Welcome to Research Friday! As part of a
continuing series, we invite a nonprofit scholar, student, or professional to
highlight current research reports or studies and discuss how they can
inform and improve day-to-day nonprofit practice.
Brands like Coca-Cola and Nike have one thing in common: they are known and recognized worldwide. These corporate-born brands have become some of the most iconic images in the world.
1 But brand value is just as important in the nonprofit sector as it is in the for-profit sector.
In a recent study published in the
Journal of Business Research, a brand is defined as “a name, term, sign, drawing, or any combinations of these, that serve to identify a firm’s goods and services and differentiate them from those of competitors.”
2 Nonprofits usually offer intangible services to their communities, in contrast to the tangible products and services usually offered by for-profit companies. This can make branding more difficult for nonprofits.
3
I want to outline some issues nonprofit organizations may face while trying to build or change their brand. Often, nonprofit leaders look at brands as just a “simple visual trigger from which to develop communication campaigns rather than a strategic tool for focusing the organization.”
4 It is crucial that nonprofits understand that brand development and management can directly contribute to the organization’s positive impact. The mission statement should drive the development of the brand and the brand should reflect the values of the organization. With successful brand communication, the organization is able to build trust with potential donors and clients.
4 The American Red Cross is a great example of trust building across donor and client lines. Their name and logo are so well-known that the average American trusts their brand and, (arguably) because of this, is likely to donate to their cause. This brand recognition is what makes The Red Cross the go-to organization in times of disaster. There may be many other organizations that are collecting donations for similar causes but The Red Cross has successfully built a solid brand which makes their organization stand out among the rest.