Choosing a marketing supplier for a nonprofit involves constraints commercial buyers do not face. How fundraising help may be paid is regulated, administrative spending is scrutinised by donors and watchdogs, the board has a view, and the year ends in a few concentrated weeks of giving. Those shape the shortlist more than creative capability does.
Ask how they are paid before anything else
Commission on funds raised is discouraged by professional bodies and regulated at state level, with registration obligations for paid solicitors and fundraising counsel. Most legitimate nonprofit work is charged as fees for time or project. A supplier proposing a percentage of what it raises should be able to explain how that complies where you solicit.
Sector experience is genuinely different
Nonprofit work needs understanding of donor lifecycles, grant reporting, giving days and the year end concentration, plus the sensitivity to tell a story about beneficiaries without exploiting them. A commercial agency doing its first nonprofit project will learn on your budget, which may be acceptable if the rate reflects it.
Build capability rather than dependency
Budgets fluctuate with funding, so a supplier who documents, trains and leaves the organisation able to continue is worth more than one who becomes essential. Ask what the team will be able to do themselves at the end, and make it an explicit deliverable rather than a hope.
Data obligations are heavier than they look
Donor records, and often beneficiary records, are sensitive, and payment data carries its own standards. Any supplier touching that data needs the right agreements and the right level of access, and the organisation must hold its own platforms and lists. Losing a donor database to a former supplier is this sector's worst version of that mistake.
Questions people ask about marketing companies for nonprofits
Can a nonprofit pay a percentage of funds raised?
It is professionally discouraged and regulated at state level with registration requirements for paid solicitors. Take advice before agreeing anything percentage based, in every state where you solicit.
How should a nonprofit budget for marketing?
As an investment measured by donors acquired and retained and by lifetime value rather than by a fixed share of revenue. Be prepared to explain it to the board in those terms.
Are there discounted services for nonprofits?
Grant programmes exist for search advertising, some platforms offer nonprofit rates, and many agencies do reduced fee work. The grants in particular need active management to be spent well rather than sitting unused.
What should the first project be?
Usually fixing the donation path on a phone and the email programme, before acquisition. Many organisations buy traffic into a donation flow that loses people at the payment step.