Facebook ads for nonprofits: are they worth the money?
Facebook and Instagram ads are worth it for a nonprofit when the donors, sign-ups, and volunteers they bring in are worth more than the ad budget, any management fee, and staff time. Ads can reach new people quickly, but they stop the day you stop paying. Enter your budget and donor numbers to check.
Worked example. Change any number to use yours.
With 76 new donors, as promised
Year 1
−$1,260
Net cost
2 years
+$108
Comes out ahead
A loss in year one is normal for donor growth. Look at the 2-year view: returning donors pay it off.
Needs about 97 new donors in year one, or 75 over 2 years.
I don't know our numbers
Use figures from your donor database or spreadsheet.
Average gift: $0 · Retention: 0 in 10
With 76 new donors, as promised
Year 1
−$1,260
Net cost
2 years
+$108
Comes out ahead
A loss in year one is normal for donor growth. Look at the 2-year view: returning donors pay it off.
At $800/month for 6 months, this needs to bring in $5,820 in new giving, about 97 new donors at your average gift. If 3 in 10 give again next year, about 75 new donors would pay it off within 2 years.
Worth it over time
Year one shows a net cost, but returning donors pay it off. This is normal for donor growth.
- Cost to raise $1
- $0.98
- Worth up to
- $818/month
How did we get this?
$5,820 cost ÷ $5,928 giving over 2 yrs
How did we get this?
(76 donors × $78 − $300 setup) ÷ 6 months − $120 staff time
Based on what they're promising, this is worth up to $818/month to your organization.
- New donors per active month to break even
- 13
- Most you can spend to gain one donor
- $78
How did we get this?
75 donors ÷ 6 active months
How did we get this?
That's what one new donor gives over 2 yrs, after fees. Year one only: $60.
Details
- Break-even, first year: 97 donors ($5,820 ÷ $60 per donor)
- Break-even, 2-year view: 75 donors ($5,820 ÷ $78 per donor)
- Full cost: $5,820 = $300 setup + ($800 fee + $120 staff and volunteer time) × 6 months
- Email sign-ups that become donors: about 16
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Is It Worth It? for Nonprofits · Board summary
Board summary: Facebook / Instagram ads
Inputs: $800/month, 6 months, setup $300, staff 4 hrs/month at $30, average gift $60, 3/10 give again, 2-year view.
Verdict: Worth it over time. Year 1: −$1,260. 2 years: $108.
Questions we asked the vendor: Do you understand donor journeys and recurring giving? Who owns our donor data, website, and ad accounts if we part ways? How will you report new donors? When should we expect results, and what's the plan if they don't come?
Estimates for planning only. Not financial or tax advice.
How nonprofit social ads work
You pay to show posts to people who don't follow you yet, chosen by location, interests, or similarity to your current supporters. You set a budget, and the platform shows your ad until the budget is spent.
For nonprofits, the most common goals are donations, email sign-ups, event sign-ups, and volunteer recruitment. Asking strangers for a gift right away is hard. Asking them to sign up first, then inviting them to give later, often works better.
What makes an ad worth running
A clear, specific story. A simple photo or short video from your work. One action, like "Join 200 neighbors who give monthly." A landing page that loads fast on a phone and asks for little.
The budget is only part of the cost
Someone has to make the ads, watch results, and answer comments. If an agency runs them, add their fee. The calculator includes ad budget, setup, and staff time so the comparison is fair.
Worked example
Hypothetical: $800 a month in ads plus a $300 setup and 4 staff hours at $30, for 6 months. The ads bring 10 new donors a month at a $60 average gift, plus 400 email sign-ups, 4 out of 100 of whom give later. With 3 in 10 giving again, the calculator shows whether 2 years of giving covers it.
What you're actually paying for
- The ad budget itself, paid to the platform.
- Making the ads: photos, video, and words.
- Management: setting up, testing, and adjusting.
- A landing page or donation form built for phones.
Questions to ask vendors
- Do you understand donor journeys and recurring giving?
- Who owns our donor data, website, and ad accounts if we part ways?
- How will you report new donors, not just traffic or impressions?
- When should we expect results, and what's the plan if they don't come?
- Will we own the ad account and all the audience data?
- Are you counting donors, or just clicks and likes?
How to tell if it's working
- Ask "How did you hear about us?" on your donation form.
- Use a separate link for each channel so gifts can be traced back.
- Count new donors from this channel every month, not just clicks or visits.
- Review monthly with the check-in tool on this page.
- Compare the cost per new donor with the most you can spend to gain one donor.
How we calculate
- Full cost = setup fee + (monthly fee + staff hours × hourly cost + volunteer hours × hourly value) × months.
- Value of one new donor over N years = (first gift + later gift × (r + r² + ... + r^(N−1))) × gifts per year × (1 − processing fee) − thank-you cost, where r is how many out of 10 give again, divided by 10.
- Monthly donors are valued at monthly gift × 12 for each year they keep giving.
- Break-even new donors = full cost (minus the value of other goals you enter) ÷ value of one new donor, rounded up.
- Cost to raise $1 = full cost ÷ giving over the time frame.
- Most it's worth paying per month = (promised donors × donor value − setup fee) ÷ months − staff time per month.
Questions people ask
Do Facebook ads work for nonprofits?
They can, especially for sign-ups and events. Whether they're worth it depends on your numbers. Enter them in the calculator.
How much should a nonprofit spend on Facebook ads?
Start small and test. The calculator shows the most you can spend to gain one donor, which is a good ceiling.
Should we ask for donations or sign-ups?
Many organizations find sign-ups cheaper and turn some into donors later. Use the email section of the calculator to count those.
About the builder
Built by Paul Watley
Paul is the Director of SEO at Tandem Theory in Dallas, Texas. He builds websites and helps them get found through search and digital marketing. He is originally from Nebraska and now lives in Dallas with his wife, their three kids, and Sunny, their dog.
He built this free tool because nonprofits get the same sales pitches businesses do, with less money and less time to check the math. Put in your own numbers and decide for yourself.