Did you know that 7/10 of nonprofits spend at least 75% of their budget on programs and services? It may seem like a good sign not to spend an entire budget, but it leaves an organization at risk of not reaching its full potential. Creating a marketing nonprofit budget and getting the amount right is an important part of reaching goals as an organization.
Read on to learn about how much of your nonprofit budget should get spent on marketing.
Always Have a Budget
Not having a nonprofit budget for marketing is a deadly sin. No matter the size of your organization, it requires some kind of marketing.
If you don’t think your organization needs a marketing budget, think again. These are just a few ways a nonprofit marketing budget can help you:
- Engages prospective donors
- Recruits volunteers
- Drives brand awareness
- Establishes credibility
- Attracts community support
- Generates support for certain issues
- Drives behavioral and social change
Even if your organization does not care to reach every goal on the list, you can probably relate to a few of them. Without a nonprofit advertising budget, you can’t expect to reach your full potential as an organization.
How Much Is Too Little?
Knowing how much is too little should be part of your budget strategy. The first thing you need to do is figure out your main goals for marketing. After you know which goals you need to reach, you can decide how much it will cost to support those goals.
But how can you know how much to invest in these goals? You don’t want to invest too little and you don’t want to spend too much. To figure out your nonprofit marketing strategy budget, try out one of these budgeting strategies.
The percentage method allows a nonprofit to scale their marketing budget as the organization scales their entire budget. Depending on the size of the nonprofit, the marketing budget will occupy a certain percentage of the total budget. This usually runs between 5% and 15%.
The dollar method is just what it sounds like: a marketing budget is created with a set dollar amount. This is usually based on past expenses. This method is widely used because of how simple and clear it is.
An incremental method means you won’t have the same budget all of the time. With this method, you will have a specific percentage that can increase or decrease based on performance. This usually changes quarterly.
Always Think About Your Goals
The best way to come up with a nonprofit budget for marketing is to keep your goals in mind. The number you come up with should only be based on the outcomes you are expected to see.
No matter which method you decide on to create a marketing budget, your goals need to be considered. When you use goal-based budgeting, every dollar spent should cause a return on your goals.
Create Your Budget for Marketing Now
Without a nonprofit budget for marketing, you cannot expect an organization to reach its potential. No matter how small or large a nonprofit is, it can see success with a proper budget. Choosing a method to figure out the right spending amount should always be done with goals in mind.
For more ways to create a beneficial nonprofit marketing budget, contact us today.