One of the key elements that all groups—nonprofit and corporate alike struggle with is how to budget accurately for communications efforts. When funds are short, often communication fees and staff are the first to go—at the moment when communication is exactly the thing that should be invested in to revitalize or generate new interest! There’s a smart way to address this: by using a smart, phased approach focused on defining who you are in the marketplace, and spreading the expense out over time.

First, a list of reasons why to develop a budget for phased branding in the first place:

• As one phase rolls out, results can be used for subsequent phases.
• Defining, or branding, your group stops the confusion between you and your competitors.
• It differentiates your group as THE place to purchase from, donate to, or visit.
• It keeps you in a “top of mind” position for your clients so that when they’re ready, you’re easily remembered.
• It helps others accurately describe the services you provide, which comes in handy when they attempt to promote your services to other potential clients. 
• It’s easily integrated into current staff load and time commitments.
• It offers the flexibility to be self-funded or funded through smaller grants or lines of credit over time.
• It allows your organization to respond to a quickly changing global environment.

Deciding what amount to budget

In the for-profit world, the standard for a communications budget is often 10-20% of projected gross. For growing companies, it can reach as high as 25%. Things aren’t so clear in the nonprofit world, where the average allocation for communications is 9-12% of an annual budget, often less. By definition, advocacy organizations allocate more of their budgets to communications, because advocacy is communications or outreach-based.

To calculate exact figures, you can take a percentage approach or a flat dollar approach. Some groups decide on an overall figure per period (that is, per quarter, month, semester, sales cycle, campaign season), then assign a percentage of this overall number for each type of expense (design services, mailing services, expansion into areas which generate significant income or good public relations, database management, internal staff costs, etc.)

This approach parallels an organization’s growth or decline throughout the year and modifies the percentages accordingly. The main advantage of a budget based on your organizational finances is that it is organic: spending grows or shrinks in line with your operating performance. Exceptions can be made, such as the launching of a new program or the introduction of new leadership.

Rolling out your phases

To budget effectively, know what to plan for in advance. Below is a basic phasing roadmap you can execute with internal talents or with assistance from outside professionals, to gain market share via differentiation from your competitors.

• Phase one: Dust off or initially record your brand promise: who you are, what you promise, what you do, what sets you apart, etc. Survey external communication methods (sent to people outside your group) and decide which of the tired ones can be fit into each phase and within your allotted funds for the year. Phase out those that aren’t working or combine them with others to increase cost-effectiveness. Develop a calendar of which tools will be used for which audience, for what purpose, within your budget limitations.
• Phase two: Revisit or develop key messages sent to your audiences or develop messages for the first time. Consider each message from a variety of perspectives, such as a web site visitor, facility visitor, executive program or department level, etc., or staff perspective. Try them on for size to see if they need simplifying or further definition and refinement.
• Phase three: Visit your web site and view it from each of your audience’s perspectives. Update areas on the site where messages do not fit audience needs or fail to clearly define your group as unique from others. Consider new online technology and decide which tools are appropriate for your needs to communicate what you need to say easily and clearly.
• Phase four: Examine internal communication tools (sent to staff only) such as memo formats, employee updates, intranets, phone lists, forms, sign-up sheets, announcements, and so forth. How do each of these tools reinforce your messages? Modify those that are not in line with company messages, purpose, etc.
• Phase five: Educate staff regarding communication changes. Emphasize how these changes play a key role in building consistency. Working together as a team, you’ll help differentiate your company for people who hear from you via phone, email, public or in-house speeches, networking events, or face-to-face meetings.
• Phase six: Survey your products or services for gaps in consistency with new decisions. If needed, refine their look, feel, delivery approach, follow-up method, or packaging.
• ... and lucky Phase seven: Repeat again the following year, and update as needed as your organization grows and changes.