Are you a nonprofit that wants to do more good in the world? Do you worry that spending money on marketing takes away from your mission? I get it.
I once worked with a small animal rescue that put every dollar they had into saving pets. They didn’t spend a dime on marketing. When I asked why, their director said, “Every dollar we spend telling people about us is one less dollar saving animals.” Six months later, after creating a small but mighty marketing budget, their donations doubled. They saved twice as many animals that year.
Let me show you how to create a marketing budget that doesn’t take away from your mission—it multiplies it.
Why Marketing Budgets Matter for Nonprofits
Think of marketing like the roots of a tree. You can’t see them, but they bring in what the tree needs to grow. Without strong roots, even the most beautiful tree will die.
Your nonprofit needs marketing to:
- Bring in new donors
- Find more volunteers
- Tell people about your work
- Show the good you’re doing
- Stand out in a busy world
One volunteer at a food bank told me, “We thought marketing was just fluff. Now we know it’s what fills our donation bins.”
The Right Mindset: Marketing as Mission Support
Stop thinking of your marketing budget as money taken away from your mission. Start seeing it as money that makes your mission possible.
Marketing isn’t just about fancy ads or pretty websites. It’s about:
- Telling your story
- Finding people who care about your cause
- Building trust with donors
- Making it easy for people to help
Think about it like this: If no one knows about your nonprofit, how can they help? If people don’t understand what you do, why would they give you money?
Typical Nonprofit Marketing Budget Allocations
Most healthy nonprofits spend between 5-15% of their total budget on marketing. That might sound like a lot if you’re used to spending zero! But even starting with just 3-5% can make a big difference.
Here’s what other nonprofits are spending:
- Small nonprofits (under $1 million annual budget): 7-10%
- Medium nonprofits ($1-5 million): 5-7%
- Large nonprofits (over $5 million): 2-5%
Why do smaller nonprofits need to spend more? Because you’re still building awareness. The bigger you get, the more people already know who you are.
5 Steps to Create Your Nonprofit Marketing Budget
Step 1: Know Your Goals
What do you want marketing to do for you? Be specific:
- Add 200 new donors this year
- Increase average donation size by 25%
- Get 50 new volunteers
- Boost event attendance by 30%
Your goals will shape your budget. Different goals need different marketing tools.
Step 2: List Your Marketing Channels
Where will you connect with people? Options include:
- Your website
- Email newsletters
- Social media
- Direct mail
- Google Ads
- Community events
- Print materials
Don’t try to be everywhere at once! Pick 2-3 channels where your ideal supporters hang out.
Step 3: Price Each Marketing Activity
Make a list of what each marketing activity will cost. Include things like:
- Website hosting ($15-30/month)
- Email marketing tool ($20-100/month)
- Social media tools ($0-50/month)
- Design help ($100-500 per project)
- Print materials ($200-1,000)
- Google Ad grants (free for nonprofits!)
- Paid ads ($100-1,000/month)
Add these up to get your base budget.
Step 4: Plan for One-Time Projects
Beyond your regular marketing, you might need:
- A new website ($1,000-10,000)
- A rebrand ($2,500-7,500)
- A special campaign ($500-5,000)
- Training for your team ($250-1,000)
Spread these costs over 12-24 months in your budget.
Step 5: Track and Adjust
The best marketing budgets change over time. Every three months:
- Check what’s working
- Cut what’s not working
- Put more money into what’s getting results
- Try one new thing
A smart budget isn’t set in stone—it evolves as you learn.
How to Maximize ROI from Your Marketing Budget
Want to make each dollar work harder? Try these tips:
- Use free tools first: Google for Nonprofits, Canva free, social media
- Focus on keeping donors: It costs 5x more to get a new donor than keep one
- Ask for in-kind donations: Many marketing pros will donate their services
- Train volunteers: Find supporters with marketing skills
- Create content once, use it many places: Turn one story into an email, social post, blog, and newsletter article
Remember what happened with a homeless shelter I worked with? They spent $500 on better donor emails and raised an extra $7,000. That’s a 14x return!
Common Marketing Budget Mistakes Nonprofits Make
Avoid these budget blunders:
- Spending nothing: Even a tiny budget is better than zero
- Copying for-profit companies: Your goals are different
- Spreading too thin: Better to do one channel well than five poorly
- Not measuring results: If you don’t track it, you can’t improve it
- Stopping and starting: Consistent marketing works better than spurts
Ready to Create Your Marketing Budget?
Creating a marketing budget isn’t about taking money away from your mission. It’s about finding the fuel that makes your mission go further.
Start small if you need to. Even 3% of your overall budget can make a difference. Track your results, adjust as you go, and watch your impact grow.
Need help creating your nonprofit marketing budget? Download our free Nonprofit Marketing Budget Template or schedule a free 30-minute chat to talk through your specific needs.
Note: If you run a for-profit business instead of a nonprofit, check out our guide on marketing budget planning for businesses template for strategies tailored to organization growth.
Remember: marketing isn’t just an expense—it’s an investment in your mission.
Winged Gods Creation helps nonprofits and small businesses create marketing that works. We’ve been helping organizations tell their stories for nearly 30 years. Learn more about creating a budget for your organization, contact us today
