As individuals and communities become more connected through technology, news has become instantaneous and disruption more frequent. This technological ecosystem, however, puts pressure on corporates and charities to be more transparent.

Just being a charity with a good cause is not enough today to attract donors. Charities need to be competitive, and focus on more than just promoting a good cause or brand awareness. To compete in a world of disruption, fake news and insatiable media consumption, charities need to focus instead on managing their reputation.

Reputation is defined in many ways, but in this instance we define it as the level of trust, admiration and respect an organisation has among its stakeholders. Just as corporates have learnt that consumers are demanding more from a company than just its products and services, charities will be expected to be more forthcoming about their organisation.

While there are various approaches to telling your charity’s story, many of which incorporate communication strategies, here are five ways charities can build their reputations.

1. Set up a definition

Defining reputation is a simple basic, yet despite being so obvious it can be overlooked by many organisations. Reputation is an intangible asset, so a clear definition gives an organisation a focal point and aligns thinking. This helps instil a culture that holds reputation at the heart of everything an organisation says and does. A definition also helps key stakeholders measure performance, and creates an understanding as to how funds should be allocated for maximum benefit.

2. Use perceptions to drive support

A key reason for organisations, including charities, to invest in building and maintaining strong reputations is the positive impact this has on the level of support they can expect.

For charities, this can pay off in terms of people’s willingness to donate as well as trust the organisation when there is a crisis. Through tracking charity reputations at our market research company AMR, we have noticed that the likelihood to donate and trust an organisation in a crisis more than quadruples for those with strong reputations.

While reputation is an emotional connection, it is shaped by an organisation through building on rational perceptions. Firstly, the organisation needs to identify the elements that have the greatest impact, then use these to develop messaging and initiatives that support its objectives.

3. Identify risks

Monitoring and identifying reputational risk is critical. With 15 years of experience measuring reputation, at AMR we have found that one of the greatest risks for organisations is public perception built on assumptions that do not match reality.

Charities and NFP organisations need to be aware of perceptions that may just be a halo from positivity toward the sector itself. When there is a gap between perception and reality, an organisation’s openness – the key driver of trust – can be called into question. Charities need to be transparent not only about what they are, but also what they are not.

4. Define a purpose

Consumers and donors want to know about the companies and charities they support – what they stand for, and their reason for being. Established charities typically have multiple areas of focus and can treat each as a separate entity, making it a challenge to present a homogenous message. New organisations are able to carve out a niche, making it easier for them to articulate their story.

In both cases, it is not good enough for the organisations to simply tell key stakeholders about the good work being done and the results being achieved. Stakeholders expect charities to clearly define why they exist and how they differ from others in the sector. This needs to be compelling and succinct – something that every person in the organisation lives and breathes, and constantly discusses with stakeholders.  

5. Show how you are delivering

Each year, a reputation study ranks Australia’s top 40 charities. Consistently, organisations that directly service communities – St John Ambulance and the Royal Flying Doctor Service of Australia, for example – rank higher than organisations with a more global focus, such as Amnesty International, Greenpeace and World Vision. This would suggest that charities seeking to build their reputation should focus on communicating how they serve Australians and Australian communities.

Clearly, there are other ways charities can build their reputations. Not all options are relevant for all organisations, as each faces its own particular challenges. The key takeout is that reputation is continuing to grow in importance.

Reputation is built over time, and charities that focus on building and protecting their reputations will be better placed to weather any storm of crisis or disruption.

Justin Cain, group account director, and Kate Hamilton, account director, AMR.