How To Spend Your Nonprofit’s Marketing Budget

Disclaimer: We’re not going to tell you how to spend your nonprofit marketing budget.

For too many nonprofits, marketing is an afterthought. I shouldn’t be.

Marketing is just as critical for nonprofits as it is for for-profit businesses (it’s one of the reasons we think nonprofits need to think like businesses). It’s what helps you get the word out and drive donations so that you can keep doing what you do. But to market properly, you need to know how to set a budget.

Now, if you’re looking for insight into what percentage of your nonprofit marketing budget to spend on what channels, you won’t find it here. 

As much as we’d love to give you a clear breakdown to guide your nonprofit marketing budgeting efforts – and we really would love to – those kinds of breakdowns just don’t exist. 

“That’s a lie!” you say, “I’ve seen plenty of marketing budget breakdowns online.”  

You’re right, they do exist. But how could they possibly be accurate or apply to every nonprofit organization out there? There are too many variables involved, like what stage your nonprofit is in, your mission, challenges, and goals, and who you’re trying to reach. 

There’s just no one-size-fits-all approach that can apply to a nonprofit marketing strategy. It’s true for for-profit businesses, and it’s equally true for nonprofits. 

What we can give you is a step-by-step guide that will help you determine how to best spend your nonprofit marketing budget. 

That’s what you can expect to find in this article: insight into how to set goals, choose marketing channels, and allocate your resources appropriately. 

Step 1: Start With Data, Not Assumptions

You can’t make smart marketing decisions if you’re just guessing.

Before you spend a single penny of your nonprofit marketing budget, you’ve got to start with research. Find out where your audience hangs out, which channels actually reach them, and what’s working for nonprofits like yours. When you know who you’re talking to and how to best reach them, you’ll have a much sharper sense of where your marketing dollars will make the biggest impact. 

When looking for inspiration from other nonprofits, make sure you’re comparing apples to apples. If you’re a small, local nonprofit, for example, studying a global organization like WWF won’t do you much good. They’ve got different challenges and a totally different set of resources. 

Instead, look to organizations similar in size and scope. For example, Whole Whale’s 2024 Nonprofit Advertising Benchmark Study found that smaller nonprofits tend to spend more of their marketing budget on advertising compared to larger organizations with higher revenue. As the study notes, this “indicates the importance of advertising budget allocation in the early stages of organizational development.”

It makes sense when you think about it. A well-known organization like WWF is already a household name. They don’t need to invest heavily in getting the word out. But if your nonprofit is still growing, you’ll likely need to dedicate a larger share of your budget to getting your name out there.

Bottom line: whether you’re building out a new marketing strategy or tweaking what you’ve already got, data should always lead the way. Lean on your website analytics, email engagement reports, and donor insights to see what’s working and what’s not. The more you ground your strategy in real numbers, the better equipped you’ll be to budget smartly and make every dollar count.

Step 2: Identify Your Biggest Challenges

Once, you’ve looked at the data, it’s time to ask yourself: 

What are we actually trying to solve with our marketing?

The answer will be unique to your organization and you need to get clear on it. Start by pinpointing the biggest friction points in your communication and fundraising efforts.

• Are you struggling to attract new donors?
• Losing current supporters or members?
• Need to boost event attendance or community engagement?
• Looking to grow brand awareness, or deepen impact?
• Are you facing any fundraising challenges?

Let the data guide you on the best ways to tackle them. Resources like Double the Donation’s Nonprofit Fundraising Statistics can give you extra insight to back up your decisions.

For example, if donor retention is an issue, it might be smart to invest more in email marketing since 48% of donors say email is “most likely to keep them engaged and inspire repeat donations.” 

Having trouble attracting new donors? Social media is most effective at inspiring donors (32%) and might be where you should concentrate your efforts.

Remember, you need to dig deeper when you’re optimizing your marketing budget. You’re not deciding where to spend, you’re deciding how to solve problems. When you focus your dollars on your most pressing challenges, you’ll start seeing real results, not just vanity metrics. And that’s what moves your mission forward.

Step 3: Set SMART Goals (And Tie Dollars To Outcomes)

“Raise more money” or “do more community outreach” are great aspirations, but they won’t help you help you figure out where to spend your marketing dollars. 

Instead, get specific. Set SMART goals that are Specific, Measurable, Achievable, Relevant, and Time-bound. When you know exactly what you’re aiming for, it’s a lot easier to decide where your budget should go. 

Here’s what a SMART goal looks like in action: 

• Increase email subscribers by 25% in the next 6 months;
• Get 500 people to register for your annual fundraiser;
• Raise $50,000 through your year-end campaign.

SMART goals turn big dreams into clear targets. And clear targets make it easier to connect every dollar you spend to real, measurable outcomes. 

They also act as your guardrails. If a marketing tactic doesn’t get you closer to reaching your goals, it’s probably not the best use of your budget right now. This keeps you focused on what matters most and helps you resist the temptation to chase every new idea that pops up along the way. 

Step 4: Get Clear on Your Message

Effective marketing starts with a strong story.

Stories are what people connect with. They’re what get people to stop scrolling, pay attention, and ultimately care about your cause. If you want to get people on board with donating, attending, and spreading the word, you need to get your story straight. 

And it’s worth investing in. 

BSC Interactive suggests allocating 60% of your marketing budget on your story (your messaging, nonprofit branding/logo, and website are all grouped in this category). That’s a big slice, but depending on where your organization is, it might make perfect sense. 

Your story is the foundation of every campaign, every post, and every donor appeal. It shapes how people see you, understand your mission, and decide whether to get involved. Investing in clear messaging and a polished, mission-driven website will make every other marketing effort work that much harder.

That said, be honest about where you’re starting from (remember Step 1!). If your story is already strong and your website is working for you, you probably don’t need to spend nearly as much here. But if your message is muddy or your online presence is weak, this is where your budget can make a real difference.

Step 5: Choose Marketing Channels Based On What Works (And Test For Yourself)

As we mentioned at the beginning of this article, there’s no magic marketing formula like “spend 20% on email and 10% on email marketing.” 

Your goals, your audience, your capacity, and your overall budget are what should drive your channel choices. And while there’s plenty of data to help guide you at the end of the day, you need to test and figure out what works best for your organization. 

That means looking at what’s already working, staying flexible, and being willing to adjust along the way. Data can point you in the right direction — but real-world testing is what locks in your strategy.

Now, having said all that, if you’re working with a really tight budget, email and social media are both powerhouses when it comes to both donor inspiration and retention. If they align with your strategy and audience, they can be smart places to start or double down.

Step 6: Set Aside Budget For Testing And Optimization

Chances are you won’t get things right your first time. And that’s totally fine! It’s part of the game when it comes to marketing. But it does mean you need to build some flexibility into your budget for testing along the way. 

No matter how much data you look at and how well-researched your strategy is, you’ll only know if it works when you put it into action. Performing initial testing will let you see what works and do more of it after optimizing.

A/B test your emails. Try different versions of ads in your paid campaigns. Watch closely to see what kinds of content actually drive donations or signups. Use free tools like Google Analytics 4 and Meta Ads Manager to track performance and spot what’s hitting the mark.  

Set aside time and money for testing and continuous improvement. A well-optimized $1000 campaign can outperform a $5000 campaign with no testing! Small adjustments can lead to major gains but you need to give yourself the room to make them. 

Step 7: Tap Into In-House Talent

We know that things are usually tight for nonprofits. 

As much as you may want to hire outside marketing agencies or content creators, sometimes the money just isn’t there. If that’s the case, why not look to your team to see who can contribute to your marketing efforts?

Your team members are probably already the most passionate about your cause, why not use them as storytellers? 

Need content for SEO? 

Encourage team members to write blog posts about their experience, answer common questions, or explain your nonprofit’s impact in their own words. First-hand storytelling creates the kind of authentic content AI tools like ChatGPT just can’t replicate. 

Want to boost your social media presence? 

See who’s willing to star in short videos or capture behind-the-scenes moments for Instagram Reels or TikToks. Real faces and real voices build real connection.

Looking for strong email content? 

Volunteer highlights, staff spotlights, and board member quotes can add warmth and authenticity to your newsletters and donor outreach.

Your people are your brand. Tapping into their voices helps you save money but more importantly, builds deeper trust. 

Step 8: Don’t Forget To Invest In Tools & People

If you want to run your nonprofit marketing strategy properly, you’re going to have to invest in tools, services, and training. You’ll need to factor in these costs into your marketing budget form the start. 

Just like your budget, there’s no “perfect” marketing tech stack, just the right one for your organization. You’ll need to do some research to decide which are the best tools for you and your team and your budget

At the very least, some tools you’ll want to have at your disposal are:

• An email marketing platform: Even if you’re just sending out a monthly newsletter, you’ll need an email marketing platform, like Mailchimp, to manage your contact list and build out your emails. 
• A content management system (CMS): If SEO is a part of the plan (and it should be), you’ll need a CMS to manage and organize all the content you’re posting to your blog. 
• A website: There’s no getting around it, you need a website. That means paying for design, development, and hosting, or using a drag-and-drop website builder service. 
• Analytics: To track your efforts and monitor the performance of your campaigns, you’ll need some kind of analytics software to know what’s working and what’s not.

Other nice-to-have tools include:

• Design software: You don’t need an Adobe subscription, cheaper alternatives like Canva offer tons of easy-to-use templates to help you create social media posts and graphics on a budget. 
• Project management: Free versions of Asana, ClickUp, or Trello can help keep your marketing projects organized and on track. 
• A donor management system: Managing a growing donor list is probably one of the best problems you could ask for! Tools like Bloomerang and DonorPerfect have affordable plans that can help you manage donors and achieve your fundraising goals.

Whenever possible, look for free tools and nonprofit discounts to lighten the load. Many organizations like Microsoft and Google, offer grants and discounts for nonprofits which you should take advantage of. If you haven’t already applied for Google Ad Grants, it’s an incredible resource to earn up to $10,000/month in free search advertising. 

Related: Will Your Nonprofit Benefit From A Google Grant?

Finally, don’t forget to invest in your team. Basic copywriting, email marketing, and design skills can go a long way in reducing your reliance on your outside service providers. 

Your Budget Should Reflect Your Mission

The best marketing budget is the one that reflects your nonprofit. 

Remember, it’s not necessarily about spending a lot, but instead spending smart. As long as you lead with data and strategy, and continuously optimize your efforts, you’ll be able to figure out exactly how to spend your nonprofit marketing budget for the best results. 

Don’t be afraid to test new channels and approaches, start small and scale up when you start seeing success.

If you need help deciding which channels and strategies make the most sense for your nonprofit, we can help! Schedule a free digital marketing audit to discuss all things related to your nonprofit marketing and how you can get the best bang for your buck.