Every year in preparation for budget season, Masterworks lays out our convictions for what we see in the ever-evolving fundraising landscape. These convictions help us and our clients align on long-term goals based on studies and learning throughout the year. And they help keep us on track by narrowing in on the trends we see are having the biggest impact on fundraising.
Over the next few posts, we will share our five convictions for 2024. We hope these convictions spark conversations, ideas, and new areas to explore in your mission.
Conviction #1: Your brand matters. More than ever.
It is getting harder to know who to trust.
And this is true in so many areas of life. Is what we hear on the news true? Is what we see in social spaces real? And as the 2024 election draws near, this will likely only become more and more of a struggle.
It's even hard to trust that our mail will be delivered.
The good news is that Give.org’s study in 2022 found that trust in most nonprofits was on the rise. Nonprofits continue to rank above religious institutions, banks, and the government in consumer trust.
The bad news for most of our clients is that religious organizations for the first time are not at the top. And they have seen a sharp decline in recent years.
We are entering a time when we are increasingly suspicious of what we read and hear. And we are becoming more cautious about where we give our money. That's why having a strong brand is becoming increasingly important for nonprofits.
A strong brand can help you:
- Stand Out: With so many nonprofits to choose from, a strong brand will help you shine brighter. It makes you more recognizable among the competition — helping narrow donor decisions on who to align their personal brand with. In a Give.org study, 31 percent of donors said name recognition was important to them when donating.
- Be Seen as Reliable: With so many scandals happening, donors want to know they can trust a nonprofit. A long-standing and strong brand shows that the organization has remained steadfast, is competent, and does what it says it will do. And talking about what you have accomplished can continue to reinforce your brand; sharing accomplishments was the number one thing donors look for in the charities they trust.
- Be Consistent: People use consistency as a trust signal. A consistent brand across everything the nonprofit does — like its website, social media, and events — helps donors instantly recognize that they are in the right place. Donating is often an emotional response, and consistency helps lower barriers to conversions.
- Reinforce Why Your Work Matters: Brands can reinforce the “why” of your mission and become a visual cue for why your work is important and why someone should care. This helps the donor connect their gift with the difference it is making in the world.
- Save Money: Studies show that strong brands lead to reduced staff turnover and greater staff loyalty, decreases in marketing expenditures, improvement in word-of-mouth advertising, and more efficient decision-making, and they typically result in a 15 to 20 percent increase in average gift size due to a stronger affiliation and perceived value.
For many years, the term brand in the fundraising sector has been seen as taboo. Something that was at odds with a donor-centered view and a waste of valuable time and effort. However, your brand is essential. A strong brand can help donors feel safe, lower conversion barriers, and build out more partnerships in the future. As we navigate the complexities of fundraising in an era fraught with skepticism and uncertainty, let's embrace the power of strong branding to further grow the Kingdom of God and propel our missions forward
We hope these convictions ignite conversations, inspire ideas, and open new avenues for exploration for your ministry.
