In the hustle and bustle of day-to-day operations at nonprofit organizations, brand strategy often takes a backseat to more tangible activities like serving clients, fundraising, and program development. Some leaders even feel that branding isn’t an activity they should participate in. If you’ve read any of my recent blogs or articles, you’ll know what I am going to say next. But, raising my voice for those in the back, here goes.
Neglecting your nonprofit’s brand is a costly mistake.
The cost of neglect can affect your organization’s reputation. It will also be felt in your hiring and volunteer recruiting results. You’ll also experience it internally in your organization’s culture. All of those consequences can lead to a fatal end for an organization. And yet those consequences may not directly reflect the cost to an organization’s bottom line. Make no mistake, there is a direct cost from neglecting your brand to your bottom line. In this blog post, I’ll explore the tangible return on investment (ROI) of branding for a nonprofit’s bottom line and why it’s essential for long-term success.
Understanding the ROI of Branding
Branding is more than just logos and colors; it’s about cultivating a strong reputation and emotional connection with your audience. A strong brand is built on an organization’s mission and core values. Investing in your nonprofit’s brand yields significant returns, including increased donor engagement, enhanced credibility, and more significant funding opportunities. In other words, it can positively impact long-term viability.
With a clear understanding of the significance of branding for nonprofits and its potential return on investment, let’s now shift our focus to practical strategies for measuring the impact of branding initiatives on key metrics.
Measuring ROI
Understanding the metrics associated with branding allows nonprofit leaders to quantify the results of their initiatives, identify areas for improvement, and make data-driven decisions to optimize their branding strategies. In this section, we will examine key performance indicators (KPIs) and metrics that you can use to assess the effectiveness of your branding efforts and demonstrate the tangible ROI of brand.
Donor Retention
Long-term sustainability relies on engaged and loyal donors. A strong brand fosters loyalty among donors, leading to higher retention rates. Measure donor retention over time to gauge the effectiveness of your branding efforts.
Increased Donations
Your brand should also be integral in increasing your existing donor base by appealing to new donors and funders. Analyze donation trends before and after implementing branding initiatives to determine their impact on fundraising revenue.
Volunteer Engagement and Retention
For many organizations, volunteers are crucial to keeping their doors open. Assess volunteer recruitment and retention rates to see if branding efforts have led to increased engagement.
Brand Recognition
There is increased competition for every donor dollar and volunteer hour. Brand awareness is crucial to long-term viability. Conduct surveys or focus groups to measure brand awareness and perception among your target audience.
Net Promoter Score (NPS)
NPS is valuable for measuring true customer sentiment, identifying areas for improvement, and tracking changes in customer satisfaction over time. It provides actionable insights you can use to enhance stakeholder experience and ultimately drive growth.
A Real World Example
Lutheran Social Services of Central Ohio (LSS) is a social services organization with 20+ programs and locations in 25+ Ohio counties. Programs include food pantries, homeless shelters, domestic
violence services, senior living facilities, and affordable housing. The yearly budget is $50+ million,
funded by federal grants, corporate and individual donors, and billable services. LSS employs
approximately 500 people, including a centralized marketing team of three people.
LSS’ size and complexity hindered its ability to communicate its impact as a whole. Many
community members were not aware that certain programs were connected to LSS. In
addition, the organization’s age was reflected in its supporters, mainly older Lutheran church
members. Their congregations were diminishing, as was LSS’ donor base. We knew that establishing a more unified messaging platform and a more modern visual identity would strengthen LSS’ ability to gain greater recognition in the communities it serves.
My team built a brand new brand framework and launched it both internally and externally in 2017. This included a new website, new social media channels, rebranding all printed materials from business cards to building signs, updating individual program marketing and communication strategies, and consolidating communication strategies to reflect a unified brand. The team also added new engagement strategies including advocating for public policy change, capital campaigns for program expansions, and targeted PR campaigns.
The rebrand showed immediate positive results in community perception and recognition.
- Online donations doubled
- According to surveys, perception of LSS’ brand personality shifted from “traditional” to “innovative and “well-meaning” to “effective.”
- The overall Net Promoter Score increased to 67 and the donor Net Promoter Score increased to 74
Overall, the new brand built positive community awareness and engagement and has set LSS up to grow its impact on behalf of people in need for another 100 years. You can read more about the rebrand here.
Investing in your nonprofit’s brand is not just about aesthetics.
It’s about building trust, engaging stakeholders, and driving meaningful impact. By measuring ROI through metrics like donor retention, increased donations, volunteer engagement, and brand recognition, you can quantify the value of branding for your organization. A strong brand can be a powerful catalyst for positive change in the nonprofit sector.
Let’s work together to create a strategic brand that reflects your mission memorably and authentically. Schedule a discovery call today!
