Fundraising Costs: What Does a Professional Fundraising Campaign Cost in 2025
- Calculating ROI (Return on Investment) is the first step before any activity regarding fundraising campaigns: Invest wisely!
- Average fundraising costs of around 15% are normally to be expected.
- Keep an eye on your fundraiser revenues. Regularly take a step back, review costs, and look where you can save.
Inhaltsverzeichnis
- 1 Fundraising Costs: What Does a Professional Fundraising Campaign Cost in 2025
- 1.1 The Essentials in Brief
- 1.2 The Non-Profit Organization Rulebook
- 1.3 But What Is Actually Normal?
- 1.4 Why Are Evaluations and Analyses Incomplete?
- 1.5 The Impact on Charity Organizations
- 1.6 Risk Is Necessary!
- 1.7 What Is Actually the Norm?
- 1.8 Costs to Watch Out For
- 1.9 How Non-Profit Organizations Can Save
- 1.10 Final Thoughts / Conclusion
- 1.11 Free Consultation
- 1.12 Additional Articles
| Fundraising Kosten – Übersicht | |
| ⭐ Vorgabe: | Fundraising Kosten |
| 🏆 Dauer: | Ca. 3 Monate |
| 💰 Kosten: | Projektspezifisch |
| 📺 Zielsetzung: | Finanzierung einsammeln |
| ⚡ Technologien und Kenntnisse: | Social Media, Webseite, Video, E-Mail-Newsletter |
The Essentials in Brief
- If you want to generate additional income for your non-profit through fundraising, it is of utmost importance to check the ROI before any revenue-generating activity.
- There is no golden standard for investment and ROI that non-profit organizations can follow. A simple example calculation or fixed value without considering surrounding factors is simply wrong!
- To start an online fundraising campaign, you first need the appropriate technology or a fundraising platform.
Fundraising Aktivität/Methode |
Durchschnittliche Kosten pro Euro |
|---|---|
| Haupt Kampagne | €0.05 bis €0.10 - 1.00 € Eingesammelt |
| Unternehmen und Stiftungen | €0.20 - 1.00 € Eingesammelt |
| Direkt Mail Akquise | € 1.00 bis €1.25 - 1.00 € Eingesammelt |
| Direkt Mail Renewal | €0.20 - 1.00 € Eingesammelt |
| Geplantes Giving | €0.25 - 1.00 € Eingesammelt |
| Benefits/Speziale Events | €0.50 der Gesamt-Proceeds |
If you want to generate additional income for your non-profit through fundraising, it is of utmost importance to check the ROI before any revenue-generating activity. This can be most easily understood with two simple calculations. When these two formulas are applied to every revenue-generating activity, you can quickly and easily determine which of these activities is the most profitable—and allocate additional resources accordingly.
The first calculation relates to net revenue. Net revenue provides far more insight than gross revenue. Gross revenue represents all income generated by a fundraising campaign, but those figures are worthless unless you know what it cost to earn that money in the first place. Costs are both direct (required materials, campaign staff, etc.) and indirect (volunteer hours, staff time, etc.). You only know how much money you truly earned once all costs associated with generating that revenue have been deducted.
Net Revenue = Gross Revenue – Fundraising Costs (direct and indirect)
Leaders of non-profit organizations are constantly striving to determine the correct level for fundraising costs. Most advice is based on informal discussions among well-meaning volunteers. Misinformation is more widespread than facts. As a result, organizations often take incomplete measures to assess the impact and costs required for growth.
We can understand celebrating expenses of 12% on $1 million in revenue. But what if spending 17% would achieve $2 million in revenue while maintaining a steady growth curve? What if you could have served twice as many people by choosing a more aggressive investment? Unfortunately, such discussions are rarely held within non-profit organizations.
The Non-Profit Organization Rulebook
The benefits of ethical capitalism are obvious: investments lead to efficient organizations that can meet growing demands. In the non-profit world, however, the rules are a bit different. The general perception is that donors want to see good deeds accomplished with their donations—and that all other types of expenses are wasteful and unjustified. As a result, efficient investments in salaries, marketing, operations, etc., are rarely discussed. When they are, the conversation is often fear-driven and seldom transparent or honest. A well-intentioned donor might insist that 100% of their gift must go directly to the cause. We must respect that wish, of course—but we also know that this approach hides the reality and the true problem. After all, the money to pay salaries and bills has to come from somewhere.
Fortunately, most donors understand that expenses are necessary to achieve long-term results. However, few understand how to evaluate fundraising in relation to those costs.
But What Is Actually Normal?
Costs of 15% are generally accepted as the average for fundraising campaigns. So let’s begin with a very basic and simple analysis: Is this the correct standard for a small or new charity? Or is this value more suited to large, established organizations? Is it a standard for charities supporting well-known causes like breast cancer, or rather for smaller charities with lesser-known projects, such as a newly discovered disease about which little is known? As you can see, even on such a simple basis it’s not clear where or how a standard applies.
Do donations go to a hospital that then gives donors VIP access at a cost similar to their gift? Or is it a small agency that can only send a sincere thank-you note? Let’s simplify this contrast: Does it make sense to compare the average spending of a local university hospital with that of a small, established charity helping children in need?
The answer is clear: No, of course not. Yet that’s exactly what we do!
In all of these scenarios, the acceptable level must be precisely calculated and considered!
If you want to analyze a fundraiser’s performance, you must consider size, maturity, popularity, purpose, the organization’s reach, and many other factors.
Why Are Evaluations and Analyses Incomplete?
We are human, and in the absence of knowledge we repeat both truths and mistakes. If no one challenges established axioms, they become accepted as facts. Board audits often lead to measures that feel good but lack the context needed for informed, correct decisions. The blame doesn’t lie with auditors—they are simply fulfilling their board’s expectations. For example, costs approaching 20% may look better than costs of 10%, but there is no meaningful discussion about what benefits would result or what could be achieved with the higher investment. One thing is certain: there is no golden standard for investment and ROI that non-profits can follow. A simple example calculation or fixed value, without accounting for surrounding factors, is simply wrong!
Sometimes 2 + 2 actually equals 1.7, or sometimes even 3.1
How many board members understand that fundraising costs can be—and are—allocated internally in virtually endless ways? Every non-profit organization creatively determines which costs are covered. Just ask a non-profit CFO: Is 50% of the CEO’s time used for operations or fundraising? Is the fundraising brochure a marketing tool or simply a brochure? Is the food served at a fundraising event an expense or an educational cost? Is a temporary staff member an event cost or an operational cost? All these questions—and many more—create a huge variable when budgeting costs for a fundraising campaign.
The Impact on Charity Organizations
The effect of these standards can have dramatic negative consequences—especially for new or small organizations. Most studies show that losing a good development staff member can cost a charity hundreds of thousands of euros, and in the worst case, millions. Yet many charities accept the loss of development staff because they refuse to invest the necessary €10,000 in salary, training, etc. They simply believe they can’t afford it—or at least believe they can’t.
A charity should be measured by the quality of its services and the number of people it serves—not by how low it can keep its operating costs.
Here’s a classic example: A mid-level development manager earned a below-average salary despite doing outstanding work. This talented graduate stayed with the organization for nearly two years, using her experience to build valuable relationships. Just before a record-breaking fundraising haul, she was headhunted by another organization that could afford to pay market rates.
A few months later, during an audit, the charity proudly reported an average expense rate of just 12%. The executives beamed with pride at the praise. In reality, it was the very charity least able to afford losing that development officer. Instead, they should have considered the long-term relationship between low investment, staff turnover, and other factors—all of which mean sustainable growth and stability. Instead, they debated saving $10,000.
Risk Is Necessary!
A second trend has emerged: fear of risk. In traditional businesses, risks are accepted while new ideas are explored. Not every fundraising campaign will succeed—and that’s okay! Some work, others don’t. Even the most successful campaign takes time to mature. A great idea might raise $50,000 at a 70% cost ratio in its first run. Ten years later, that same idea could raise $1,000,000 at a cost ratio of just 20%. How many charities shy away from the risk of increasing their fundraising cost ratio?
What Is Actually the Norm?
There are lengthy, complex discussions on this topic. It’s the job of fundraising experts to bring these discussions and decisions to leadership. Through many books, articles, and a TED Talk worth watching, Dan Pallotta has brilliantly shown how to master this challenge. Watch here:
Costs to Watch Out For
Now that you know how to approach fundraising costs, it’s time to look at the different expenses involved. We’ll examine them from the perspective of a small startup seeking online fundraising options.
Platform Fees and Contracts
GoFundMe is one of the best platforms for online fundraising
To launch an online fundraising campaign, you need the right technology or platform. But these platforms often cost hundreds—if not thousands—of euros in monthly or annual fees. The most well-known sites charge $400 per month plus 3–8% of total campaign revenue. Many also require a lengthy contract binding you for a year or more.
Implementation Costs
Non-profits typically need additional help setting up an online fundraising campaign. It’s rarely as simple as “sign up and go.” From initial setup to ongoing issues, hidden costs escalate quickly. Once the allotted support time in your contract is used up, you’ll face high, unpublished hourly rates for further assistance. Integration and adding features also cost extra—factors you must consider when choosing a platform.
Nonprofit Staff Hours
Alongside implementation costs, staff time spent on the campaign adds hidden expenses. Whether they’re integrating systems, troubleshooting, or figuring out an outdated platform, these activities can be extremely time-consuming and costly for your team.
Limited Feature Offerings and Special Promotions
Some platforms offer special deals for charities to save costs, but these often come with limited features. While you might save on front-end costs, you lose money if you can’t leverage the platform’s full potential. For online fundraising, you need strategies like personalized campaign pages and peer-to-peer functionality. Basic, unbranded pages hurt quality and donor willingness. Limited features also mean limited donor data—quality and functionality matter!
How Non-Profit Organizations Can Save
So how can a charity that spends tens of thousands of euros on technology each year cut costs?
Especially for small projects using fundraising, finding a cost-efficient solution is key to reaching your goal.
Look for High-Quality, Low-Cost Solutions
Non-profits tired of overpaying for online fundraising should seek affordable—or even free—alternatives that don’t compromise quality. Some platforms charge minimal or no fees per donation and have no setup or monthly costs. If you choose a per-donation fee model, make sure donors can opt to cover these fees for you.
Keep Your Options Open
Avoid long-term contracts that lock you into a single provider. As a charity, you need the flexibility to respond to new technologies, special offers, and changing needs.
Focus on Easy-to-Use Technology
Charities are busy solving some of the world’s biggest problems and are often overworked. Choose technology that is easy to learn and use to avoid unnecessary extra effort!
Ask Your Friends, Peers, and Partners
Online reviews provide valuable insights into different platforms. Check blogs, forums, and social media groups dedicated to helping non-profits. Ask specific questions to get a clear picture of actual fundraising costs for your organization.
Final Thoughts / Conclusion
Free Consultation
