How to build a nonprofit marketing plan that pays off
A nonprofit marketing plan starts with a goal in new donors, not in clicks. Pick a few channels, put a cost on each one including staff time, and check that each can bring in enough giving to pay for itself. The calculator does that check with your own numbers.
Worked example. Change any number to use yours.
With 116 new donors (the 3-year break-even)
Year 1
−$6,400
Net cost
3 years
+$96
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 180 new donors in year one, or 116 over 3 years.
I don't know our numbers
Use figures from your donor database or spreadsheet.
Average gift: $0 · Retention: 0 in 10
With 116 new donors (the 3-year break-even)
Year 1
−$6,400
Net cost
3 years
+$96
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 $1,500/month for 12 months, this needs to bring in $18,000 in new giving, about 180 new donors at your average gift. If 4 in 10 give again next year, about 116 new donors would pay it off within 3 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
- 10
- Most you can spend to gain one donor
- $156
How did we get this?
116 donors ÷ 12 active months
How did we get this?
That's what one new donor gives over 3 yrs, after fees. Year one only: $100.
Details
- Break-even, first year: 180 donors ($18,000 ÷ $100 per donor)
- Break-even, 3-year view: 116 donors ($18,000 ÷ $156 per donor)
- Full cost: $18,000 = $0 setup + ($1,500 fee + $0 staff and volunteer time) × 12 months
Get tailored next steps
Tell us your goal. We send it with your numbers above to an AI helper and show its suggestions here. Nothing is saved.
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Is It Worth It? for Nonprofits · Board summary
Board summary: Marketing agency
Inputs: $1,500/month, 12 months, setup $0, staff 0 hrs/month at $0, average gift $100, 4/10 give again, 3-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.
Start with a donor goal
Write down how many new donors you want this year and what they should give. Everything else in the plan works back from that number.
Also decide how long you can wait. Many channels lose money in year one and pay off once donors give again.
Pick channels you can run well
Two or three channels done well beat six done halfway. Common picks are email, search (SEO and Google Ad Grants), social ads, and monthly giving. Each has a guide on this site.
For each one, list the full cost: fees, ad spend, setup, and staff and volunteer hours.
Check each line of the budget
Run every channel through the calculator. It shows how many new donors that line must bring in to break even and the most you can spend to gain one donor. Cut or shrink lines that can't get there.
Set review dates
Agree on when you'll look at results for each channel, and what number means keep going. Use the check-in tool and the board deck to report back.
Worked example
Hypothetical: a plan spends $1,500 a month for 12 months on one channel. With a $100 average gift and 4 in 10 donors giving again, the calculator shows how many new donors it needs in year one and over 3 years.
What you're actually paying for
- Fees and ad budgets for each channel.
- Staff and volunteer time.
- Tools for email, forms, and tracking gifts.
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 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.
- Keep one row per channel: cost, new donors, and giving.
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
What should be in a nonprofit marketing plan?
A donor goal, the channels you'll use, the full cost of each, the number of new donors each needs to break even, and dates to review results.
How much should a nonprofit spend on marketing?
There's no single right percentage. Spend what each channel can pay back. The calculator shows the most you can spend to gain one donor.
How long before a marketing plan pays off?
It depends on how often your donors give again. The calculator shows the month each channel pays off with your numbers.
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.