How nonprofits can budget better for marketing and fundraising this year

* Originally published on October 19, 2020. Updated for accuracy and comprehensiveness. * 

It hasn’t been easy for not-for-profits to budget for marketing and fundraising in such uncertain times these last few years. With the number of donors decreasing and their habits changing, how does one plan to spend smarter and have more impact? Creativity, flexibility, and carefully taking mitigated risks will help you navigate the “new normal”… again… and again!

Marketing Budget Basics for Not-for-profits

There are a few things that will automatically make or break a marketing budget. The first is – what you have in your toolbox to work with at the onset. There are no such things as miracles, so if you are missing the basics like a responsive website, brochures, active social media channels, updated mailing lists, a CRM, or even enough qualified staff members- no matter how much money you throw at marketing or fundraising you will end up missing the mark. Take an honest inventory of your organization’s assets before you get started.

The second thing that can make or break your budget is your timeline. If your goal is urgent, you will end up paying more to mobilize resources to get it done under a tight schedule. The better way to spend your money is by planning and allocating resources wisely. Giving your team enough time to find the resources available in your network, means you are more likely to have success and stay on budget.

Align your marketing budget and goals

Which comes first, your budget or your goal? Well, both as they feed into one another. You can have grand goals but not the budget to realistically achieve them. On the other hand, you can have a reasonable budget to spend but the goal is not worth the expense, in terms of the impact you wish to have.

The main goals of marketing for not-for-profits  can be broken down into the following categories:

Long & short-term goals:

• Increase engagement to maximize the ongoing support of your community

In order to be effective, the marketing plan for your not-for-profit should evaluate how you will distribute your budget into these main categories to best achieve your goals. That depends directly on how well defined your goals currently are. 

By analyzing the landscape you are operating in and knowing your current donors and community of support you will be able to customize the ideal budget for your goals. Here are some questions to ask to shape your marketing and fundraising strategies before deciding on how to spend: 

• How generous is your donor base?
• How well known is your cause or issue? 
• How popular is the method of outreach you’re using with your donors’ age segment? 

How to calculate your not-for-profit marketing budget

So how much should the average not-for-profit dedicate to marketing? In an ideal world, around 10-15% of the annual budget should be earmarked for quality spending on marketing. Most of us, however, don’t live in an ideal world, so it is safer to say we should align the amount we spend with the best return on investment (ROI) for the organization while keeping in mind both long-term and short-term goals.

According to Causevox, an online fundraising platform, for every $100 raised $35 or less should be spent on expenses.

How are you faring at breaking down your return on investment? Use the calculation below to have a better idea* of what is giving you the most bang for your buck.

Want some advice from our social sector experts on your spending?

*Don’t forget to include staff salary when calculating the expenses of a campaign or marketing initiative.  

How to make sure your marketing plan is a success

Increase the likelihood of a successful and on-budget marketing and fundraising strategy for your organization by:

• Taking the time to plan
• Testing the effectiveness of strategies before scaling them into major investments
• Being honest about your skillset and outsourcing tasks to experts so your team can be more effective with their time and energy
• Staying up to date on technology and trends, being forward thinking and updating your method of operations, if needed
• Sticking to the plan but being flexible and adjusting when needed, especially with your digital spend

Making a marketing and fundraising plan for your not-for-profit organization with someone who has experience in the sector can help you gauge where best to spend for smarter results. Bounce some ideas off of us! A reliable sounding board will help you identify elements that might be off-key in your marketing or fundraising plan. 

Remember, just as in a home renovation, going at it with a hammer alone will end up costing more to fix than calling in a specialist for good advice before starting the job.