In
the highly competitive environment which the charitable marketplace
has become, charities have had to screw on their business
heads in order to maintain their profile and continue to attract
revenue through fundraising. Charities that once dominated
their field of expertise now find themselves fighting for
funds with a host of organisations providing similar services.
Because of this, successful branding has become the lynchpin
of charity business strategy, but it sits uncomfortably next
to traditional philanthropic aims. The potentially spiralling
costs, in terms of time and consultancy fees, of creating
an effective brand can alienate supporters who believe charity
cash should be channelled into achieving the charity’s
aims, not ‘wasted’ on business enterprise.
But Professor Ian Bruce, director of the Centre for Charity
Effectiveness at Cass Business School, says charities cannot
afford to ignore the concept of brand. “In the medium
to long term, any charity that doesn’t invest in its
identity or its brand is doomed to failure,” he says.
Nevertheless, there is an element of risk to the process.
“Successful re-branding will repay the investment many
times over. Failed re-branding will result in net costs,”
Bruce warns.
Research conducted by the Economic and Social Research
Council in 2001 found that charities could significantly
increase their income through voluntary donations by employing
fundraising managers committed to branding. Further investigations
in 2005 found that the growth of ‘exchange relationships’,
where donors are rewarded for their generosity with gifts
such as free magazines or the opportunity to take part in
a trek across Peru, are also forcing charities to think
more like businesses about branding and its impact.
Bruce says having a clear identity is absolutely essential
for all three main functions of a charity; fundraising,
campaigning and delivery of services. “If potential
donors don’t recognise the charity they’re very
unlikely to give,” he says. “If decision makers
don’t recognise and trust the brand then they’re
not going to be persuaded. If potential beneficiaries don’t
recognise the brand they won’t know where to go for
services and they’re less likely to trust the service
deliverer, especially if they’re in a vulnerable position.”
There are, of course, some exceptions to this rule. Charitable
trusts can remain largely anonymous and small organisations,
such as the Howard League for Penal Reform, can assert their
position by publishing credible research into a niche field.
For the rest, branding may appear prohibitively expensive
if calculated within one financial year, but could pay dividends
in the future. “I think the charity brand has to be
absolutely right,” says Cathy Pharoah, director of
research at the Charities Aid Foundation. “It has
to work well for the charity and it has to look professional,
and the spend has to be offset over a number of years.”
Pharoah says the process of developing a brand is broader
than simply designing a logo. “I think it should express
the organisation’s values and attitudes and indicate
what the organisation’s mission is. That’s why
it’s worth spending some money on.” Some charities
choose not to spend money on branding, adopting a deliberately
basic identity to make a point about avoiding unnecessary
cost outside their core work. However, Pharoah warns, this
is a dangerous strategy, especially for those looking to
expand.
Charity supporters may lack enthusiasm for taking a big
business approach to identity because it seems at odds with
a charity’s overall aims. But Richard Thomsett, director
of consultancy Brand Architects, argues that charities have
a more important responsibility to communicate through branding
than private companies. “Charities have not only to
prove that they exist, they have to define their motivation
for whatever role they’re undertaking and their success
at it,” he says.
Despite the importance of getting it right, Thomsett says
that in the past, charities and voluntary organisations
have wasted valuable money getting it wrong. “In the
not-for-profit sector it’s not always spent wisely,”
he says. “Sometimes you get some under qualified people
who spend in the wrong areas.”
Public perception
Marketing consultancy Black Pig assesses the perception
of its clients and presents its findings to the trustees
and supporters groups. The general public often has a poor
impression of a charity due to its outdated branding, and
this has to be communicated to its supporters.
Black Pig’s managing director Sarah-Jane Higgins says
the results of these public perception polls shock, helping
to convince supporters that re-branding is the right thing
to spend the charity’s money on. “Every time,
how they think they are perceived is not the reality,”
she says. “We need to have the key stakeholders believing
and seeing the key benefits. A few cold, hard facts about
the perceptions often kick starts that.”
And as a charity has no product to sell, its brand is all
it has to work with. “With charities that have been
going for such a long time, often what the charities stood
for has got lost,” Higgins adds. “There is no
strong brand, there is no consistent message, and there
is nothing to hang it on.”
London-based homelessness charity Thames Reach Bondway is
about to begin a process of re-branding. It took its current
name in 2001 when two charities Thames Reach and Bondway
merged to form one organisation. Now, it is to revert back
to Thames Reach.
Chief executive Jeremy Swain admits changes had to be made
to the brand. “We have to make sure that we get the
brand right,” he says. “The change is really
because five years on from the merger the name Thames Reach
Bondway clearly is too long. Staff are finding it difficult
to hold on to.”
Five years earlier, the Thames Reach Bondway logo was designed
by a member of staff, and cost cutting will continue to
be a key driver of this year’s re-branding exercise.
“The more that we can do in house the better,”
Swain says.
But many believe cost should not be the focus. Linda Seaward,
head of marketing and publishing, has led branding projects
at both the Children’s Society and Age Concern. She
says the emphasis, from both within the organisation and
from its supporters, is always about getting it right. “I
was never personally asked how much did this cost,”
she states. “The things that trustees argue about
are things like colour and logos, not the principle of it.”
Case study: Christian Aid
Christian Aid used its flagship fundraising drive Christian
Aid Week to launch its new branding (above) earlier this
month.
After working with consultants Johnson Banks, responsible
for the identities of Shelter and the UK’s presidency
of the EU, the charity designed a new logo and penned a
longer list of strap lines aimed at diversifying its marketing
strategy.
External relations director Kate Phillips says part of her
job was convincing the trustees that it was the right thing
to do.
“We involved them from the beginning and told them
what we were planning to do and get the agreement to do
it,” she says. “We had to make a case, which
I think is quite correct.”
Christian Aid is keeping trustees onside by ensuring its
re-branding costs are minimised, running both the new and
old identities in parallel.
“Some things we’re actually still running with
old logos,” she says. “If the material is up
to date but it’s got an old logo, we’re living
with that. That’s to save costs wherever possible
and to be environmentally responsible in everything we do.”
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