Nonprofit email marketing: is it worth the cost?

Email is worth it for a nonprofit when the subscribers it builds turn into enough donors, over time, to cover the tool, any outside help, and staff time. Most people don't give the day they sign up. Enter how many subscribers you expect and how many out of 100 eventually give to see if it pays off.

Worked example. Change any number to use yours.

With 60 new donors, as promised

Year 1

−$2,520

Net cost

3 years

+$2,790

Comes out ahead

A loss in year one is normal for donor growth. Look at the 3-year view: returning donors pay it off.

Needs about 66 new donors in year one, or 36 over 3 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

What are you considering?

What does it cost? Setup fee

Staff hours per month

The hidden cost most nonprofits forget.Hourly staff cost

Volunteer hours / month

Value of a volunteer hour

Some organizations use a published annual value for volunteer time. Enter whatever yours uses.

Months before results start

months

SEO and Ad Grants often take a few months to get going.Amount paid by a grant (if any)

With 60 new donors, as promised

Year 1

−$2,520

Net cost

3 years

+$2,790

Comes out ahead

A loss in year one is normal for donor growth. Look at the 3-year view: returning donors pay it off.

At $150/month for 12 months, this needs to bring in $3,960 in new giving, about 66 new donors at your average gift. If 5 in 10 give again next year, about 36 new donors would pay it off within 3 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: $0.59
Worth up to: $383/month

Based on what they're promising, this is worth up to $383/month to your organization.

New donors per active month to break even: 3
Most you can spend to gain one donor: $113

Details

Break-even, first year: 66 donors ($3,960 ÷ $60 per donor)
Break-even, 3-year view: 36 donors ($3,960 ÷ $113 per donor)
Full cost: $3,960 = $0 setup + ($150 fee + $180 staff and volunteer time) × 12 months
Email sign-ups that become donors: about 36

Make the case to your board

Already started? Check in on progress

Months so far

New donors so far

Organization name (for the printout)

Was this useful? Tell Paul

Is It Worth It? for Nonprofits · Board summary

Board summary: Email marketing tool or help

Inputs: $150/month, 12 months, setup $0, staff 6 hrs/month at $30, average gift $60, 5/10 give again, 3-year view.

Verdict: Worth it over time. Year 1: −$2,520. 3 years: $2,790.

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: 66 donors in year one, 36 over 3 years

Why email matters for nonprofits

Email lets you talk to supporters directly, without paying for each message or hoping a social post gets seen. It's where you thank donors, tell stories about your mission, invite people to give again, and ask for monthly gifts.

The basics

Pick an email tool that fits your size. Add a simple sign-up form to every page of your site. Send a short welcome series to new subscribers that explains what you do and how to help. Then send regularly, with stories more often than asks.

Clean your list now and then. A smaller list of people who open your emails beats a big list of people who don't.

Counting sign-ups the right way

Most subscribers never give, and those who do often wait months. The calculator asks how many out of 100 subscribers eventually give, and how many months that takes, so you don't count gifts too early.

Worked example

Hypothetical: an email tool and help cost $150 a month plus 6 staff hours at $30. Over 12 months that's $3,960. The plan adds 1,200 subscribers, and 3 out of 100 eventually give, so about 36 donors. Plus 2 new donors a month directly from emails to past supporters.

What you're actually paying for

An email tool, usually priced by list size.
Staff time to write and send, or outside help to do it.
Design of templates and sign-up forms.
A welcome series and a few appeals each year.

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?
How will you grow our list, and how do you keep it healthy?
What does the welcome series say, and who writes it?

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 gifts that come from email links, and how many new subscribers give within a year.

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 many emails should a nonprofit send?

Enough to stay in touch without wearing people out. Many send a story or update regularly, with a few clear asks a year.

Is a paid email tool worth it for a small nonprofit?

Often yes once your list grows. Enter the tool cost and staff time to see how many donors it needs to bring in.

What if most subscribers never give?

That's normal. Volunteers and advocates matter too. Add their value in the "Other goals" section.

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.