Marketing and advertising content is everywhere, but how often do you see or hear a message encouraging people to support a charitable cause rather than selling a product or service?

You may notice examples of cause marketing, such as the Ford Warriors in Pink initiative to support the fight against breast cancer. But rarely will you see campaigns for specific nonprofit organizations designed to increase awareness of a need and drive fundraising.

A 2009 article in the Harvard Business Review estimated that for every dollar spent on marketing charitable causes, $384 is spent marketing something for-profit companies.

If the idea of allocating nonprofit budget dollars to marketing gives you pause, you’re not alone. After all, every dollar counts when it comes to serving those in need. But marketing can help nonprofit organizations generate MORE dollars to better serve their constituents by raising awareness, telling a compelling story and letting people know how they can help.

Why Nonprofits Don’t Spend Money on Marketing

The phrase “nonprofit marketing” can carry a negative connotation, largely because the two words seem to be at odds with each other.

Marketing – the activity of promoting or selling products or services – is fundamentally aimed at generating financial gain, i.e. profit. Nonprofit work – not conducted for the purpose of making a profit – seems to stand in contrast to marketing.

Some donors may be less likely to contribute to a nonprofit organization if donor funds are used for marketing and other operational expenses instead of going directly to programming or services. Nonprofits may worry about public scrutiny and accusations of misusing donor funds.

Since many nonprofits are stretched thin to begin with, daily activities are focused more on addressing immediate needs than planning and growth strategies. Sound familiar?

Why Nonprofits Should Spend Money on Marketing

For-profit entities use marketing and advertising to drive revenue. If Apple doesn’t market the new iPhone, the company might sell a few to enthusiasts, but revenue would be nowhere near the $199.3 billion that came from iPhone sales in 2023.

The same principle applies to your nonprofit organization. Your team, donors, volunteers and supporters understand your mission, but the general public may not be as informed, which can make raising money more difficult.

Fundraising can be unpredictable, too, so identifying new revenue sources is essential to sustaining and growing your organization. Consider these numbers:

• According to Giving USA Foundation, total giving declined -3.4% in current dollars to $499.33 billion (-10.5% adjusted for inflation) and individual giving declined by -6.4%
  (-13.4% adjusted for inflation).
• The number of nonprofit organizations in the U.S has grown at an annual rate of 4% over the last 20 years.
• The Association of Fundraising Professionals reported a record-low total donor retention rate of just 6% in 2022.

So, how does marketing address those challenges?

An effective nonprofit marketing strategy can augment existing fundraising efforts by increasing awareness and connecting your organization with a wider donor base. That can generate more revenue for developing programs, providing services, and covering operational expenses, such as payroll and facility improvements.

Nonprofit marketing can also enhance brand visibility, opening doors to new corporate and government funding sources and encouraging mission-related legislative change.

Getting Started on Nonprofit Marketing Initiatives

It’s not true that nonprofit marketing is, by definition, wasteful. These are some of the actions that will be key to your success.

• Help donors understand how important marketing is to the future of the organization and ask for unrestricted gifts that can be used to support marketing initiatives.
• Research grant funding opportunities designed to support nonprofit marketing initiatives.
• Work with a nonprofit marketing professional to identify key performance metrics and develop a strategy that maximizes ROI.
• Maintain transparency with donors, supporters and constituents by reporting results on a quarterly basis and producing an annual report that recaps marketing activities and results.

Looking for Nonprofit Marketing Services? MadAveCollective Can Help!

Our comprehensive marketing services are customized to meet your unique needs. Whether you’re looking for help with a specific campaign or a full-scale brand overhaul, our expert team will get the job done. Call 419-725-6500 or send an email to schedule a meeting.