How Much Do Nonprofits Spend on Marketing?
If you lead or manage a nonprofit, one of the toughest questions is: how much should we spend on marketing? From digital campaigns to a website for marketing, social media (like Instagram for nonprofits), paid advertising, and content creation — budget decisions matter. And yet: many nonprofits struggle with benchmarks, decision-making, and aligning marketing spend with mission goals.
What the Data Say: Typical Nonprofit Marketing Spend
Here are some of the key benchmarks and case-study numbers:
A 2024 study of nonprofit advertising found a median ad expense of about $12,950 annually for organisations that dedicated funds to advertising. That represented approximately 0.66% of total expenses on average. wholewhale.com
In another study of U.S. 501(c)(3) organisations with revenues between $1 M and $10 M, roughly 60% of nonprofits spent on advertising/promotion, with a median annual spend of around $12,067. Kindful
Budgeting guidance sources for nonprofits say that a realistic benchmark is to allocate 5%–15% of the total operating budget to marketing/communications. For smaller organisations (with modest budgets), the proportion might need to be toward the higher end of that band. Big Sea+2Hyperakt+2
On digital marketing specifically, A source indicates that 42% of nonprofit companies spend between $500 and $5,000 per month on marketing. WebFX
Regarding social media ads/boosts: In a survey of nonprofit communicators, 34% reported a social-media ads budget up to $1,000, another 12% up to $100. Nonprofit Marketing Guide (NPMG)
These numbers show two things: first, many nonprofits spend relatively modest sums on marketing; second, there’s a wide variation depending on size, mission, revenue, and marketing maturity.
Why the Variation? Key Factors That Influence Marketing Spend
Understanding why budgets vary helps you set the right target for your nonprofit.
1. Organisation Size & Revenue
Smaller nonprofits often have to invest a higher percentage of their budget to get meaningful visibility. As one study noted, smaller revenue organisations (e.g., $1.4M-$4M) had lower median spend in absolute terms but sometimes a higher percentage of expense dedicated to advertising than larger ones. wholewhale.com
2. Mission and Marketing Dependency
Some nonprofits’ revenue models or audience engagement depend heavily on reaching broad audiences (e.g., performing arts nonprofits, organizations with events, etc.). A study found that performing arts companies had a median ad spend of over $50,000 annually — much higher than other nonprofits. Kindful
3. Digital vs Traditional Channels
Digital marketing (search, social, email) often offers better tracking and lower entry cost, but still requires investment. For example, nonprofits leveraging paid search saw higher return on ad spend. Double the Donation
4. Strategy, Infrastructure, and Experience
If you already have a website for marketing, social channels (Instagram for nonprofits), a defined brand and marketing team, your budget may shift from experimentation to scaling. Organisations without these foundational systems often spend more proportionally to build them. Hyperakt+1
5. Economic Conditions & Donor Expectations
When budgets tighten, marketing is often the first line item cut — which can hamper long-term growth. prosper-strategies.com
So, How Much Should You Spend? A Rule-of-Thumb and Strategic Approach
While there’s no one-size-fits-all, here are benchmarks + guidance you can use.
Rule-of-Thumb Budget Ranges
If your total operating budget is $500,000, then 5% would equal $25,000; 10% would be $50,000.
If your budget is $5 million, then 5% is $250,000; 10% is $500,000. According to branding guidance, organisations with larger budgets often allocate ~5%–15% of total operating expenses to marketing. Hyperakt
If you’re just starting (annual budget under $1 million), aiming toward the upper end (10%–15%) may make sense to build your website for marketing, social foundations, and branding. Big Sea+1
Strategic Approach to Budgeting
Instead of simply picking a percentage, align your budget to your goals and expected outcomes. Key steps:
Define your marketing goals: e.g., increase website traffic for marketing by 30% year-over-year; grow Instagram for nonprofit followers to convert into volunteers/donors.
Break down the tactics you’ll invest in: website maintenance/enhancement, paid advertising, social-media content, email marketing, branding collateral.
Estimate cost per tactic, and ensure you build measurement into each (e.g., cost per visit, cost per donor, conversion rate).
Review annually (or quarterly) and adjust spend according to what’s driving results. As one budget-mistakes article says, avoid basing marketing budget solely on past spend or on a flat percentage. prosper-strategies.com+1
Examples & Case Studies to Illustrate
A 2024 advertising benchmark study found that the median nonprofit ad spend for those who invest in ads was $12,950 — roughly $1,000 per month. wholewhale.com
In the 2021 Kindful blog of nonprofits’ advertising spend, the median was $12,067 annually for many mid-sized organisations. Kindful
Regarding social media ads: In a 2022 survey, 34% of nonprofits reported budgets up to $1,000 for social media ads/boosts; only 6% reported budgets larger than $10,000. Nonprofit Marketing Guide (NPMG)
These examples underscore that many nonprofits operate with modest marketing budgets — which means priority, strategy, and measurement are critical.
What Does That Mean for Your Nonprofit Marketing & Fundraising Efforts?
When you understand the budget context, you can make smarter marketing decisions:
If you have a small budget, invest in your website for marketing first. Your website is the hub: social media should drive traffic there.
Prioritise cost-efficient channels: email marketing, organic social, and utilising pro-bono resources.
Use paid advertising only after you have tracking and conversion pathways. The ROI of ads can vary widely. Double the Donation
Don’t treat marketing purely as overhead; treat it as mission-advancing infrastructure. When you see marketing as essential, you’re less likely to slash it when times get tough. prosper-strategies.com
Set incremental budgets and be ready to evolve: your marketing spend will likely increase as you build brand awareness and digital infrastructure.
Key Mistakes to Avoid in Your Marketing Budget
Setting no dedicated marketing budget (many nonprofits still “play it by ear”). Tower Marketing+1
Allocating too little of your budget to marketing/communications which limits the capacity to build your brand and website for marketing.
Basing your budget only on past spend rather than outcome-based planning.
Treating marketing, communications, and fundraising as a single line item. Good practice is to differentiate them and allocate accordingly. prosper-strategies.com
Cutting marketing first when resources shrink — this can reduce visibility, donor acquisition, and long-term sustainability.
If you’re ready to build or optimise your nonprofit marketing budget — ensuring your website for marketing is ready, your Instagram for nonprofits strategy is aligned, and your overall investment in nonprofit marketing is meaningful — we can help.
Book a call with Socials Runway Marketing Consultancy today and let’s develop a budget-and-strategy roadmap tailored for your nonprofit. Or follow us on Instagram @socialsrunway for more insights on nonprofit marketing, fundraising strategy, and social media best practices.
