Not for profit: how the original for-purpose brands hold on to purpose

Guide Dogs, Red Cross and Cancer Council. No doubt one or more of these not-for-profit brands comes to mind if you’re asked to think about organisations that do good in the world. How about for-profit brands with purpose? Maybe Patagonia, Who Gives a Crap or Lush trip off the tongue?

Today, there are many more businesses who have plunged into the ‘purpose’ pond. The concept of purpose is no longer reserved for those traditionally perceived to be working at the heart of social change. Look around and you’ll see every business from AGL to Xero has planted purpose into the roots of their brand.

In this moment, where the worlds of profit and purpose are edging closer together, most discourse is concerned with what will transpire as purpose continues to saturate the corporate world. Yet less airtime has been left to consider what this convergence means for organisations who’ve always had good intentions.

In this purpose-led world, not-for-profit organisations are not only vying for donor dollars but facing new entrants into their purposeful domain. Often, these entrants come with bigger profiles, bigger budgets, greater awareness and more sophisticated structures. So what, if anything, can not-for-profits do to leverage their brands to help overcome this new threat? Is there a way they can harness the power of branding not only to survive but more so to thrive in this new landscape and create more sustainable impact?

Before we explore those questions, it’s worth reflecting on how we got here.

When profit met purpose

We’re a long way today from Milton Friedman’s doctrine of a world where a business’s sole responsibility was to generate profit for shareholders. While the rumblings were underway well before BlackRock CEO Larry Fink’s annual letter to CEOs in 2018, that event signalled the turning-point for purpose as Fink proclaimed to corporate America that purpose was inextricably linked to financial prosperity.

In the year that followed, 180 of the world’s biggest companies convened at the Business Roundtable and overturned three decades of convention to radically redefine the purpose of an organisation to be in service of all stakeholders, not just shareholders.

Turning our attention to the 2022 Australian Federal Election or two years of turmoil to our health and environment you can see that, now more than ever, the community is looking to corporations to clarify and commit to their social licence to operate. Indeed, research from our most recent FutureBrand Index reveals thriving brands are those that consistently translate purpose into everyday experiences, demonstrating their positive impact on individual wellbeing and driving change for good at scale.

Purpose under pressure

More than 50 years on from Friedman’s seminal statement, not-for-profit organisations are facing more challenges than ever in the heartland of purpose. The pandemic has brought resourcing pressure into a harsh, new light for this sector, and the resulting financial strain is compounded by competition from every direction – both from their peers close to home, and from corporate brands more recently enlightened by the virtues of purpose.

As we look ahead, what must not-for-profit organisations do to double down on their role in delivering social value? And how might the strength of their brands help drive growth and build trust at every step of the way?

Where to from here?

We’re under no illusion that brand is a silver bullet. We also know many of the challenges facing the purpose-led sector are systematically entrenched. However, we do know from our own research and experience that when you strengthen the link between your brand’s purpose and the everyday experience, your brand gives your organisation a measurable advantage.

Now seems like an opportune time to reflect on the journey of purpose but also to surface a series of opportunities from which others can learn. Some guiding thoughts to embrace when building a brand to sustain a not-for-profit organisation for years to come. Here are five opportunities not-for-profits can learn from and embrace to build a brand that will sustain their organisation for years to come.

1. Align with strategic clarity

As the landscape becomes increasingly sophisticated, there’s a need for not-for-profit organisations to embrace some of the organisational maturity that serves to sustain many corporates. The trick is growing up without growing apart and away from your grassroots origins. In other words, striking the right chord between the heart and the head.

As one not-for-profit manager explained, it’s about balancing the “growing risk of becoming too bureaucratic – a corporate entity removed from real-world impact” with “helping staff see we need to be more flexible, agile and accountable.”

By laying the foundation for a brand built with strategic clarity, organisations can not only protect their authenticity by purposefully channelling their passion, but also ensure employees are aligned and moving together towards a common focus.

2. Paint a bigger picture

The strongest brands are built with purpose, but we often see not-for-profit brands let their ‘why’ fade out of focus. It’s easy to get wrapped up in the nitty gritty – focusing on what you do or how you do it: “When you’re in a passion-based organisation you get so involved in the detail” in the words of one not-for-profit leader.

In these situations, it’s critical to find the strength to rise above and paint a bigger picture for all to see. One that brings purpose to life with the full colour of emotion that truly moves people to act.

3. Stand out

The social, economic and environmental fabric of our communities is underpinned by not-for-profits’ mission-critical work. Admirable as their world-class ambitions and endeavours may be, without a world-class brand that hits the same mark, they can blend into a silent sea of sameness. “We deliver specialist, critical services, but what we do and our branding doesn’t match up” is a sentiment we’ve heard frequently in the not-for-profit sector.

Before standing out, the job is to look into an organisation’s roots. To unearth the authenticity needed to carve out a unique position in a crowded sector with a brand that can communicate a clear and compelling competitive advantage. When you do hit on what defines you, people can more clearly see what makes one not-for-profit different from the next in ways that are meaningful, motivating and memorable.

4. Think systemically

A change in landscape requires a change in thinking. As Einstein so rightly knew, expecting different results by doing the same thing is a futile pursuit. In opening up to outside perspectives, not-for-profit organisations can unwind “challenges around innovation and accountability” and embrace unconventional partnerships to solve deep-rooted problems that run beyond organisational and sector boundaries, collectively.

No longer is it enough to simply look left and right in a close-knit group of peers. Now the impetus is on organisations to draw inspiration from beyond their sector.

5. Deliver a consistent experience

Purpose might be turning up in more places than ever, but that doesn’t dilute its utility as a powerful tool for distinction. Rather than moving away from purpose, not-for-profit organisations need to run confidently towards theirs. Doubling down on their commitment and helping it show up consistently and tangibly at every touchpoint.

With a typically wider audience base with whom to connect – from beneficiaries to donors, and volunteers to government – not-for-profit organisations need brands with the flexibility to adapt to a variety of places, spaces and moments of interaction. While the signifiers may change depending on context – think everything from words to colours – the brand’s identity and experience must stem from a consistent vein of truth that guides how a brand behaves out in the real world.

A brighter future depends on us all

The future doesn’t rest solely on not-for-profit organisations in their ability to harness the power of brand.

As entrepreneur and humanitarian activist, Dan Pallotta, reflects, some of the barriers not-for-profits now face are symptomatic of broader societal perceptions around how they should function: “When looking at a charity, don’t ask about the rate of their overhead. Ask about the scale of their dreams – their Apple, Google, Amazon scale dreams…and what resources they need to make them come true, regardless of what the overhead is.”

Embracing this mindset is crucial if not-for-profits are to leverage their brands to grow their impact in the world.

As for the rest of us, we should continue doing everything in our power to support those propelled by purpose, not least because helping their dreams see the light of day is good for us all.

This article was originally published in two parts in CMO on 23 August and 4 October 2022.