When you decide to engage outside help, make sure you get the right stuff: nonprofit experience. Nonprofits are vastly different from for-profit businesses. The difference is not merely that one is focused on the bottom line and the other is focused on doing good.
Nonprofits differ from for-profit businesses in profound ways:
Social Purpose
Businesses sell products or services that fill a direct or immediate need of the consumer (H-m-m, that sure tasted good!) Nonprofits are selling intangibles: the good feeling that comes from helping others; increased awareness of social problems that needs solving; or motivation to take a socially conscious action. Nonprofits appeal to people’s values and aspirations.
Because the motivations for purchasing a consumer product and for doing good are different, the marketing is also. In addition, the nonprofit brand must have the overarching theme of being “good” and being “respectable.” A nonprofit brand can be fun, game-changing, and innovative but you have to keep its halo polished.
Intangible Results
For-profit businesses can measure sales, net revenue, return-on-investment, dividends paid. Nonprofit successes may not be easily measured. It’s often difficult to have that gold standard of evaluation, the double-blind study, both because it’s costly and unfunded, and because denial of services to a control group is not usually acceptable. How do you measure an improvement in the quality of life for a home-bound senior? It’s very subjective. While branding can and often does bring tangible results — so many homeless housed, etc. — results may have to be assessed in more indirect ways.
Multiple Constituents
Nonprofits have many kinds of constituents: clients who use their services, individual donors, foundations and government agencies that make grants, professionals who refer clients, alumni, members, staff, and the board. Research may be more complicated because all these constituents may need to be included and decisions must balance their often differing requirements.
Decision Process
Nonprofits are more consensus-oriented and democratic when gathering information or taking action than businesses are. Small to mid-sized businesses often have one decision-maker, who may consult with others but whose decision is final. Nonprofits often work through committees, with input from many constituents. Because of the consensus orientation, the executive director may not sign off on a branding project or a brand without making sure that staff is consulted and the board has approved it.
Resistance to Change
Nonprofits may not be comfortable with change. Businesses can do whatever is necessary to move ahead — investing in new technology, innovating delivery systems, advertising in new markets, dropping or adding product lines — but nonprofit leaders may face resistance from boards, staff, and funders when trying to make changes. Sometimes, a strong founder or loyalty to a founder will block change.
Need for Education
Nonprofit board and staff may lack branding experience. They may not understand marketing as it pertains to nonprofits — thinking that doing good should sell itself. Branding consultants often have to educate as well as create. Be sure the consultant you choose is both a good teacher and a good brand strategist.
Funding Constraints
Businesses have less restrictive funding options. Investments in advertising and marketing are considered legitimate, important costs of doing business. Nonprofits are often penalized by donors for “administrative costs,” which often include very necessary investments, such as computers, desks, health benefits for employees and, yes, marketing and branding. Your consultants must understand these constraints and work within them.
And, of course, the bottom line for hiring anyone: Make sure you can build a comfortable working relationship with whomever you hire. Chemistry matters.
