When it comes to fundraising, many charities rely on direct response campaigns—essentially, asking for donations outright. While this method has its merits, new research suggests that a brand-focused marketing strategy may yield greater long-term success.
A study of 58 charities has shed light on the substantial benefits of investing in brand marketing, revealing that organisations that build strong brand identities can significantly enhance their financial sustainability and impact.
Understanding the Long-Term Benefits of Brand Marketing
In the commercial sector, marketing professionals recognise the power of brand investment. Brand-building campaigns create a lasting emotional connection with audiences, fostering trust and loyalty over time. At Rosterfy, we invest a sizeable amount of marketing resources and budget to keep our platform front of mind and synonymous with digital transformation in the volunteer management space.
Despite Brand Marketing being a well-established principle, the nonprofit sector has been slow to adopt a similar approach. A recent study shows that only half of the charities surveyed have even a ‘sufficient’ or ‘low’ understanding of advertising, indicating a significant gap in strategic marketing knowledge.
The report’s findings are compelling:
- Long-term brand investment yields an impressive 201% ROI.
- “Brand has a long-term multiplier effect” emphasising that investing in brand recognition and reputation leads to sustained benefits beyond immediate donations.
- 97% of respondents believe that the best results come from planning brand and direct response campaigns together.
- 63% of charities have seen proven results from a combined approach.
- However, 60% struggle with implementing an effective strategy, highlighting a need for better marketing education within the sector.
The Multiplier Effect: Why Brand Marketing Works for Charities
Brand marketing differs from direct response in that it doesn’t rely on immediate action but instead builds a strong foundation of awareness and trust. This leads to:
- Greater recognition and recall when donors are ready to contribute.
- A broader reach, engaging potential supporters who may not respond to direct donation appeals but will develop affinity over time.
- Increased resilience in times of crisis, as well-known charities are often the first to receive support.
Overcoming Challenges: Implementing a Brand-First Strategy
With 60% of charities struggling to implement a cohesive strategy, the challenge lies in shifting mindset and allocating budgets accordingly. Here are some key steps to successfully adopting a brand-driven approach:
- Educate Leadership: Charity executives and decision-makers must understand the long-term value of brand investment.
- Allocate Budget for Brand Growth: Rather than spending all resources on direct response, allocate a percentage to brand-building activities like storytelling, content marketing, and awareness campaigns.
- Measure Impact Differently: Unlike direct response, where success is measured in immediate donations, brand marketing success should be evaluated through metrics like awareness, engagement, and long-term donation growth.
- Leverage Multi-Channel Marketing: A combination of traditional advertising, social media, influencer partnerships, and PR efforts can enhance brand visibility.
Conclusion
The nonprofit sector stands to gain significantly from adopting a brand-focused marketing strategy. The evidence from this study underscores the need for a shift in mindset—from immediate transactional fundraising to a long-term, sustainable approach that builds awareness, trust, and loyalty.
Charities that embrace brand investment alongside direct response campaigns will be better positioned to attract and retain supporters, ensuring greater financial stability and impact in the years to come.
You can find more content and guides to topics like this one in our free to access Volunteer Management Masterclass