What's in a name? The story of an NGO rebranding

On Sept. 16, Homeless International will be no more — at least in name. The U.K.-based charity will be announcing its new name, a significant milestone in the organization's years of soul searching and role redefining in an increasingly competitive industry, where small and midsize nongovernmental organizations are forced to innovate and find ways to remain not only financially afloat but also relevant. Some go for mergers, others agree to be absorbed by larger aid groups and yet others choose to rebrand. According to CEO Larry English, the organization has been undergoing an internal reform process for years, in part because of rising demand from local partners in developing countries to increase its investment portfolio to match their operational needs. Homeless International was initially established in 1984 as a trust fund to mark the International Year of Shelter for the Homeless in 1987. It was supposed to end its mandate that same year but high demand for its services, especially in developing countries, led to a new entity that was set up in 1989 under the same name — providing a mix of seed funding and capital finance to NGOs working in urban slums all over the world. Over time, though, partners became more “mature,” less interested in grants and more in seed capital that would allow them to access bank loans and thus make them less dependent on aid. Homeless International thus took on a new business model that while still allows it to provide seed funding, at least for three to five years, also makes it possible for its partners to access financial guarantees and low-interest loans. "Now donor funds are limited and you can't build a model that is based on donor funding," English told Devex. However, this shift meant that the charity can no longer rely on a limited set of its funding sources, like the U.K. Department for International Development or Sweden’s aid agency SIDA — two of its main donors. It must seek other types of sources, like development financial institutions, which already offer relatively big money and seem more fit for the type of investments Homeless International would like to attract. With this consideration in mind, Homeless International decided it needed to make a drastic change: rebrand to better reflect outside the work that it does and the goal it aims to accomplish. It could have opted for a merger but it was hard to find a suitable partner in line with the organization’s mission statement. “Well, the issue is 'who do you merge with?' It's not as if there are hundreds of [organizations working] in the urban slums and upgrading [social housing],” English said. “I [have] worked in the sector for over 25 years; there are a lot of people working in slums, but whether they are actually changing the slum itself is [the question].” English was given strict orders not to reveal the charity's new name before the marked date, but he told Devex it will stamp out confusion over Homeless International’s activities for over two decades. Unlike other aid groups such as Save the Children or Sightsavers, the name Homeless International doesn't easily explain the organization’s purpose, focus sector or the development challenge it wants to address — which is actually building the capacity of local NGOs working in slums so they can build the market and create the services needed for these urban poor communities to, eventually, lift themselves out of poverty. That’s a lot to explain in just one phrase, and it's intriguing how the charity will be able to capture that in one word or two. English argues that finding a new name was necessary, and a process that has taken years of brainstorming, long hours of deliberation and a lot of internal questioning. The confusion over the current name, he said, has had a negative impact over Homeless International’s fundraising and outreach to grass-roots partners. Some donors balk at the name itself — a clear sign that they view that as enough to decide whether to engage with an aid group or not. Meanwhile, many local NGOs are not aware the organization can be a source of seed capital for them, making it harder for them to become partners. "It's a charitable-sounding name. And it means people don't necessarily see Homeless International as an organization that's providing capacity and technical funding," the CEO explained. Changing the name and rebranding, however, doesn't mean a more substantial shift in the way the organization operates. The charity will still provide seed funding, guarantees and loans, while building houses or community engagement will remain the responsibility of developing country partners. But there will be a difference in scale and reach, or at least that's the plan. English noted the new name will reflect years of changes from within, but the real challenge will happen immediately after, when Homeless International actually tests whether raising funds is easier or not post-rebranding. And if the answer is yes, at that moment the organization must make sure it has the necessary skill sets and systems to manage the potentially larger amount of money and be able to handle the risk that comes with it. "So it becomes a lot more our responsibility and our systems have to become more rigorous," the CEO said. "When you are in a grants regime, you have to make sure that the fund eventually reaches the targets — the people or the particular issues you're wishing to address. So when you're essentially saying we're investing and we would like our money back, you have to make sure you have the ability to return the funds." He added: "Those are the challenges going forward, but they are actually good challenges.” In the long term, English sees Homeless International beefing up its network outside the U.K., in part to keep operational costs at a minimum. By building its partners' skills and capacity now, it hopes to be able to facilitate the sharing of knowledge and skills at country and regional level. For example, a local NGO seeking help on project management may be able to go to a partner in Tanzania, or the charity can help connect them for that purpose. "We feel there's a very strong south-south, or peer organization building capability, and what we do is sort of facilitate it, or oil it," English said, but he was quick to add that all these are "in front of us." Check out more insights and analysis provided to hundreds of Executive Members worldwide, and subscribe to the Development Insider to receive the latest news, trends and policies that influence your organization.