For decades, the prevailing wisdom was that nonprofits should learn from for-profit enterprises how to "get their act together" and become "more businesslike." And nonprofits did learn.
Many have embraced best practices in branding, marketing, service delivery, money management, and leadership. They have also learned how to keep different business models running simultaneously: Generating earned income from sales requires different messages, communications, operations, and skills than does garnering philanthropic contributions, whereas generating funds through sponsorships, foundations, or partnerships each presents different challenges and opportunities.
To be successful in all these endeavors has required nonprofits to develop approaches and skills—particularly in communication and branding—that for-profits can learn from.
Connect on a deeper level
A nonprofit's mission and vision give people a reason to participate—and to believe—that's deeper and longer lasting than any specific offering. The value proposition goes beyond fulfilling a tangible or tactical need ("I need A to do B") to fulfill an emotional need. And that connection, when nurtured and sustained, engenders loyalty, creates advocates and ambassadors, and builds relationships that transcend transactions. Customers, participants, board members, and donors feel they are part of a shared enterprise.
For a business, forging this sort of deeper connection can provide market differentiation, create a corps of enthusiastic advocates, and help distance offerings from (dreaded) commodities. (Price is less of an issue if you really believe in a company and what it's selling.)
There are different ways to build this connection: Customers can identify with your mission, they might want to be aligned with what your brand means, or they might seek to be included in your culture—or a combination of the above. Apple, Starbucks, Volvo, and Ikea have benefited by creating such alignments. Forty years ago, Tom's of Maine introduced toothpaste that had meaning far beyond its utility, and user believers became a huge unpaid sales force.
Focus on relationships, not transactions
The Boston Symphony Orchestra (including Boston Pops and Tanglewood) sells more than 600,000 tickets annually. But because the organization is focused on building relationships, there are fewer transactions, and the cost of sales stays low. All communications do their tactical jobs and move people closer to the organization; even modest donors are encouraged to see themselves as investors and partners.
For businesses, a relationship focus encourages repeat customers, lowers the cost of doing business, increases margins, facilitates cross-selling, and gives people a reason to act in your favor that isn't based on price.
Provide "valuable" points of connection
Successful nonprofits know their constituents; they have to. Because people don't have to go to a museum or be a member of a conservation group, it's been imperative that nonprofits understand the rational and emotional drivers of their various constituents—and connect to what those people value. Quantitative and qualitative research is important, but direct interaction and listening are key.
With research and experience in hand, nonprofits—universities, medical centers, or conservation organizations—are adept at crafting different "ways in" for their constituents.
