Ben Roberts

‘You gotta spend money to make money’ is the advice given to every new business and start-up, and it rings true – particularly when it comes to marketing, advertising, and brand. After all, what’s the use in having the world’s greatest product or service if nobody knows about it? 

For charities, however, this sort of spending can be easily misrepresented and treated as if it’s money down the drain. The sector comes up against scrutiny over their marketing, advertising, and brand spending in the news over and over again, where the costs of campaigns are cited with the tone that the reader themself has been swindled. It’s a double standard that acts as an additional hurdle for charities looking to grow, and relies on the assumption that there’s no return on charities spending money on glossy campaigns or prime-time ads. In most cases, this simply isn’t true.

The Spotlight on Charity Spending

Recently, several UK charities have found themselves under the microscope, with headlines questioning their spending on marketing and brand management. Critics argue that funds should be directly used for the cause, not on flashy adverts or brand consultants. To a layman, this may seem like a no-brainer – why should a charity spend donations on anything other than their core mission? This, however, is a continuation of a public expectation that charities cannot be seen to operate under the same rules as businesses, coming from the same concern that leads people to disapprove of charity employees receiving pay.

Charity marketing does all of the same things as corporate marketing, and more. Where corporate marketing presents a single solution to a problem, charity marketing benefits from simply raising awareness of a cause. Charities rely on brand trust to a greater degree than most companies too. High-quality marketing materials and a strong brand image can make a charity appear more credible and trustworthy, and when potential donors see that a charity is professional and well-run, they’re more likely to donate.

The ROI of Advertising

Return on Investment (ROI) is a crucial concept here. We in the sector understand that for every pound spent on fundraising and marketing, a charity can raise several pounds in return. Without that initial investment, the potential for raising substantial funds diminishes. This is true at many levels of marketing spend. For example, advertising executive Rory Sutherland spoke recently on how small choices can affect the success of a charity’s fundraising campaign. He speaks about how switching cheap paper to expensive card stock in leaflet campaigns resulted in a significant increase to donations made, an example that dispels the gut notion that a charity should cut all costs wherever possible. Monitoring the success of these choices and the lasting impression in supporters’ minds is vital to understanding the full picture of a brand spend.

Guiding Your Brand

All of this is not to say that all brand spending is justified, of course. In many cases, we steer charities away from rebranding efforts when we deem via a research project that the supporter reaction will not be positive, a step that we need to recommend for any charity looking to make waves with a bold new approach to their brand. The spend on these overhauls is often cited in stories where mishandling of funds is raised.

However, a day-to-day marketing spend is vital to the maintenance of a charity’s success. Next time you see a charity ad or a marketing campaign, remember – it’s not just about looking good. It’s about raising awareness, building trust, and ultimately, generating more funds to make a bigger impact. Marketing and brand management are not just expenses; they’re essential investments in the future of a charity.

If you’re a charity looking to boost your brand and fundraising efforts, don’t hesitate to get in touch with us. We at nfpResearch recently hosted a webinar on this topic, exploring how our Brand Raiser model can be used by charities to effectively calculate the likely ROI on their advertising spend. We specialize in helping charities navigate the complex world of marketing and brand management, helping to enhance brand image and maximise fundraising potential. Email insight@nfpResearch.com if you want to learn more.

Thanks for reading, and keep supporting the causes you care about!