The private sector is out-fundraising us. Why is this happening, and what can nonprofits do about it?
Nonprofits, in 2026 your competitor isn’t other nonprofits. It’s the private sector.
A few weeks back, I wrote about how this is showing up in the DAF ecosystem. Today, I’ll dive into how this is happening in marketing.
The Rise of the “Purpose-Driven Brand”
Successful private companies know how to market well — and that means using psychology. Surveys show 79% of consumers report a preference for buying from brands that align with their values.
Smart companies are telling consumers they can “do good” by buying their stuff. The most extreme example of this is tentree — a BCorp and clothing brand that advertises every product “plants 10 trees”.
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For-profit companies stealing from the charity playbook
Not only does tentree market their product’s charitable impact, but they also have better stewardship than most charities. They offer their customers a “virtual forest” to see the trees they planted with their purchases. It’s simple, inspiring, and personal — and encourages the customer to spend more to “grow” their forest. They even say you “do good” with their rewards program.
On their American and Canadian sites, they offer a monthly sustainer program, which involves a monthly fee to plant more trees. However, these monthly gifts don’t appear to be part of a 501(c)3 in the USA, nor a registered charity in Canada. (And they are gifts — the customer isn’t getting anything tangible in return)
As a private company, there’s no accountability to ensure the “monthly sustainer” revenue is directed toward tree planting. In fact, 100% of these subscriptions could theoretically be counted as profit for shareholders, and no one would know. (100% could also go to tree planting — we just don’t know based on the information available. There are no public financials like a charity would have).
Yes, they are a B-Corp, however B-Corp status roughly involves:
- Showing overall social and environmental impact.
- Reviewing governance, worker treatment, environmental impact, and transparency.
- Publishing public impact reports
- Consideration of stakeholders in addition to shareholders
Nothing in the B-Corp certification earmarks subscription funds, mandates they publish their financials, nor does it dictate any particular part of their revenue must go to tree planting.
Fundraisers reading this might have their jaw on the floor.
When a top concern from donors is responsible use of funds and questions around “overhead,” it’s mind-boggling that a private company collects monthly gifts without the legally-mandated accountability of a charity.
So how are they getting away with this and thriving? How is the private sector out-fundraising us?
Simple — marketing.
Effective Marketing builds trust and motivates spending behaviour
Our brains haven’t evolved as fast as the world around us — we’re emotional and impulsive creatures. In fact, 95% of purchasing decisions are made with emotion, which we then back up with logic — and it’s a similar process when making charitable donations.
Ultimately, to capture attention you need simple messages that appeal to emotions and psychology.
One way to do this is through “reducing the cognitive load” (taught by marketing expert Donald Miller). This means if your messages are hard to understand, you’ll lose your audience. Let’s dive into examples:
Here’s copy from the homepage of a major nature organization in the USA:
“Stepping Up Progress in this Defining Decade: Alongside communities, we’re urgently clearing obstacles and finding solutions to the climate and biodiversity crises.”
After reading this, I don’t understand what they do. If I don’t simply close the tab, I might continue to wonder about what this means — then I might also start wondering about how they spend their money. Are they effectively using donations?
Compared to TenTree:
“Every item plants 10 trees: For each tentree item sold, we plant trees worldwide that capture carbon, restore ecosystems, protect wildlife habitats, and create jobs in communities that need them most.”
This is clear and simple — I immediately understand what they are doing. If I want to help the environment, this seems like a solid place to put my money.
Clear communication doesn’t just inspire people to open their wallets — it reduces skepticism. When someone knows what you do, they are more likely to trust you.
You don’t need complex messaging for complex programs
Someone from the above nature organization might argue “well, tentree has simpler messaging because they have simpler programs. We’re not just planting trees, we’re doing so much more.”
And that’s true, but they can still improve their marketing.
Someone first encountering your organization doesn’t need to immediately understand all your programs (in fact, they can’t), so it’s okay to leave things out.
They need to know enough to feel emotional resonance and take action. You can fill them in on your impressive policy work later.
Even tentree does more than plant trees. They’re restoring kelp in Canada and funding bee hives in Kenya — but they aren’t splitting hairs about including all of that in their marketing.
It’s not always as extreme as tentree. More often it’s companies donating 1% or less of their profits to a charitable cause and marketing it as much as possible. A beauty company supporting mental health or a toy company supporting education. Ultimately, they have the same, clear message: you are helping the world by buying our products.
And this is how private companies out-fundraise us.
So how can the charitable sector respond?
I don’t think nature charities “lose” donations to tentree. I believe in an abundance of generosity. People can — and will — support causes in multiple ways if they are inspired to do so.
The reason someone supports tentree but doesn’t donate to the nature charity is because they don’t understand what the nature charity does — or that it exists.
So let’s step up our game.
We’re no longer the only peddlers of “using your money to do good”, which means we can no longer put marketing at the side of our desks (nor assign it to your board member’s kid who just graduated college.)
To be a worthy opponent of the for-profit sector, we must invest in marketing. The returns are tenfold — not just in revenue, but in creating trust and rallying fans who will support our charities for life.
In a marketplace that’s overrun with private companies trying to steal your playbook, effective marketing is critical to your mission’s survival.
