By The Iridium Group
Increasingly, not-for-profit groups—from associations to small charitable foundations to established global organizations—are working aggressively and with greater focus and coordination to raise awareness and drive fundraising via traditional branding and marketing techniques.
A recent article in The New York Times cited the $36 million, three-year print and broadcast advertising campaign sponsored by the American Heart Association as evidence that nonprofit organizations are breaking new ground with their marketing and communications strategies. Driven by an increasingly competitive environment for fundraising, many nonprofits are working to shore up inadequate marketing plans and poorly planned branding and communications programs. This effort typically requires an initial capital investment that can be controversial. Decision-makers may be met with resentment or confusion from donors, members and other constituents who do not fully understand the value proposition. Nonprofit organizations have not traditionally applied investments toward overt, conventional advertising practices, but the market reality indicates a shift in view toward recognizing the benefits of these efforts.
“Nonprofits are dangerously behind their for-profit counterparts in the marketplace, and it’s all to the nonprofits’ disadvantage. And I would argue, other than any direct services the nonprofit may provide, that communications is more than half its job,” says Rick Schwartz, Vice President of Communications for the Rhode Island Foundation.
Studies strongly support that nonprofits are indeed spending more marketing dollars than ever before. In 2003, according to research conducted by Nielsen Monitor-Plus, spending on advertising by charities increased to $576.5 million from $497.7 million in 2002. Traditional print and broadcast advertising is not the only channel seeing growth. Organizations like The Jewish National Fund (JNF) based in New York City have invested heavily in websites and as a result, some have enjoyed steady double-digit or better increases in donations over the past three years. According to a recent article in the Non Profit Times, the JNF fundraising growth is due to the extensive information available on their website (as opposed to what fits in a conventional direct mail package) combined with an e-newsletter initiative that encourages program-targeted gift-giving and allows people to easily forward the solicitations along to friends and loved ones.
For non-profits with a controversial message, traditional advertising is often the only way to get the message out. Also, with the economy continuing its surge well into 2004, now is the time to set the stage for image building and introductions to new donors. There exists a lag effect between improvements in the economy, more consumer confidence and the sense of philanthropy that can be inspired in more prosperous times. It is beneficial for an organization to market it’s brand before the effects of an economic upswing trickles to potential donors, in order to be positioned effectively later on. Considering current trends and the new marketing demands on non-profits, this is a fertile time to begin sowing the seeds of effective communication, and to invest in the same value proposition that has driven corporate products and services for many years.
“Strong, effective branding is important for a nonprofit organization, just like it is for companies. New York City alone has over 15,000 nonprofits, so brand building and getting mindshare, among foundations and funders, the media, and the constituents whom the nonprofit serves, is absolutely critical for success.” says Fred Fields, New York Managing Director of the Taproot Foundation.
While the annual gala benefit, membership drives and strategic corporate partnerships have in the past propelled many fund-raising campaigns, the emerging view seeks a practical, focused and more traditional application of budget dollars. “Image may not be everything, but in a world saturated with the clutter of marketing messages, cogent communication is the key,” says Dennis Ahlgrim, who helped create the visual identity system for The Nature Conservancy. “Communications audits can help eliminate ineffective marketing tools and leverage other channels in a more effective way. The fundamental questions are, ‘Who is the audience—and there may be many audiences—what is the message to deliver and what is the most efficient channel through which to deliver it?’ Corporate marketing programs place an emphasis on building image through repeated messages that are mapped out in advance. It’s important not only that the visual presentation and messages be coordinated, but also that a realistic budget is attached to the plans,” says Ahlgrim.
“All of our nonprofit clients have approached their challenges with more or less the same theme,” says Lori Ende, who has developed many nonprofit brand identities and who has recently completed the design of an annual report for AmeriCares, a humanitarian aid organization. “There’s no question that we’re seeing a renewed commitment to image building and spending in order to achieve a differentiated, distinctive message and overall appeal. Brands for nonprofits are no different from corporate brands, really,” she continues. “The point is to create a unique presentation that effectively communicates the core messages and the brand of the organization with a maximum level of impact for the marketing dollars spent.”
Increasingly, not-for-profit groups—from associations to small charitable foundations to established global organizations—are working aggressively and with greater focus and coordination to raise awareness and drive fundraising via traditional branding and marketing techniques.
A recent article in The New York Times cited the $36 million, three-year print and broadcast advertising campaign sponsored by the American Heart Association as evidence that nonprofit organizations are breaking new ground with their marketing and communications strategies. Driven by an increasingly competitive environment for fundraising, many nonprofits are working to shore up inadequate marketing plans and poorly planned branding and communications programs. This effort typically requires an initial capital investment that can be controversial. Decision-makers may be met with resentment or confusion from donors, members and other constituents who do not fully understand the value proposition. Nonprofit organizations have not traditionally applied investments toward overt, conventional advertising practices, but the market reality indicates a shift in view toward recognizing the benefits of these efforts.
“Nonprofits are dangerously behind their for-profit counterparts in the marketplace, and it’s all to the nonprofits’ disadvantage. And I would argue, other than any direct services the nonprofit may provide, that communications is more than half its job,” says Rick Schwartz, Vice President of Communications for the Rhode Island Foundation.
Studies strongly support that nonprofits are indeed spending more marketing dollars than ever before. In 2003, according to research conducted by Nielsen Monitor-Plus, spending on advertising by charities increased to $576.5 million from $497.7 million in 2002. Traditional print and broadcast advertising is not the only channel seeing growth. Organizations like The Jewish National Fund (JNF) based in New York City have invested heavily in websites and as a result, some have enjoyed steady double-digit or better increases in donations over the past three years. According to a recent article in the Non Profit Times, the JNF fundraising growth is due to the extensive information available on their website (as opposed to what fits in a conventional direct mail package) combined with an e-newsletter initiative that encourages program-targeted gift-giving and allows people to easily forward the solicitations along to friends and loved ones.
For non-profits with a controversial message, traditional advertising is often the only way to get the message out. Also, with the economy continuing its surge well into 2004, now is the time to set the stage for image building and introductions to new donors. There exists a lag effect between improvements in the economy, more consumer confidence and the sense of philanthropy that can be inspired in more prosperous times. It is beneficial for an organization to market it’s brand before the effects of an economic upswing trickles to potential donors, in order to be positioned effectively later on. Considering current trends and the new marketing demands on non-profits, this is a fertile time to begin sowing the seeds of effective communication, and to invest in the same value proposition that has driven corporate products and services for many years.
“Strong, effective branding is important for a nonprofit organization, just like it is for companies. New York City alone has over 15,000 nonprofits, so brand building and getting mindshare, among foundations and funders, the media, and the constituents whom the nonprofit serves, is absolutely critical for success.” says Fred Fields, New York Managing Director of the Taproot Foundation.
While the annual gala benefit, membership drives and strategic corporate partnerships have in the past propelled many fund-raising campaigns, the emerging view seeks a practical, focused and more traditional application of budget dollars. “Image may not be everything, but in a world saturated with the clutter of marketing messages, cogent communication is the key,” says Dennis Ahlgrim, who helped create the visual identity system for The Nature Conservancy. “Communications audits can help eliminate ineffective marketing tools and leverage other channels in a more effective way. The fundamental questions are, ‘Who is the audience—and there may be many audiences—what is the message to deliver and what is the most efficient channel through which to deliver it?’ Corporate marketing programs place an emphasis on building image through repeated messages that are mapped out in advance. It’s important not only that the visual presentation and messages be coordinated, but also that a realistic budget is attached to the plans,” says Ahlgrim.
“All of our nonprofit clients have approached their challenges with more or less the same theme,” says Lori Ende, who has developed many nonprofit brand identities and who has recently completed the design of an annual report for AmeriCares, a humanitarian aid organization. “There’s no question that we’re seeing a renewed commitment to image building and spending in order to achieve a differentiated, distinctive message and overall appeal. Brands for nonprofits are no different from corporate brands, really,” she continues. “The point is to create a unique presentation that effectively communicates the core messages and the brand of the organization with a maximum level of impact for the marketing dollars spent.”
