Part 4: What Do People Think About Nonprofits in 2023? Opportunities for Nonprofit Brands
The 2023 Edelman Trust Barometer Report spotlights a significant trust divide caused by income inequality, and these findings underscore the urgency for nonprofit brands to help restore faith in institutions. With election season around the corner, and all of the heightened political engagement that coincides, nonprofits have the opportunity to create stronger ties to their audience. With our spot at the perceived ethical top, nonprofits have a unique opportunity to communicate their impact effectively, strengthen their feedback loop, and emphasize their commitment to long-term solutions. Capitalizing on these opportunities could make or break the public reputation of nonprofits in the years to come.?
1. Nonprofit brands can bridge the trust gap between people and institutions.?
Income inequality has created a mass-class divide—and with inequality, we get two rupturing trust realities. Right now, the top 25% of earners in the US give institutions a 63-point trust score, while the lowest 25% give our institutions a measly 40 points (Edelman 2023, 12).?
Taken in context, that 23-point gap is a gulf: The US has the second highest income-based trust inequality in the world (Edelman 2023, 12). That polarization is felt more starkly amongst Republicans in the US, with 50% of Republicans saying that our country is entrenched in divisions compared to Democrats’ 33% (Edelman 2023, 18). Then, when the chips are down, among those who feel polarized, their employer is the most trusted institution (Edelman 2023, 27).??
We can draw some connections: Poverty breeds distrust in institutions and trust polarization. When the systems and institutions—government, nonprofits, media—designed to elevate your circumstances fail you, who do you trust? You put your employer, the entity that gives you the money to pay your bills, at the top. You don’t bite the hand that feeds. But where’s the opportunity here? Well, nonprofits are also the hand that feeds. Nonprofits work to address systemic injustices, poverty, healthcare gaps, and more. We have the opportunity to better demonstrate that critical work, better explain and expand resources, and make nonprofit care more accessible.?
Nonprofits can build on their standing as the most ethical and one of the most competent sectors to bridge the trust gap to improve people’s circumstances. Building on practices like financial transparency and accountability, can win minds. But to win hearts, nonprofit brands can lean into some of other sector-specific strengths. For example, people believe that in order for a business to be trustworthy and non-politically motivated, it should be a trustworthy information source, base actions on science, and act on the same values over time. Nonprofits that abide by these trustworthy practices can strengthen trust in their brands.?
The stakes are high: If we succeed, nonprofits can continue their work. If we fail, we lose brand trust, and subsequently, the trust of the people who need our help most. To show people that we have the empathy and the competency to make a tangible difference in their lives. Some resources for demonstrating our impact to build trust are:
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2. Nonprofits can create a stronger feedback loop.
When you order something on Amazon, you pay, and in return, you have a package? in your hands in two business days. When you give to a nonprofit, what do you get in return???
Right now, nonprofit brands have an incredible opportunity to create a stronger, more tangible feedback loop between donors, members, volunteers, and community members to demonstrate their impact. Volunteering is down , and the days of dropping a dollar in the Salvation Army bin are over. But election season—and the upswing in political and social engagement that comes with it—is right around the corner. People will want to know that the resources they spend for your cause are put to good use, and we can accomplish that with a stronger feedback loop.?
Strengthening the feedback loop takes several shapes for a nonprofit brand: messaging, marketing, communications, and community. In terms of messaging, consider putting your nonprofit audience at the center of your story —framing them, and not your nonprofit, as the catalysts in your theory of change. The main reasons people engage with nonprofits are personal . In your branding and in your marketing, a stronger feedback loop looks like more personalized content, consistency, and proof of process. Transparency is king here. Our communications also have to uphold our high standards—surveyed respondents say they might stop donating to an organization because of poor, vague, dull, or irrelevant content. And we should make people feel connected almost instantly to a broader community of people who care about the same cause (check out some resources on this ).?
To create a stronger feedback loop and connection with our audiences, we have to show, not just tell, people where their money and time is going. We don’t have the luxury of mailing everyday consumer products, but when nonprofit brands strengthen the connection between a brand and its audience, we can clearly deliver meaning, impact, self-actualization, and community to our audiences.?
3. Nonprofits can emphasize that we’ve got our sights set on the long-term.?
Systemic unfairness is seen as one of the top three drivers of polarization (Edelman 2023, 17). Younger voices want systemic, long-term solutions—not quick fixes. With issues like climate change and systemic racism dominating the top concerns of Gen Z, younger people are interested in building a better future, brick by brick. “They are an activist generation … They take strong positions and expect others, including brands, to do the same.” They’re driving the change they want to see in the world.?
Younger generations aren’t interested in quick fixes, or maybe they understand that bandaids won’t solve something like ocean warming. They’re interested in long-term thinking (see the rise of movements like longtermism ) and systemic solutions.?
The opportunity here for nonprofit brands might be obvious, but it’s worth stating: When relevant, nonprofits brands can lean into their long-term goals and aspirations to address societal issues. When we can communicate that and bring the next generation into the fold, we can begin to address and change the systems that perpetuate violence, poverty, racism, and environmental havoc.?