As Nation Copes with Economic Crisis, Domestic Social Needs Proves to Be the
Most Valuable Nonprofit Sector
BOSTON--(Business Wire)--
The YMCA of the USA`s brand is worth almost $6.4 billion, making it the nation`s
most valuable nonprofit brand, according to The Cone Nonprofit Power Brand 100.
This first-of-its-kind research explores the unique relationship between
nonprofit brand image and financial performance and revealed some organizations
may be leaving millions of dollars in potential unearned revenue on the table.
Cone, in collaboration with Intangible Business, developed the new brand
valuation to provide nonprofits with the information and inspiration they need
to make their brands work harder. Brands were valued based on five years of
consolidated financial data and a nationally representative consumer perception
survey, among several other metrics.
"Through this valuation, we want to help nonprofits better understand how to
protect and evolve their brands to generate as much revenue as possible," says
Alison DaSilva, executive vice president of Knowledge Leadership and Insights,
Cone. "Valuing their brands gives them a license to demonstrate to companies and
other partners that there is an established and justified cost to aligning with
their organization."
The Top 10
The Top 10 Nonprofit Power Brands are a Who`s Who of some of America`s most
beloved and recognizable organizations; of these, six are domestic social needs
organizations with long legacies of service and touch points in communities
across the country. The two surprise findings on the list are Catholic Charities
USA and The Arc of the United States, which despite being multibillion-dollar
organizations, have significantly lower brand image rankings than their peers in
the Top 10.
Power Organization Sector Brand Revenue Brand
Brand Value Rank Image
100 $ Million Rank
Rank
1 YMCA of the USA Education/Youth 6,393.6 1 6
2 The Salvation Army Domestic Social Needs 4,702.9 3 2
3 United Way of America Domestic Social Needs 4,516.9 2 3
4 American Red Cross Domestic Social Needs 3,146.2 7 5
5 Goodwill Industries International Domestic Social Needs 2,534.8 6 18
6 Catholic Charities USA Domestic Social Needs 2,361.1 4 53
7 Habitat for Humanity International Domestic Social Needs 1,768.0 9 4
8 American Cancer Society Health 1,359.8 11 1
9 The Arc of the United States Health 1,223.6 5 96
10 Boys & Girls Clubs of America Education/Youth 1,168.3 8 21
Brand Image
As a crucial component of the valuation, Cone conducted a proprietary national
survey of 1,000 American adults to gauge the familiarity and personal relevance
of each organization. These results, combined with other perception factors,
including media coverage and the percent of revenue from direct public support,
reveal the "brand image" of each organization.
The American Cancer Society stood out with the strongest brand image due in
large part to its standing as the single most relevant nonprofit organization
among consumers. In addition to many of the Top 10, other organizations who
swept the brand image chart included:
* American Heart Association - No. 7 Brand Image (Power Brand 100 Rank: 12)
* Special Olympics - No. 8 Brand Image (Power Brand 100 Rank: 58)
* Make-A-Wish Foundation of America - No. 9 Brand Image (Power Brand 100 Rank:
35)
* The Humane Society of the United States - No. 10 Brand Image (Power Brand 100
Rank: 55)
The consumer survey also revealed a key takeaway for all nonprofits - say what
you do. The results found nonprofits with a clear mission/issue in their titles
(e.g., the National Cancer Coalition) have higher consumer perception rankings
than organizations in the same sector whose names are more ambiguous (e.g., City
of Hope).
Brand-Revenue Synergy
By examining both a nonprofit`s image and its revenue, the research also
uncovered a disconnect between some organizations` brands and their financial
performance. When either significantly outperforms or lags the other, it is an
indication that there is unmet opportunity left on the table, in some cases
millions of dollars in potential revenue.
Several leading nonprofits - including The Humane Society, Special Olympics and
Make-A-Wish Foundation of America - may not sufficiently be leveraging their
strong brand images to generate greater revenues. Conversely, some
organizations, such as Catholic Charities and The Arc of the United States, have
substantial revenues, but inconsistently low brand images, which may indicate
they have occasion to grow their appeal to broader or more diverse audiences.
"The goal of a brand valuation is to determine the amount of money a brand
contributes to a nonprofit`s revenue," explains William Grobel, international
business valuation director for nonprofits, Intangible Business. "This critical
synergy between an organization`s financial performance and its brand plays a
significant role in generating additional funds to put toward mission services."
Sector Insights
In addition to the brand valuation, the study revealed a number of insights into
the specific nonprofit issue sectors. For example, at a time when the nation
faces an economic crisis and basic human needs are paramount, domestic social
needs is the most valuable nonprofit sector. Ten domestic social needs
nonprofits were included in the top quarter of the list. Other key sector
findings include:
* A majority of the environmental/animal-related nonprofits ranked in the bottom
half of the list and had similarly low brand rankings; however, environmental
organizations also have the highest growth spikes in revenue of all nonprofits
studied;
* The largest nonprofit sector is international needs, which accounts for 30
percent of the 100 organizations ranked; however, consumers consider this sector
to be the least familiar and least relevant;
* The health and education/youth sectors are the most familiar and most relevant
to consumers, yet many disease-specific nonprofits clustered indistinctly toward
the center of the ranking; and,
* Health nonprofits are also the most likely to generate revenue from special
events earning more than $1.8 billion from events alone.
"Today`s nonprofits are on par with the world`s leading companies - generating
substantial revenue and competing for the attention of elusive consumers. To
respond, they are increasingly taking a professional approach to managing their
brands and ensuring they clearly communicate everything the organizations stand
for," says DaSilva. "A compelling brand is an invaluable tool in the arsenal to
generate critical funds, secure rewarding corporate and government partnerships
and appeal to consumers, employees and volunteers."
For a complete copy of The Cone Nonprofit Power Brand 100 and a detailed
methodology, please visit http://www.coneinc.com/nonprofitpowerbrand100 or
contact Andrea List (alist@coneinc.com).Video commentary from Cone and quotes
and video from many of the Top 10 Nonprofit Power Brands are also available.
About the Study:
The Cone Nonprofit Power Brand 100 values 100 leading social service,
environmental and/or animal-related nonprofits based on financial data, a
consumer survey and other metrics. Cone solicited consolidated five-year revenue
data, as reported to the IRS, from each organization on the list and
consolidated 2007 itemized revenue and expenses. To determine the consumer
perception of each nonprofit, Cone commissioned a nationally projectable online
survey fielded by Opinion Research Corporation. Each organization was evaluated
by 1,000 American adults age 18+.
About Cone:
Cone (www.coneinc.com) is a strategy and communications agency engaged in
building brand trust. Cone creates stakeholder loyalty and long-term
relationships through the development and execution of Cause Branding SM, Brand
Marketing, Corporate Responsibility and Crisis Prevention and Management
initiatives. Cone is a member of the Omnicom Group (www.omnicomgroup.com).
About Intangible Business:
Intangible Business (www.intangiblebusiness.com) is a leading independent brand
valuation consultancy. Headquartered in London, UK, Intangible Business has a
presence in over 12 countries around the world, including the US. Intangible
Business` consultants combine formal accounting and marketing qualifications
with significant experience in industry and consultancies.
Cone
Andrea List, 617-939-8418
alist@coneinc.com
Copyright Business Wire 2009
