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Nonprofits are uniquely affected by specific marketing situations and difficulties.
No one understands the challenges of effective marketing on a shoestring budget quite like a nonprofit. Nonprofits want every possible dollar to go to their cause, not marketing. However, it’s challenging to bring in donations without spending some money. Nonprofits must spend money to gain supporters and turn those supporters into donors.
While nonprofits share some of the same overall marketing challenges as other businesses, they’re uniquely affected. Other challenges are entirely exclusive to nonprofits. This article will cover the common marketing challenges faced by nonprofit organizations and how to overcome them as well as nonprofit marketing do’s and don’ts.
We’ll explore eight marketing challenges a nonprofit might face and offer suggestions for overcoming them so you can support your cause successfully.
Good nonprofits try to funnel most of their funds to their main mission, which usually leaves little left for marketing. Yet, marketing is how they build awareness and interact 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
Today, people are bombarded by news of wars and disasters on a 24-hour news cycle 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 is a significant problem for 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 a lot of money you could have spent more wisely.
To pinpoint your target audience — the people most likely to donate to your cause — be mindful of your messaging and follow these best practices:
Kat Krieger, former national director of service training organization Multiplying Good, said that targeting the right audience and delivering a tailored message is key to creating consistent donor relationships. “Using the intelligence gathered on website visitors, media partners and event registrants, we succeeded in tailoring our outreach based on specific behaviors and actions across a base of more than 35,000 contacts,” Krieger shared. “Subsequently, we were able to continue strategically engaging and nurturing key stakeholders and continue building more consistent relationships in the long term.”
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 isn’t as tangible. If the nonprofit is new, people may not even be entirely sure where their money is going and may be hesitant 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 (minus the satisfaction of helping someone), 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:
Nonprofit organizations are notorious for leading the charge with print materials, brochures and direct mail campaigns to round up supporters and donations. However, most donors who respond to direct mail postcards and letters are over 55. This leaves a huge segment of potential donors untapped.
Overcoming the issue
Nonprofits need to adapt to the rise of digital marketing and social media marketing. Here are some tips:
A well-mapped-out social media strategy, content marketing strategy — and even an influencer marketing strategy — will return your time investment tenfold if your target supporters and donors are on the younger side. Even if your primary donor base is older, digital marketing strategies will make you 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, reach a larger audience by approaching digital news outlets or local bloggers with your message.
Times are changing and, if you fail to evolve with your target donors, you’re unlikely to get your nonprofit off the ground or to the next level. “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.”
In addition to slim marketing budgets, the lack of money for organizational purposes cascades throughout nonprofit organizations. Unlike startups and traditional businesses, most nonprofits rely heavily on volunteers.
While nonprofits benefit from volunteers’ free labor, these supporters are less reliable than paid employees because they contribute on their own time and schedule. There’s also no guarantee that your volunteers come with expert marketing experience.
Relying solely on volunteers can create marketing inconsistency or even stagnation. But when someone resonates enough with your cause to volunteer 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. You could have the best cause in the world, but if no one knows about it (and no one’s donating to it), you’re extremely limited in your capacity to make a difference. Here are some best practices and tips:
Even if you use digital advertising, email and direct mail, you may 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’s plenty of information about your organization.
Overcoming the issue
Ensure your online content is broad and deep. Here are some tips:
You can do a terrific job of spreading awareness of your cause, but it won’t do any good unless you actually are asking your audience for a donation. Because nonprofits are not giving a product or service for money like a for profit business, it can be awkward for them to ask for people to give them money, but it is an essential part of running a successful nonprofit.
On the other hand, some nonprofits are constantly asking donors for money and this can be a big turnoff. Donors want to feel appreciated and involved in your cause and like they have more value to you than just their wallets.
Overcoming the issues
Lidia Varesco Racoma, nonprofit brand strategist and marketing designer at Lidia Varesco Design, pointed out, “One of the biggest marketing challenges nonprofit organizations face is consistency — both in 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.”
Overcoming the issue
According to Racoma, the key to overcoming this is:
Here are some strategies to try and pitfalls to avoid when marketing your nonprofit.
Marketing a nonprofit requires skill, passion and ingenuity. Even if your nonprofit is short on volunteers, cash and marketing savvy, investing your time, conducting market research and maintaining consistent action will help you round up supporters and donors, even in a cash-strapped society.
When the going gets tough (and it will if you’re a nonprofit), remember why you’re doing what you’re doing, take a break and begin again. The biggest keys to nonprofit success are passion and consistency.
As Margaret Mead once said, “Never believe that a few caring people can’t change the world. For, indeed, that’s all we ever have.”
Some source interviews were conducted for a previous version of this article.