Why NFP’s and Foundations should value their Brand

Douglas Sumner – not to be copied or reproduced without permission© Douglas Sumner. Please do not copy without permission

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“If this business were split up, I would give you the land and bricks and mortar, and I would take the brand and I would do better than you”

John Stuart, former CEO of Quaker Oats

Brand Value and Philanthropy


Key Drivers:

Government funding

How do we differentiate ourselves

in a crowded philanthropic market?

Corporate Philanthropy

Not-For Profit’s can differentiate

themselves by clearly articulating both the social and business

benefit(s)

Consider a Brand based business

proposition.

Your brand in support of theirs – in exchange

for philanthropic support

Demonstrate potential for return on investment


You can differentiate your requests for

Philanthropic support by highlighting the

value of your Brand and the business benefits

that flow from it.

Strong Brands establish long-term and power

balanced partnerships. This helps both parties to make decisions that

are commercial and more strategic in

nature.

The starting point is to understand what your

Brand is worth

Understand the value of your brand


We too have built our Brand

“We have invested 20 years and $2,000,000 (sic) to get where we are today.

Our Brand has attributes that can help you

That investment has built a powerful Brand that occupies a position of respect and credibility in the community as well as a Brand that speaks to considerable intellectual property around the operation of our market place. When considering your Philanthropic support you should know that you are ‘buying’ access to the attributes that make up our Brand for your benefit.

Our Brand supports a strong philanthropic proposition

Given that you are being offered the opportunity to leverage off the investment we have made to build our brand and given that access to our Brand helps you to achieve your own business goals, we believe that you will understand that a commercially viable and balanced level of philanthropic support starts at $500,000. (for instance)”

Our Brand is strong enough to give you a noticeable return on investment

Our Brand is of sufficient scale to support your CSR aspirations

By valuing your Brand, you are, in effect, saying to potential partners:


CONE Power Brand 100


Income before dividends and interest $9,345,026

Capital $11,000,000

Capital Charge 10.00%

Capital Earnings $1,100,000

'Intangible' Earnings $8,245,026

Brand Earning Index 41.00%

Brand Earnings $3,380,461

Brand Strength 29

Brand Discount Rate 12.90%

Brand Earning Growth Rate 5.00% Year1 2 3 4 5

Brand earnings 5 year forecast $3,380,461 $3,549,484 $3,726,958 $3,913,306 $4,108,971

Brand Earnings NPV Yrs 1-5 $13,017,437

Terminal Growth 4.00%

Terminal Value of Brand $48,014,943

Total Brand Value $61,032,379

Brand Value model


Key Inputs to the Brand Value Model


Major Brand Brand is a major brand in the Not for Profit ‘space’

Directly touch Australians

As the leading brand it will be instantly recognised and appreciated

Public Interest The Brand is Associated with an issue of significant public interest.

Brand will grow The Brand that will becomes increasingly prominent as the scale of problem becomes increasingly apparent

Favourable association

The opportunity to have your brand favourably linked with an issue of real concern to a key demographic

Now is the time The Brand will grow in value and the ‘cost’ of philanthropic support will rise to reflect that brand growth – now is a good time to invest.

Product and Service opportunities

The opportunity to work together to develop health, Lifestyle, technology and advice services and solutions for the demographic .

Connect with consumers

The opportunity for marketers to remain connected with consumers through philanthropy

Corporate Social Responsibility

The opportunity to demonstrate corporate social responsibility and significant foresight by supporting this major and currently underfunded public health issue.

Cause related marketing

Any number of cause related marketing opportunities.

Brand Value Proposition e.g


Brand Benefits Supporting NFP in meeting the challenge makes sound strategic sense for organisations looking to position their Brand through CSR

Commercial Benefits

NFP is seeking expressions of interest from organisations interested in providing products and services that can assist in supporting the needs of those affected.

Philanthropic Support

NFP is seeking expressions of interest from organisations with a history of Philanthropic activity and which have a willingness to support the Philanthropic activity of NFP.

Flagship Project NFP is seeking Philanthropic support for the introduction of the Flagship initiative.

Conversation with potential supporters (philanthropic value proposition)


Target your audience


•Philanthropic activities expose companies to new markets and increase market share through exposureNew Markets

•Philanthropic activities can involve the creation of products that meet social needs and increase differentiation.New Products

•Philanthropic activities engage new and existing consumers and contribute to a greater understanding of consumer expectations and behavior.

New Customers

•Philanthropic activities can lead to the development of cutting-edge technologies and innovative products also applicable to business use, patenting, and proprietary knowledge.

New Technologies

The benefits for companies from engaged philanthropy


Value your brand

Identified a range of relevant brand

attributes that can be woven into the philanthropic

narrative

Built a philanthropic narrative targetting the needs of donors

Research potential donors for ‘fit’

In order to leverage and grow the worth of your

Brand to increase philanthropic support:

Brand as a basis for a philanthropyProcess Summary


Thank-you for your attention

Questions ?

Why NFP’s and Foundations should value their Brand

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