, or Apple. You may think of the Nike swoosh or the Target bulls-eye. Do you think of a nonprofit or charity organization? Probably not. But I’m here to tell you that brand is as important for nonprofits as it is for any successful company.

There are currently more than 1.5 million registered nonprofits in the United States. According to Forbes, over half of all nonprofits will fail or stall within a few years due to the lack of a strategic plan. A successful strategic plan starts with a fully baked and articulated brand. Your brand sets you apart from other nonprofits by illustrating your competitive edge. This edge can mean your organization receives more donor dollars. We all know that competition exists in the nonprofit sector. Donor dollars are not unlimited. Organizations with strong brands succeed in capturing more of them.

While we’re on the subject of breaking down myths, let’s discuss the most common and completely false assumptions about branding. A brand is more than a name, logo, or website. A brand is more than marketing, communications, public relations, or even fundraising. Your brand is a vital part of your strategic plan. Your brand is your reputation, the foundation from which your nonprofit is or could be successful.  

When you deploy a strategic brand strategy, your nonprofit becomes more than a cause. It becomes a living, breathing thing, capable of building meaningful relationships with donors, volunteers, employees, and the ever-changing community your organization serves. Your brand impacts your engagement with the world. 

Sounds kind of lofty and esoteric, doesn’t it? I’m here to tell you that it is completely possible. For example, TOMS started in 2006 as a simple 1 to 1 shoe donation to communities in poverty, but has since evolved into a grantmaker investing in mental health, ending gun violence, and increasing access to opportunity. Their supporters embraced the evolution and walked alongside the organization as it changed.  The brand remained strong.  

You may be sitting there thinking, “Nice story Mel, but I live in the real world. How is branding going to help my small nonprofit?” There are several benefits to developing a brand strategy and including it in your organization’s long-term strategic plan. Let’s look at each.

Credibility

By aligning your mission with your brand and acting accordingly, your organization will appear credible in the eyes of your constituents. When your programs reflect your purpose and you show efficacy, donors can be confident you will deploy resources effectively and with greater impact than other nonprofits. Clients will feel your services are rendered in their best interest, and employees will feel like they are making a difference by working for you. Your mission will be top-of-mind for prospective constituents looking for trustworthy partners because your organization’s brand is consistent with your actions. As Zig Zigler once said, “If people like you they will listen to you, but if they trust you, they’ll do business with you.” 

Relevance

Pip Emery, at Amnesty International, puts it this way: “If you don’t know where you’re going and why you’re relevant, you don’t have a brand.” A brand’s strength is determined by how relevant it is. Ask yourself, are we offering the best opportunities for donors and other constituents to live their values through a relationship with us? The answer to this question must, at a minimum, inspire them to support your mission and believe your nonprofit will deliver the impact they are expecting. Being relevant means creating value for your constituents through your mission. Causes come and go, as do nonprofits. How will your organization cut through the noise and stand out from the crowd?

Strong Leaders

Nonprofits need outstanding leaders and partners to succeed. I believe that strong brands attract employees with strong personal brands—those who are ready to work every day to advance the organizational mission because the same mission is embedded in their own DNA.  A shared mission gives the work meaning and the organization credibility. A strong brand leader attracts other talented employees looking to be a part of something bigger than themselves. A strong brand also attracts committed donors who believe deeply in your potential and want to help, as well as strategic partners to help tell the story and advance the cause.

Engagement

This might be the most critical of all brand benefits in terms of long-term strategic planning. When you offer programs and services that are valuable and needed in your community, you inspire engagement with your brand. Engagement happens when your organization presents a brand platform that resonates with a potential constituent. Engagement is important to stimulating action (donation, volunteer hours, etc.) in the short term and strong relationships (planned giving) in the long term. A strong brand breeds commitment.  

Ultimately, ROI

These benefits can lead to a positive return on investment (ROI). You can see ROI in more donations or other monetary gifts like grants, increased employee retention, or the reduced cost of acquiring a new donor or volunteer. ROI is also achieved by engaging in new community partnerships that strengthen or deepen your services. A strong brand builds deep ties with communities and constituents. The ROI on long-term engagement can keep your doors open for years.

Conclusion

Your brand is a complex mix of emotion, aspiration, mission, reputation, and stories. It is held in the hearts and minds of all those engaged with your organization. With a strong brand, your organization will be top-of-mind because you engage people in a way that makes them want to invest their time, talent, and treasure into your mission. It is critical to nurture your brand alongside your organization. The ROI can be significant. 

If you need help discovering and developing your nonprofit brand — or simply refining it — we’re here to help. Let’s discover it together! Contact us at [email protected].