Google Ad Grants: is it worth the time to manage?
Google Ad Grants gives eligible nonprofits free search ad credit. The ads cost nothing, but running them well takes staff time or a paid manager. It's worth it when the donors, volunteers, and sign-ups the ads bring in are worth more than that time. Enter your hours below to check.
Worked example. Change any number to use yours.
With 35 new donors (the 2-year break-even)
Year 1
−$975
Net cost
2 years
+$75
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 48 new donors in year one, or 35 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 35 new donors (the 2-year break-even)
Year 1
−$975
Net cost
2 years
+$75
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 $0/month for 12 months, this needs to bring in $3,600 in new giving, about 48 new donors at your average gift. If 4 in 10 give again next year, about 35 new donors would pay it off within 2 years.
Chart assumes you get exactly the break-even number of donors. Enter what they promised to see their version.
- New donors per active month to break even
- 4
- Most you can spend to gain one donor
- $105
How did we get this?
35 donors ÷ 10 active months
How did we get this?
That's what one new donor gives over 2 yrs, after fees. Year one only: $75.
Details
- Break-even, first year: 48 donors ($3,600 ÷ $75 per donor)
- Break-even, 2-year view: 35 donors ($3,600 ÷ $105 per donor)
- Full cost: $3,600 = $0 setup + ($0 fee + $300 staff and volunteer time) × 12 months
Make the case to your board
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Is It Worth It? for Nonprofits · Board summary
Board summary: Google Ad Grants
Inputs: $0/month, 12 months, setup $0, staff 10 hrs/month at $30, average gift $75, 4/10 give again, 2-year view.
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.
What Google Ad Grants is
Google Ad Grants is a program from Google that gives eligible nonprofits in-kind credit to run text ads in Google search results. Your ads can show when people search for your cause, your services, or ways to volunteer.
The program has eligibility rules, spending limits, and account requirements that Google updates from time to time. We don't list them here because they change. Check Google's official page for the current details.
The real cost is time
The ad credit is free. The work is not. Someone has to choose keywords, write ads, build or improve landing pages, track results, and keep the account within the program's rules. A neglected account can be suspended.
That's why the calculator for this page starts with staff hours instead of a monthly fee. If you're thinking about paying someone to manage it, see our page on Ad Grant agencies.
Where Ad Grants tends to help
Ad Grants often works well for volunteer recruitment, event and program awareness, and email sign-ups, with donations following later. If that's true for you, fill in the "Other goals" section so the calculator counts more than first-year gifts.
For current eligibility and program rules, see Google's official Ad Grants page.
Worked example
Hypothetical: a staff member spends 10 hours a month at $30 an hour, so $300 a month, for 12 months. Results start after month 2. At a $75 average gift and 4 in 10 giving again, each donor is worth about $105 over 2 years, so it needs about 35 new donors to pay for the staff time.
What you're actually paying for
- Staff or volunteer hours to set up and run the account.
- Landing pages that turn ad clicks into gifts, sign-ups, or volunteer forms.
- Tracking so you can see which ads lead to real results.
- Optional: a paid manager or agency, plus any tool fees.
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 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.
- Track conversions in the ad account: donations, sign-ups, and volunteer forms.
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
If the ads are free, why would it not be worth it?
Because staff time is real money. If the ads don't bring in enough donors or volunteers to justify the hours, that time might do more good elsewhere.
Should we manage Ad Grants ourselves or hire someone?
Compare both. Our Ad Grant agency page has a side-by-side calculator for in-house time versus an agency fee.
Where do we find the current rules?
On Google's official Ad Grants page. Rules change, so we don't repeat them here.
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.