Transforming third sector brand building: For the many, not the few
Chris Molloy, co-founder and chief client officer at Brand Potential, chats about the significance of third sector organisations investing in brand, and why there is still a long way to go for these brands to achieve their full potential.
The importance and impact of brand building in the third sector has been well documented. Many high-profile charities and social enterprises have invested significantly in developing their brand and marketing strategies to raise their profile, build affinity and achieve fundraising goals. Several years ago, Macmillan reported an uplift of 23% in donations after developing their brand presence to resonate with a broader audience. Last year, Barnado’s announced a rebrand ‘to reach more diverse audiences and build trust with children and young people.’
But there is still a long way to go to unlock the true value of brand in this sector – a sector that really is focused on changing the world, and let’s face it, more so than many consumer goods brands claim to be doing. Significant barriers prevail that prevent the vast majority of charities making the difference for which they exist.
Arguably the biggest challenge is the need to shift mindsets, amongst charities and the public alike, to an acceptance that any business, including social enterprises and not-for-profit organisations, needs to invest to create value (which for charities means maximising donations). Last year, Brand Potential rebranded Microhive, a social enterprise on a mission to champion the collective power of giving pennies not pounds.
Microhive CEO Kate Frost believes there needs to be a mental shift amongst charities. She says, “They have to justify every penny. They can’t risk being perceived as wasting donations, and for much of the public and other stakeholders, investing in a brand is seen as needless. There needs to be a cultural shift. If spending 35p of every £1 donated on fundraising, leads to an additional £1+ being generated – that is a great thing! We just need to land this message.”
In his brilliant Ted Talk entitled ‘The way we think about charity is dead wrong,’ the US entrepreneur and author Dan Pallotta argued that there is a massive disconnect between the economic need for charities to invest and the public’s reluctance to want their donations to go on anything other than the worthy cause with which they engage. This was in 2013, but we wanted to explore the prevalence of this attitude today, so we conducted a consumer poll for this article… and still 44% feel uncomfortable with their donations being directed to brand and marketing activity.
There are nearly 170,000 registered charities in the UK, and 96% are small with a revenue of less than £1m – “so many tiny charities trying to make a difference to some of the world’s biggest problems,” said Dan Pallotta. Charities that can’t afford to recruit the marketing people who would otherwise transform their brands. This is where we, the brand building industry, can make a difference by providing pro bono or semi pro bono support, as is the case with Brand Potential’s partnership with Microhive.
As Kate Frost said, “The marketing industry has to play a role. If every agency supported one or two charities or social enterprises each year, as you do at Brand Potential, then this will have a tangible impact on society which benefits all of us, and our friends and families. Already we are seeing the results.” Since its rebrand last year, Microhive has seen web visits up by 25%, and new business increased year-on-year by 67%.
That 44% is a big number to shift but we, the marketing community, can help to make a difference. After all, we talk a good game about how we build brands that shape culture and society, surely the third sector is where we can really put this to the test.
