Identity, Trust, and the New Rules of Nonprofit Marketing: Insights from Jon Lee of Lerma

Nonprofits are often the first to feel cultural change—not because they’re different from brands, but because the stakes are higher.

When people give their own money rather than spend it, their motivations are more revealing, their expectations more demanding, and their tolerance for misalignment far lower.

That’s why the shifts happening in nonprofit marketing today—around identity, trust, transparency, and belonging—offer an early signal for all marketers. In many ways, nonprofits are showing us where brand building itself is headed.

In a recent conversation with The Internationalist, Jon Lee, Principal and Head of Brand Leadership at multicultural agency Lerma, explained how donor behavior has evolved—and why the same forces reshaping charitable giving are now reshaping consumer loyalty, brand trust, and engagement across the for-profit world as well.

What’s striking is how closely these nonprofit dynamics mirror what for-profit brands are now experiencing.

Consumers, like donors, increasingly evaluate brands not just on product performance or price, but on what affiliation signals about them. Trust has become personal, not institutional. Transparency is no longer optional. And identity—once a “soft” consideration—has become central to loyalty.

In that sense, nonprofits are not an exception to modern marketing pressures; they are a preview. The same expectations donors bring to causes—values alignment, credibility, and authenticity—are now shaping how consumers choose the brands they buy, recommend, and stay loyal to.

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Giving as Self-Definition: A Shift in Donor Psychology

For decades, donors evaluated nonprofits based on mission, efficiency, and impact. That framework has shifted dramatically.

“Younger donors aren’t just funding a mission,” Jon explains. “They’re funding a statement about who they are.”

What began with Gen Z and Millennials has now expanded across age groups. Donors increasingly ask:

• Does this reflect my values?
• Does this say something about me?
• Does this express the community I belong to?

Nonprofits are no longer competing only on mission effectiveness — they are competing for identity alignment. Storytelling now must help donors see themselves in the narrative, not just the people served.

Trust Has Inverted: Scale No Longer Equals Credibility

Institutional trust has eroded in nearly every category, and nonprofits are no exception. Long-established organizations — the ones that once relied on scale as proof of stability — now face heightened skepticism.

“Large nonprofits don’t automatically get the benefit of the doubt anymore,” Jon says. “Smaller, niche, community-rooted organizations often feel more credible.”

Why?
Because donors trust what they can see, feel, and verify.

This has created a dramatic rise in community-based nonprofits and issue-specific organizations that speak with transparency, proximity, and authenticity. It’s also intensified competition for donor dollars during the largest intergenerational wealth transfer in history.

Radical Transparency: More Than Reporting

The phrase “radical transparency” came up throughout our conversation — but Jon’s definition is far more expansive than standard reporting or annual updates.

Radical transparency means:

• Showing where funds go and why
• Revealing both successes and failures
• Making internal values visible
• Offering real-time, human-scale storytelling
• Speaking with the voices of staff, beneficiaries, and communities — not institutional polish

It’s the difference between telling donors what happened and letting them see it for themselves.

The Generational Divide: Psychological, Not Demographic

Jon challenges conventional thinking about generations.

“Gen Z and Millennials are not just age cohorts — they’re people shaped by neurological development in a digital world.”

This digital conditioning influences:

• attention span
• skepticism thresholds
• urgency
• emotional bandwidth
• expectations for immediacy and proof

Younger donors are deeply connected to global issues yet often feel overwhelmed. They seek belonging and values alignment but are wary of big institutions. Meanwhile, older donors — particularly those 50+ — remain the financial backbone of nonprofit fundraising.

This creates a dual challenge:
How do nonprofits honor loyal long-term donors while cultivating emerging audiences with completely different psychological profiles?

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In this Trendsetters conversation, we discuss:

• The rise of identity-based giving

• How nonprofits can reach younger donors without alienating loyal givers

• Why brand partnerships may be more essential than ever

• The realities of nonprofit marketing after COVID and shifting government funding

• And what “Cultural Fluency” truly means for organizations that can’t afford to waste a penny

It’s a conversation about purpose, practice, and the future of nonprofit growth—told through the lens of someone who has spent decades guiding organizations through cultural change.

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The New Competitive Landscape: More Nonprofits, More Noise

The growth of:

• community-led organizations
• donor-advised funds
• new giving platforms
• influencer-driven activism

…has multiplied competition overnight.

Nonprofits must now differentiate not only from peers in their mission category but from entirely new formats of social engagement.

To break through, organizations must understand what their specific donors need to feel — not what the organization needs to fund.

Brand Partnerships: A Rising Opportunity—and Responsibility

Jon sees a strong uptick in nonprofit–for-profit partnerships, but many nonprofits are underequipped for the collaboration.

Partnerships demand:

• dedicated staffing
• cultural fluency
• clearly aligned values
• readiness to navigate risk

When done well, partnerships can amplify trust and expand donor audiences. When misaligned, they can erode credibility overnight.

Long-Term vs. Short-Term: The Fundraising Balancing Act

Nonprofits often prioritize urgent fundraising because needs are immediate. But Jon emphasizes that organizations must invest in long-term relationships, not just short-term revenue spikes.

“Listen before you invest. The audience will tell you where to put your dollars.”

Sustained connection requires consistency, clarity, and an understanding that storytelling is no longer just about the cause — it’s about the identity journey donors choose to take.

Conclusion: The Future of Nonprofit Growth Is Identity-Driven, Trust-Centric, and Culturally Informed

As nonprofits navigate a more complex, competitive, and culturally sensitive world, the organizations that will thrive are the ones that:

• speak to donor identity
• build trust through transparency
• embrace generational psychology
• navigate culture with confidence
• invest in long-term relationships
• and tell stories that honor both mission and belonging

Jon Lee’s reflections reveal a truth far broader than the nonprofit sector:

Marketing itself is entering a new era where trust, identity, and cultural fluency are the real differentiators.

ABOUT JON LEE

Jon Lee is a Principal at one of the most forward-thinking multicultural agencies in the U.S. Jon has led award-winning work for organizations including He Gets Us, The Salvation Army, Compassion International, OneHope, YoungLife, and many others.

His team’s approach is built on Cultural Fluency—an understanding that audiences today respond not only to messages, but to identity, values, and the deeper meaning of affiliation. Jon is also a provocative thinker about how generations are evolving. He argues that younger donors and consumers shouldn’t be defined by demographic clichés, but by neurological development shaped by constant digital exposure. That shift affects everything—from how they trust to how they give to how they expect nonprofits to show up in culture.

At the same time, the traditional donor base—particularly the 50+ community—remains the backbone of nonprofit fundraising. Jon’s work spans this full spectrum, helping organizations balance the urgency of fundraising, the long-term power of brand, and the cultural expectations of increasingly diverse audiences.