Part 2: What Do People Think About Nonprofits in 2023? Strengths for Your Nonprofit Brand

By Kaylee Gardner and Mary Katherine Moore

Read the first part of this article on LinkedIn here. Read the article in full on Constructive's website.

Strengths for Nonprofit Brands:?

In a world struggling to address issues of climate, political polarization, and income disparities, people want to advance social progress. The 2023 Edelman Trust Barometer Report sheds light on sector-specific advantages for nonprofits amidst a social impact awakening. The report reveals three key areas where nonprofits brands excel: a growing interest in social impact, the sector’s ethical standing, and the sector possessing the building blocks of public trust. Nonprofit brands, if they harness these strengths, can build the bridges our polarized world so desperately needs.

1. More people are interested in social impact—for engagement and employment.?

One of the greatest strengths for nonprofit brands outlined in the 2023 Edelman Trust Barometer Report is that people—in their consumption and their production—are interested in advancing social impact. The latest report shows that 63% of people are willing to buy or advocate for brands based on their beliefs and values (Edelman 2023, 28). That’s a 5-point increase in just one year (Edelman 2022, 26), a year in which 52% of people said that capitalism’s harms outweigh its goods (Edelman 2022, 23).?

Social issues are increasingly top of mind. In fact, researchers are predicting that Gen Z may be one of the most charitable generations yet. Of all the generations, members of Gen Z “are the most likely to say they donate because they feel it’s just the right thing to do.” Increased politicization and polarization of everyday issues is dangerous, full stop. But the growing awareness of issues of politics, climate, and human rights are breeding a more engaged, social impact-oriented populace.?

These strengthening social contracts between people and the organizations (businesses and nonprofit brands) that they engage with extend beyond advocacy or consumption. More and more people want to work for an ethical bottom line. According to the 2023 Report, 69% of people believe that having a societal impact is a strong expectation or even a deal breaker when considering a job (Edelman 2023, 28).?

Where millennials entered the job market during a once-in-a-century downturn, Gen Z entered during a once-in-a-century pandemic, a moment of upheaval and social reckoning. Gen Z wants to see companies commit—and stick to—their DEI commitments and ESG goals. The “green collar” revolution is here, and people are more than willing to take pay cuts to put their time and energy in the impact space. When nonprofits authentically embody the values of a social impact-oriented audience, they can build relationships with audiences and employees that are founded on a shared understanding of the nonprofit’s brand, mission, vision, and goals.

2. Nonprofits are considered the most ethical industry.

If you’re an organization that depends on member, volunteer, or donor engagement, your reputation means everything. One strength from the report is that people view nonprofits in 2023 as the most ethical sector compared to businesses, government, and media (Edelman 2023, 26). Nonprofits earned an ethical score of 22 compared to businesses’ score of 18, media’s -8, and government’s -11.?

In the public’s eye, the government and media fuel a cycle of distrust. The majority of people believe that journalists and government officials are divisive forces (Edelman? 2023, 21). Nonprofit leaders on the other hand, are viewed more as unifiers—alongside educators and business leaders (Edelman? 2023, 21). Nonprofit brands can rally people around causes, it’s in our best interest to unite. With 68% of people believing that brands celebrating what brings us together and emphasizing our common interest would strengthen our social fabric, it’s no wonder why people see nonprofits in 2023 as ethical unifiers (Edelman 2023, 36).

Our social fabric is fraught with polarization and parallel media ecosystems. Sure, many for profit organizations try to appeal to as many people as possible since they have it benefits their bottom line. But for nonprofit brands, uniting people and bridging divides has a higher purpose. When you’re working to solve issues as existential as climate change or problems that require herculean international cooperation, like providing aid to Ukraine, we’re looking at an all hands on deck approach. Crises compel us to set aside differences and embrace collaboration. A problem shared is a problem halved—nonprofits have so much more to gain than boosted sales when we unite people around a common cause.

People care deeply about ethics, about justice, about moral integrity—and they see nonprofits keeping their promises to stakeholders. Take these guidelines from the National Council of Nonprofits:?

“It is so important that charitable nonprofits continuously earn the public’s trust through their commitment to ethical principles, transparency, and accountability. If only one community member or donor loses confidence in a charitable nonprofit because the nonprofit behaves unethically, that’s one too many.”

Virtue begets virtue. Nonprofit brands, which have earned the reputation as the most ethical sector, have an inherent advantage: Our bottom line is intangible—we look at our communities, our children’s health, our climate as indicators of success. When we lean into our ethical commitments and authentically embody them in our communications and actions, we can build more trust in our brand and its virtues.?

3. Nonprofits already hold the key ingredients to public trust.

Trust is everything in the nonprofit space. As we mentioned, trust is built in drops and lost in buckets. One key finding is that nonprofit brands already possess several of the building blocks of public trust. The report demonstrates that nonprofits are seen as the most trustworthy sector, with 51% of people believing that NGOs reliably provide trustworthy information, compared to business’s 48%, media’s 42% and government’s 39% (Edelman 2023, 10).?

Aside from people viewing nonprofits as unifiers, lower ethics scores across government, media, and business can be, in part, attributed to the inflammatory nature and newsworthiness of those sectors’ scandals. Take Theranos? for example: In 2021, there were 3,755 pieces of news coverage on Elizabeth Holmes and her company Theranos—and that was before the popular Hulu series, trials, and sentencings.?

The cycle of distrust surrounding other sectors—and the mistrust of their information—leaves a gap that nonprofits can fill with unbiased, scientific information. The report finds that a key ingredient to earning that trust: being a trustworthy source of information. People believe that providing high quality information insulates business action from politicization—and that basing action on science breeds trust (Edelman 2023, 34). Leaning into a nonprofit’s commitment to taking evidence-based actions and sharing only high quality research and information can help build or maintain trust in a nonprofit brand.?

Interested in reading the rest of this article? Check it out here.