8 Marketing Challenges Only Nonprofits Understand

Marketing challenges nonprofits face

Every nonprofit runs into marketing obstacles at some point. Below are eight common challenges these organizations face, along with practical ways to address them.

1. Nonprofits often work with shoestring marketing budgets.

Budget planning can be challenging for nonprofits. Most organizations try to funnel the majority of their funds to their core mission, which usually leaves little left for marketing. Yet marketing is how they build awareness and connect with potential donors and volunteers.

“I’ve found that nonprofits often struggle with limited marketing budgets while serving complex needs,” said Beth Southorn, executive director of the nonprofit LifeSTEPS. “We’ve had to be extremely resourceful, stretching each dollar while communicating nuanced social service value propositions.”

Overcoming the issue

• Focus on relationship-based marketing: Southorn advised investing in relationship-based marketing rather than transaction-focused campaigns because it costs less to maintain a few high-quality relationships than constantly chasing smaller, less committed donors.
• Be specific about which problem you want to solve: Southorn noted that narrowing your message to a specific community need can make it easier for potential partners and supporters to see where they fit. “When we expanded services for seniors aging in place, we developed targeted materials highlighting this specific expertise rather than our general supportive services — resulting in partnerships with senior-focused organizations that wouldn’t have connected with broader messaging,” Southorn said.

2. The nonprofit’s target audience is too broad.

Today, people are bombarded by news of wars and disasters around the clock, and it can be challenging to impress them with your cause’s unique urgency. Even though you may feel that everyone should care about your cause, connecting with potential supporters and donors in a way that inspires action can be difficult for many nonprofits.

Dr. Robert Selliah, founder of American MedChem, a nonprofit that aims to discover precision medicine for children with rare diseases, explained his organization’s messaging challenges. “There’s a major lack of awareness in the marketplace when it comes to rare diseases. Making people aware is a challenge because people don’t want to talk about sick kids. It’s a touchy subject.”

Overcoming the issue

Remember that not everyone is your ideal donor. Some people will sympathize with your cause while others may have different priorities. If you try to convince everyone to donate, you’ll waste resources that could be spent more strategically.

To pinpoint your target audience — the people most likely to donate to your cause — refine your messaging and consider the following best practices:

• Conduct market research: The first step in narrowing your target market is creating a market research plan. You may have the best cause in the world, but if you fail to research your audience properly, your philanthropic efforts will be a waste of time.
• Target your ideal supporters: Many nonprofits make the mistake of targeting everyone as a potential supporter or donor. Determine who your ideal supporters and donors are, how much money they make, where they spend their time and why they might be interested in supporting you.
• Tweak your messaging: Narrowing your focus allows you to tweak your marketing messaging toward those who will genuinely resonate with your cause and become the donors you’re seeking.

3. It’s difficult for nonprofits to get people to part with their money.

Getting people to part with their money is challenging for all businesses, but it’s especially difficult for nonprofits.

In a for-profit business, people exchange their hard-earned money for a tangible product or service they want or need. In contrast, when people donate their money to a nonprofit, the gratification is often less tangible. If the nonprofit is new, people may not even be entirely sure where their money is going and may hesitate to donate.

Overcoming the issue

Lead your marketing messages with emotion in mind. For-profit businesses often try to emotionally connect with customers to make a sale. Without a tangible reward for the donor (aside from the satisfaction of helping others), it’s even more essential for nonprofits to speak to people’s emotions in their marketing messages.

To reassure people that parting with their money is the right thing to do, try these tips:

• Use video marketing to tell your story: Video is a powerful storytelling medium, allowing a nonprofit to demonstrate how it fulfills needs and impacts people, the environment, animals or whatever cause it supports. Video content builds trust, creates awareness and can provide the impetus your organization needs to get the ball rolling on donations.
• Let donors know precisely where their money is going: It’s crucial to let potential donors know exactly how their money will be spent. You could have a large group of supporters who understand and resonate with your cause, but if it’s unclear where donations are going, supporters are unlikely to become donors.
• Show off a charity evaluator rating: Organizations like Charity Navigator evaluate and rate nonprofits to reassure people that they’re dealing with reputable organizations. If you’re featured on one of these sites with an excellent rating, show it off in your marketing materials. If you’re new, try registering with these organizations to get evaluated or featured.
• Gather testimonials: Testimonials from people who have benefited from your organization can also help build credibility and trust with potential donors.

4. Nonprofits must adapt to the rise of digital marketing.

Nonprofit organizations are notorious for relying on print materials, brochures and direct mail campaigns to round up supporters and donations. However, many donors who respond to direct mail postcards and letters are over 55 years old, leaving a huge segment of potential donors untapped.

Overcoming the issue

Nonprofits need to adapt to the rise of digital and social media marketing. Here are some tips:

• Create social media profiles for your nonprofit.
• Ensure your website design is thoughtful and effective.
• Recruit volunteers who understand digital marketing strategies.
• Create email marketing campaigns to raise support.

A well-mapped-out social media strategy, content marketing strategy — and even an influencer marketing strategy — can pay off significantly if your target donors are on the younger side. Even if your primary donor base is older, digital marketing strategies help ensure your organization remains visible to the next generation of donors.

Digital strategies also play a role in public relations coverage. Instead of reaching out to local print newspapers and magazines, consider contacting digital news outlets or local bloggers with your message to reach a broader audience.

Digital marketing doesn’t have to require a large budget. Many tools can help nonprofits expand their reach without major spending.

“Use free or low-cost tools whenever possible (Canva, Mailchimp, etc.),” advised Phillip Mandel, CEO of Mandel Marketing. “… Also, use AI when possible to get the most out of an almost-certainly hard-pressed marketing team. Finally, get smart about how you use the resources you do have.”

5. Nonprofits rely on volunteers.

In addition to slim marketing budgets, the lack of funding for operational needs often affects many areas of nonprofit operations. Unlike startups and traditional businesses, most nonprofits rely heavily on volunteers.

While nonprofits benefit from volunteers’ free labor, these supporters are often less predictable than paid employees because they contribute on their own time and schedule. There’s also no guarantee that your volunteers have expert marketing experience.

Relying solely on volunteers can create marketing inconsistency or even stagnation. But when someone cares enough about your cause to donate their time, it’s hard to criticize them or make additional demands.

Overcoming the issue

Create as professional a marketing presence as possible to help move your organization forward. Here are some best practices and tips:

• Hire professional marketing help if possible: If you can afford to hire a digital marketing expert, in-house marketing person or consultant (even part-time), do it. Choose someone based on their expertise, but also ensure they connect with your mission and core values.
• Hold regular meetings with volunteers: If you’re like many nonprofits and can’t afford to allocate funds for marketing help, you still have options. First and foremost, hold regular meetings with volunteers to keep them updated, informed and trained in marketing methods. Remind them why they do what they do. If they feel appreciated and know their work serves a higher purpose, they’ll remain invaluable team members.
• Find free marketing help: Take advantage of free marketing help through resources like SCORE, a resource partner of the U.S. Small Business Administration. SCORE comprises a network of expert volunteer business mentors who can help with a wide array of topics, including marketing. They can help you create a marketing strategy, point you toward useful marketing resources and serve as a sounding board when you get stuck.

6. People may not be aware of your nonprofit.

Even if you use digital advertising, email and direct mail, you may still be leaving potential contributors in the dark. People who are considering donating to a cause tend to go online to learn more, so it’s essential to ensure there is plenty of clear information available about your organization. 

Overcoming the issue

Ensure your online content is both visible and informative. Here are some tips:

• Be where your potential donors are: You should be present wherever potential donors spend their time so you can catch their eye and share information about your cause. This includes your website, but don’t ignore social media platforms like Facebook, YouTube and LinkedIn. You’ll also want to reach potential donors through well-placed ads and articles on third-party websites.
• Ensure your content answers potential donors’ questions: Your website and online videos (on YouTube, Facebook and other platforms) must address the questions potential donors are likely to have. For example, explain your cause clearly, how your organization helps, what percentage of funds raised goes toward the cause and the outcomes of your work. Potential donors should know enough to feel comfortable that their money will be in good hands and make a difference.
• Demonstrate that your organization is above board: Let potential donors know how seriously you take your mission and their trust. To remain compliant, it’s crucial to abide by all nonprofit laws and regulations, including nonprofit accounting and financial reporting requirements. If possible, get rated or listed on Charity Navigator, CharityWatch, BBB Wise Giving Alliance or Candid.

7. Not asking for donations — or asking too often.

You can do a terrific job of spreading awareness about your cause, but it won’t do much good unless you actually ask your audience for a donation. Because nonprofits aren’t exchanging a product or service for money the way a for-profit business does, asking people to give money can feel awkward. However, it’s an essential part of running a successful nonprofit.

On the other hand, some nonprofits are constantly asking donors for money, which can quickly become a turnoff. Donors want to feel appreciated and involved in your cause and know they matter for more than just their wallets.

Overcoming the issue

• Make it easy to donate: Include prominent “Donate now” buttons or links on both your website and your social media profiles. You can also include calls to action at the end of some of your social media posts (use the 5:3:2 social media rule for balance).
• Train your team: Teach your staff that fundraising is an essential part of their roles and show them how to do it effectively.
• Prioritize donor outreach: Schedule regular donor appreciation events and communications. When appropriate, involve your top donors in projects, decision-making and updates on the progress of your cause.
• Make fundraising fun: Include fun activities at fundraising events such as live music, food and dancing.

8. Nonprofits struggle to build a consistent brand.

Lidia Varesco Racoma, nonprofit brand strategist and marketing designer at Lidia Varesco Design, noted that nonprofits often struggle to maintain consistency in their visual branding and messaging. “Limited budgets, small teams and time constraints often mean materials are created on the fly, which can lead to an inconsistent or inaccurate brand experience,” she explained.

Overcoming the issue

According to Racoma, the key to overcoming this is building a clear brand strategy and following it consistently. Consider the following tips:

• Start with a strong brand strategy that clearly defines your organization’s voice, visuals and messaging.
• Distinguish your brand image from other nonprofits in the same space by highlighting your unique approach and strengths.
• Refer to a brand guide to ensure every marketing piece — whether it’s a fundraising appeal, social media post or donor email — reflects your mission and maintains a unified look and feel.

Marketing dos and don’ts for nonprofits

Here are some strategies to try and pitfalls to avoid when marketing your nonprofit.

Nonprofit marketing dos

• Take advantage of discounts for nonprofit organizations: Many technology and marketing companies offer discounts — or even free access — to nonprofit organizations. Examples include the following:
  • Constant Contact, a tool for creating email campaigns and newsletters (read our Constant Contact review to learn more about this platform)
  • Adobe, the maker of Photoshop and other leading graphic design programs
  • BuzzSumo, a content strategy tool
  • Hootsuite, a social media management platform
  • HubSpot CRM, a customer relationship management (CRM) tool (read our HubSpot CRM review to learn about its features)
  • Piktochart, a graphic design tool
  • SimpleTexting, a text marketing platform (read our SimpleTexting review to learn more about this tool)
• Use personalization to boost donations: Tracking prospect preferences and behaviors is crucial for sending effective personalized email marketing messages. Multichannel marketing tools like HubSpot CRM can help. Additionally, segment your email lists based on the content supporters have interacted with and the actions they’ve taken. It’s also a good idea to become familiar with top donors’ interests so you can offer personal greetings at in-person events.
• Tell your nonprofit’s story with impactful videos: Videos — both online and at live events — are an ideal medium for telling your organization’s story. They can vividly demonstrate the problems you work to address and reveal the results of your efforts. Repurpose longer videos by breaking them into shorter clips for your website and social media accounts. You can also use live video streaming for major fundraising events.
• Recruit brand ambassadors: Actively recruit volunteers and donors to be your nonprofit’s brand ambassadors. Ask them to share your cause with friends and co-workers, both in person and via social media. Brand ambassadors provide free promotion, and their sincerity can help spread the word about your cause. Provide them with specific content to ensure consistent marketing messages and branding.
• Publicly thank your biggest supporters: Tell your top supporters how much you value their contributions. Thanking them publicly can be particularly effective. Supporters will often share recognition online, giving your organization additional exposure.

Nonprofit marketing don’ts

• Don’t ignore Gen Z: You want to build a brand that speaks to younger generations to ensure your nonprofit stands the test of time, so don’t forget to include Gen Z in your outreach efforts. The oldest members of Gen Z (born starting around 1997) are now in their late 20s. They’re increasingly establishing careers and financial independence, making them a growing segment of potential donors. This cohort is also known for being socially conscious. To appeal to them, use short, compelling messages that speak to their values and maintain an active presence on social media channels like Instagram, TikTok and YouTube.
• Don’t ignore relationships with lapsed donors: You likely have donors who haven’t given in a while, so don’t forget about them. After all, you have already invested in marketing to attract them, they have shown interest in your cause and you already have their contact information. Use email retargeting campaigns to reignite your relationship with them.
• Don’t try to be on every social media platform: If you post content on every platform, you are likely wasting time and resources. Your donors will use only a few platforms consistently. Research usage statistics, review donor demographics and ask supporters which platforms they use. Focus on the most appropriate platforms and build a strong social media presence where it matters most.
• Don’t neglect website design and security: No matter how good your cause is, visitors will leave quickly if website design mistakes create a bad impression. Poorly designed sites with slow page load speeds can confuse and frustrate visitors. Additionally, supporters will be reluctant to donate online unless they know your website security is strong enough to protect their data. Invest in a reputable web designer who can create a positive and secure user experience.
• Don’t rely on word of mouth: A consistent marketing effort is vital to successful nonprofit operations. Many other worthy causes compete for donations, and donor interest can change over time. Supporters may move away, lose interest, experience financial changes or drop off your active list for other reasons. A steady stream of new potential supporters must offset this natural attrition. Create and execute a marketing plan consistently, evaluate what works and adjust your efforts to achieve the best results.

Marketing your nonprofit successfully

Marketing a nonprofit requires skill, passion and ingenuity. Even if your organization is short on volunteers, cash and marketing expertise, investing time in research and maintaining consistent outreach can help you attract supporters and donors.

When the going gets tough (and it will if you’re running a nonprofit), remember why you’re doing what you’re doing. Take a break when you need to and keep moving forward. Passion and consistency are often the biggest drivers of nonprofit success.

As Margaret Mead once said, “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.”

Source interviews were conducted for a previous version of this article.