Should we pay someone to manage our Google Ad Grant?

Paying an agency to manage your Google Ad Grant is worth it when the extra donors they bring in, compared to doing it yourself, cover their fee. The ads are free either way. The question is whether their skill is worth more than the money plus the staff time you'd save. Compare both options below.

Worked example. Change any number to use yours.

You're editing Agency.

With 66 new donors, as promised

Year 1

−$1,770

Net cost

2 years

+$210

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 90 new donors in year one, or 64 over 2 years.

What it costs per month

Average gift from a new donor

How many months you'll try it

months

New donors per month they promise (optional)

Fill this in to get a verdict.

I don't know our numbers

Use figures from your donor database or spreadsheet.

Total given last year

Number of donors last year

Donors who gave in both of the last two years

Donors in the earlier year

Monthly donors (optional)

Average gift: $0 · Retention: 0 in 10

With 66 new donors, as promised

Year 1

−$1,770

Net cost

2 years

+$210

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 $500/month for 12 months, this needs to bring in $6,720 in new giving, about 90 new donors at your average gift. If 4 in 10 give again next year, about 64 new donors would pay it off within 2 years.

Total cost Total giving

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: $0.97
Worth up to: $518/month

Based on what they're promising, this is worth up to $518/month to your organization.

New donors per active month to break even: 6
Most you can spend to gain one donor: $105

Details

Break-even, first year: 90 donors ($6,720 ÷ $75 per donor)
Break-even, 2-year view: 64 donors ($6,720 ÷ $105 per donor)
Full cost: $6,720 = $0 setup + ($500 fee + $60 staff and volunteer time) × 12 months

Make the case to your board

Already started? Check in on progress

Months so far

New donors so far

Organization name (for the printout)

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Compare

	In-house	Agency
Full cost	$3,600	$6,720
Break-even donors	35	64
Net over the time frame	−$450	$210
Cost to raise $1	$1.14	$0.97
Staff hours per month	10	2
Pays off in month	Not in time frame	23
Mission equivalent	n/a	n/a

The calculator above is Agency. Use "Edit In-house instead" to switch.

Is It Worth It? for Nonprofits · Board summary

Board summary: Google Ad Grants

Inputs: $500/month, 12 months, setup $0, staff 2 hrs/month at $30, average gift $75, 4/10 give again, 2-year view.

Verdict: Worth it over time. Year 1: −$1,770. 2 years: $210.

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.

Break-even: 90 donors in year one, 64 over 2 years

What an Ad Grant manager does

An Ad Grant manager or agency sets up and runs your account: research, ads, landing page advice, tracking, monthly reports, and keeping the account within the program's rules. Some charge a flat monthly fee, some a setup fee plus monthly.

How to compare fairly

Doing it in-house isn't free. It costs staff hours, and a beginner may get fewer results. Hiring out costs a fee but usually still needs a little staff time for approvals and content.

The calculator below starts with two sample options. "In-house" is fixed, and the main calculator is "Agency." Change the numbers to match the quote you got and your own staff time.

Worked example

Hypothetical: in-house takes 10 staff hours a month and brings 3 new donors a month. An agency charges $500 a month, needs 2 staff hours, and promises 6 new donors a month. At a $75 average gift and 4 in 10 giving again, the compare table shows which nets more over 2 years.

What you're actually paying for

A monthly management fee, and sometimes a setup fee.
A little ongoing staff time for approvals and content.
Their experience with the program's rules and with nonprofit audiences.

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?
Can you manage our grant within the program's rules, and what happens if we fall out of compliance?
How many Ad Grant accounts do you manage, and can we talk to one?
Is there a minimum contract, and how do we leave?

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.

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

How much should an Ad Grant agency cost?

Enter what they promise in new donors per month. The calculator shows the most their service is worth to you each month.

Can an agency get us more than our grant allows?

No one can change Google's program limits. Be cautious of anyone who promises that.

What if we already tried in-house and it didn't work?

Enter your real results in the In-house column and compare. That's the fairest test of an agency's promise.

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.