What Should Really Scare your Nonprofit?

No, I am not talking about the overload of candy your children will receive because of Halloween (although you should be concerned.) I am not referring to the $6.9 billion dollars Americans will spend on Halloween this year (although I am shocked).

I am talking about something that is more detrimental to the growth of your nonprofit: fear of failure.

I have been involved with non-profit organizations as a designer and brand consultant for 20+ years. I like this sector of the economy because they really want to improve people’s lives, here and abroad. Although for-profit companies say this, I raise my eyebrow every time I hear it. (For the record, social responsible companies do exist).

[tweetthis display_mode=”box”]There is a major fear shared by both the non-profit and for-profit sectors: failure. [/tweetthis]

The difference is, a for-profit company integrates risk-taking into their culture so their employees will try new things, fail, recover quickly and assess. Typically, a nonprofit does not encourage this and miss out on new ideas.

This avoidance of failure should really scare nonprofits. In my experience, it shows up in their ideas about branding. Unfortunately, this leads to deficits in other areas.

According to David Srere, Co-CEO of global branding agency Siegel + Gale,”Branding is the sum total of an individual’s experience with an organization.” This tells us, how an organization or business is perceived by a certain audience will impact their position in a crowded marketplace. How one is differentiated and how that is communicated will determine longevity.

Unfortunately, many nonprofits view branding as the domain of the for-profit sector. For example, Nike has branded itself well over the last 20 years owning the American basketball market. It has even taken the risk of moving into the international soccer market traditionally dominated by Adidas. Nike’s position is envied but in the nonprofit sector, their branding is probably viewed as ‘slick and deceptive’. Ironically, there are large nonprofits that have figured out how to do branding and maintain their integrity such as the Susan G. Komen Foundation and The Red Cross. There are also small to medium size nonprofits (my typical clients) starting to figure the ‘branding thing’ out.

But the fear of failure is still there and can often be seen in two extremes: 

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The first extreme is an organization with strong vision, mission, objectives, etc. and a weak visual brand identity.

These nonprofits are started by people with deep convictions, good intentions and good connections. But branding is not viewed as a priority. The executive director may create the marketing materials or give them to an inexperienced designer. The materials are suppose to send the message that they are different from other slick nonprofits and for-profits. But as the organization grows and draws more attention, people began to see a mismatch between the branding and organizational tenets (vision, mission, etc). Nonprofits like this appear amateurish because it is obvious they did not invest enough in linking quality branding and marketing to their strong vision, mission and objectives. They may fear being perceived as opportunistic in their marketing materials. So, they downplay presentation and focus on creating good written content that demonstrates measurable outcomes. But, unfortunately their marketing materials are not memorable.

This suggests that they are not ready for primetime. People love to hear about what nonprofits are doing but who wants to be associated with visual presentations that scream mediocrity?

So, what are the deficits that this extreme leads to?

  • Authenticity complex-Using ‘us vs. them’ language to build credibility.
  • Novice-Using presentations that are boring and pedantic.

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The second extreme is an organization with weak vision, mission, objectives, etc. and a strong visual brand identity.

Mission creep, an immediate crisis or interest surge can reveal a weak nonprofit infrastructure. When scrutiny is magnified, the organization often collapses under pressure. But what if I told you that most of these issues go back to the vision, mission and objectives? What is on paper does not match what is being presented. Unfortunately, there are nonprofit leaders who fear being overlooked or being exposed so they take a ‘slick and deceptive’ approach. They spend good money on branding but ignore the importance of clarity in vision, mission, etc. Telling happy emotional client stories to attract the media and donors takes precedence. 

The danger is appearing only concerned with how you are perceived: all style and no substance. Overpromising and undelivering is typically the result.

So, what are the deficits that this extreme lead to?

  • Propaganda-Exaggerating success stories and claims at the expense of outcomes.
  • Micromanagement-Maintaining excessive control to minimize questions from the outside.

If your nonprofit is at one of these extremes, this should scare you because it will impact your ability to solicit funds, function, attract and keep talent. It reveals a culture of fear. Nonprofits have to learn how to ‘fail fast and cheap’ like companies so they benefit from the knowledge that comes with failure. In defense of nonprofits, they also have to fight a perception by donors that failing is the equivalent to wasting money. I know because I worked at a few organizations over the years and had to address this kind of donor disenchantment. 

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The ultimate goal is to be an organization with a STRONG vision, mission, goals, objectives, etc. and a STRONG visual brand identity. This means exploring ways to utilize some for-profit strategies. Branding should be approached strategically with an overall long term investment view: Brand and visual identity, strategy, positioning, tone, etc. Marketing should be approached with an experimental mindset with a flexible long term tactical view: learn how to respond to the market; that’s why it is called marketing.

CharityNetUSA gives specialized assistance to nonprofits so they can form successful and sustainable organizations. I found one of their slideshows titled ‘Top five reasons nonprofits fail and how to avoid those dire mistakes.’ Guess what? Reasons #3 and #4 are connected to branding and marketing.

That should tell you something.:)

Also, read our brief article on the Basics of Nonprofit Branding.

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