Charity rebranding: why it’s (usually) a disaster

Here’s a hard truth: If you do a major overhaul to your nonprofit brand, the most likely outcome is loss of income.

The exact opposite of what it’s meant to do.

I know this may be unwelcome news. But ask anyone with long experience in fundraising, and they’ll say the same things.

There are exceptions and all kinds of caveats to this, and there are “rebranding” approaches that can range from harmless to positive.

But bottomline: Approach any discussions about rebranding with fear and trembling, because it is a road that usually leads to a lot of pain and loss of revenue — and people’s jobs.

Yet it keeps happening.

Here are some helpful thoughts from Mark Phillips, on his Fundraising Insight substack newsletter: What Drives the Charity Rebrand Reflex? He compares nonprofit branding with commercial branding:

Commercial companies rarely change their names. They evolve logos carefully because brand equity is money in the bank. For charities, brand equity lives in the trust and habits of predominantly older people … yet many imitate the marketing approaches of sportswear and digital brands.

Check out the slow, incremental changes to Apple’s logo, from 1977 to now:

Apple-logo-evolution.jpg

Here’s Mark’s take:

In business, a rebrand must be justified by evidence: market data, ROI, and increased value for shareholders. In charities, those numbers rarely exist. Decisions are made on instinct, not insight – often shaped by what the marketing and design press praises as “bold” or “game-changing.”

Believe it or don’t – those experienced in the nonprofit sector know exactly what Mark is talking about. It keeps on happening. Why? Here’s Mark’s theory:

Rebrands often come from ego, not strategy…. When it launches, those involved get the spotlight. When it fails, the damage appears years later, in falling income and redundancy rounds. That imbalance – personal upside, institutional risk – ensures the cycle repeats every few years….

I’m quoting Mark extensively here, because he is telling the truth – a truth that should be heard.

If the need to rebrand virus is circulating at your organization, get help! Subscribe to Mark Phillips’ substack.

Or read my book on nonprofit branding, The Money-Raising Nonprofit Brand.