{"id":11973,"date":"2019-04-26T08:29:15","date_gmt":"2019-04-26T08:29:15","guid":{"rendered":"https:\/\/www.marketing-faktor.de\/fundraising-kosten\/"},"modified":"2025-12-17T04:08:38","modified_gmt":"2025-12-17T04:08:38","slug":"fundraising-costs","status":"publish","type":"blog_posts","link":"https:\/\/www.marketing-faktor.de\/en\/fundraising-costs\/","title":{"rendered":"Fundraising costs: What will a professional fundraising campaign cost in 2025?"},"content":{"rendered":"<section class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text]<\/p>\n<h1 style=\"text-align: center;\"><strong>Fundraising Costs:<\/strong> <strong>What Does a Professional Fundraising Campaign Cost in 2025<\/strong><\/h1>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row el_class=&#8221;block-round-corners&#8221;][vc_column width=&#8221;1\/2&#8243;][vc_single_image image=&#8221;13483&#8243; img_size=&#8221;full&#8221; css=&#8221;.vc_custom_1764329213239{padding-right: 20px !important;}&#8221;][\/vc_column][vc_column width=&#8221;1\/2&#8243;][vc_column_text css=&#8221;.vc_custom_1720602166585{padding-top: 20px !important;padding-right: 20px !important;padding-bottom: 20px !important;padding-left: 30px !important;}&#8221;]<\/p>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\"><span style=\"font-weight: 400;\">Calculating ROI (Return on Investment) is the first step before any activity regarding fundraising campaigns: Invest wisely!<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\"><span style=\"font-weight: 400;\">Average fundraising costs of around 15% are normally to be expected.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\"><span style=\"font-weight: 400;\">Keep an eye on your fundraiser revenues. Regularly take a step back, review costs, and look where you can save.<\/span><\/li>\n<\/ul>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text][\/vc_column_text][vc_column_text]\t\t\t\t\t\t<div class=\"wpsm-comptable-wrap\">\n\t\t\t\t<table id=\"wpsm-table-257\" class=\"wpsm-comptable center-table-align\">\n\t\t\t\t\t\t\t\t\t<thead class=\"wpsm-thead wpsm-thead-default\">\n\t\t\t\t\t\t<tr>\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<th class=\"placeholder wpsm-placeholder\"><\/th>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<th><\/th>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t<\/thead>\n\t\t\t\t\t<tbody class=\"wpsm-tbody\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<tr class=\"subheader\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td colspan=\"2\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tFundraising costs \u2013 overview\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<tr>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\u2b50 Requirement:\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tFundraising costs\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<tr>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\ud83c\udfc6 Duration:\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tApproximately 3 months\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<tr>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\ud83d\udcb0 Costs:\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tProject-specific\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<tr>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\ud83d\udcfa Objective:\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tRaise funding\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<tr>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\u26a1 Technologies and knowledge:\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tSocial media, website, video, email newsletter\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t\t\t\t\t\t<\/tbody>\n\t\t\t\t<\/table>\n\t\t\t<\/div>\n\t\t[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h2 style=\"text-align: center;\"><b>The Essentials in Brief<\/b><\/h2>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;5&#8243; el_width=&#8221;10&#8243;][vc_column_text]<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you want to generate additional income for your non-profit through <a class=\"wpil_keyword_link\" title=\"Fundraising\" href=\"https:\/\/www.marketing-faktor.de\/ico-fundraising\/\" data-wpil-keyword-link=\"linked\" data-wpil-monitor-id=\"635\">fundraising<\/a>, it is of utmost importance to check the ROI before any revenue-generating activity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">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!<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To start an online fundraising campaign, you first need the appropriate technology or a fundraising platform.<\/span><\/li>\n<\/ul>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]\t\t\t\t\t\t<div class=\"wpsm-comptable-wrap\">\n\t\t\t\t<table id=\"wpsm-table-258\" class=\"wpsm-comptable center-table-align\">\n\t\t\t\t\t\t\t\t\t<thead class=\"wpsm-thead wpsm-thead-red\">\n\t\t\t\t\t\t<tr>\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<th><center><p><font color=white><strong>Fundraising activity\/method<\/th>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<th><center><p><font color=white><strong>Average cost per euro<\/th>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t<\/thead>\n\t\t\t\t\t<tbody class=\"wpsm-tbody\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<tr>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<strong>Main Campaign\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\u20ac0.05 to \u20ac0.10 - \u20ac1.00 collected\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<tr>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<strong>Companies and Foundations\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\u20ac0.20 - \u20ac1.00 collected\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<tr>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<strong>Direct Mail Acquisition\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\u20ac1.00 to \u20ac1.25 - \u20ac1.00 collected\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<tr>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<strong>Direct Mail Renewal\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\u20ac0.20 - \u20ac1.00 collected\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<tr>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<strong>Planned Giving\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\u20ac0.25 - \u20ac1.00 Collected\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<tr>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<strong>Benefits\/Special Events\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<td>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\u20ac0.50 of total proceeds\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t\t\t\t\t\t<\/tbody>\n\t\t\t\t<\/table>\n\t\t\t<\/div>\n\t\t[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"text-align: justify;\">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\u2014and allocate additional resources accordingly.<\/p>\n<p style=\"text-align: justify;\">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.<\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"text-align: center;\"><strong><i>Net Revenue = Gross Revenue \u2013 Fundraising Costs (direct and indirect)<\/i><\/strong><\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"text-align: justify;\">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.<\/p>\n<p style=\"text-align: justify;\">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.<\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h2 style=\"text-align: center;\"><strong>The Non-Profit Organization Rulebook<\/strong><\/h2>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;5&#8243; el_width=&#8221;10&#8243;][vc_single_image image=&#8221;6905&#8243; img_size=&#8221;800&#215;400&#8243; alignment=&#8221;center&#8221; style=&#8221;vc_box_rounded&#8221;][vc_column_text]<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">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\u2014and 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\u2014but 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.<\/span><\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"text-align: center;\"><i><span style=\"font-weight: 400;\">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.<\/span><\/i><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h2 style=\"text-align: center;\"><strong>But What Is Actually Normal?<\/strong><\/h2>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;5&#8243; el_width=&#8221;10&#8243;][vc_column_text]<\/p>\n<p style=\"text-align: justify;\">Costs of 15% are generally accepted as the average for fundraising campaigns. So let\u2019s 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\u2019s not clear where or how a standard applies.<\/p>\n<p style=\"text-align: justify;\">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\u2019s 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?<\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<p style=\"text-align: center;\"><strong>The answer is clear: No, of course not. Yet that\u2019s exactly what we do!<\/strong><\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In all of these scenarios, the acceptable level must be precisely calculated and considered!<\/span><\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"text-align: center;\"><i><span style=\"font-weight: 400;\">If you want to analyze a fundraiser\u2019s performance, you must consider size, maturity, popularity, purpose, the organization\u2019s reach, and many other factors.<\/span><\/i><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h2 style=\"text-align: center;\"><strong>Why Are Evaluations and Analyses Incomplete?<\/strong><\/h2>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;2&#8243; el_width=&#8221;10&#8243;][vc_column_text]<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">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\u2019t lie with auditors\u2014they are simply fulfilling their board\u2019s 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!<\/span><\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"text-align: center;\"><b>Sometimes 2 + 2 actually equals 1.7, or sometimes even 3.1<\/b><\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">How many board members understand that fundraising costs can be\u2014and are\u2014allocated 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\u2019s time used for operations or fundraising? Is the fundraising brochure a <a class=\"wpil_keyword_link\" title=\"Marketinginstrument\" href=\"https:\/\/www.marketing-faktor.de\/was-ist-whitepaper\/\" data-wpil-keyword-link=\"linked\" data-wpil-monitor-id=\"2233\">marketing tool<\/a> 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\u2014and many more\u2014create a huge variable when budgeting costs for a fundraising campaign.<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h2 style=\"text-align: center;\"><strong>The Impact on Charity Organizations<\/strong><\/h2>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;2&#8243; el_width=&#8221;10&#8243;][vc_single_image image=&#8221;6906&#8243; img_size=&#8221;800&#215;400&#8243; alignment=&#8221;center&#8221; style=&#8221;vc_box_rounded&#8221;][vc_column_text]<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The effect of these standards can have dramatic negative consequences\u2014especially 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 \u20ac10,000 in salary, training, etc. They simply believe they can\u2019t afford it\u2014or at least believe they can\u2019t.<\/span><\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"text-align: center;\"><i><span style=\"font-weight: 400;\">A charity should be measured by the quality of its services and the number of people it serves\u2014not by how low it can keep its operating costs.<\/span><\/i><\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"text-align: justify;\">Here\u2019s 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.<\/p>\n<p style=\"text-align: justify;\">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\u2014all of which mean sustainable growth and stability. Instead, they debated saving $10,000.<\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h2 style=\"text-align: center;\"><strong>Risk Is Necessary!<\/strong><\/h2>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;2&#8243; el_width=&#8221;10&#8243;][vc_column_text]<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">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\u2014and that\u2019s okay! Some work, others don\u2019t. 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?<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h2 style=\"text-align: center;\"><strong>What Is Actually the Norm?<\/strong><\/h2>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;2&#8243; el_width=&#8221;10&#8243;][vc_column_text]<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">There are lengthy, complex discussions on this topic. It\u2019s 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: <\/span><\/p>\n<p>[\/vc_column_text][vc_message message_box_color=&#8221;orange&#8221; icon_fontawesome=&#8221;fa fa-exclamation&#8221;]<\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/www.ted.com\/talks\/dan_pallotta_the_way_we_think_about_charity_is_dead_wrong?language=en\">https:\/\/www.ted.com\/talks\/dan_pallotta_the_way_we_think_about_charity_is_dead_wrong?language=en<\/a><br \/>\nDan Pallota: The way we think about charity is dead wrong<\/p>\n<p>[\/vc_message][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h2 style=\"text-align: center;\"><strong>Costs to Watch Out For<\/strong><\/h2>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;2&#8243; el_width=&#8221;10&#8243;][vc_column_text]<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Now that you know how to approach fundraising costs, it\u2019s time to look at the different expenses involved. We\u2019ll examine them from the perspective of a small startup seeking online fundraising options.<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h3 style=\"text-align: center;\"><span style=\"color: #333333;\"><strong>Platform Fees and Contracts<\/strong><\/span><\/h3>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;2&#8243; el_width=&#8221;10&#8243;][vc_single_image image=&#8221;4783&#8243; img_size=&#8221;1000&#215;300&#8243; alignment=&#8221;center&#8221;][vc_column_text]<\/p>\n<p style=\"text-align: center;\"><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.gofundme.com\/\"><i><span style=\"font-weight: 400;\">GoFundMe<\/span><\/i><\/a><i><span style=\"font-weight: 400;\"> is one of the best platforms for online fundraising<\/span><\/i><\/span><\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">To launch an online fundraising campaign, you need the right technology or platform. But these platforms often cost hundreds\u2014if not thousands\u2014of euros in monthly or annual fees. The most well-known sites charge $400 per month plus 3\u20138% of total campaign revenue. Many also require a lengthy contract binding you for a year or more.<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h3 style=\"text-align: center;\"><span style=\"color: #333333;\"><strong>Implementation Costs<\/strong><\/span><\/h3>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;2&#8243; el_width=&#8221;10&#8243;][vc_column_text]<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Non-profits typically need additional help setting up an online fundraising campaign. It\u2019s rarely as simple as \u201csign up and go.\u201d From initial setup to ongoing issues, hidden costs escalate quickly. Once the allotted support time in your contract is used up, you\u2019ll face high, unpublished hourly rates for further assistance. Integration and adding features also cost extra\u2014factors you must consider when choosing a platform.<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h3 style=\"text-align: center;\"><span style=\"color: #333333;\"><strong>Nonprofit Staff Hours<\/strong><\/span><\/h3>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;2&#8243; el_width=&#8221;10&#8243;][vc_column_text]<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Alongside implementation costs, staff time spent on the campaign adds hidden expenses. Whether they\u2019re integrating systems, troubleshooting, or figuring out an outdated platform, these activities can be extremely time-consuming and costly for your team.<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h3 style=\"text-align: center;\"><span style=\"color: #333333;\"><strong>Limited Feature Offerings and Special Promotions<\/strong><\/span><\/h3>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;2&#8243; el_width=&#8221;10&#8243;][vc_column_text]<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">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\u2019t leverage the platform\u2019s 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\u2014quality and functionality matter!<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h2 style=\"text-align: center;\"><strong>How Non-Profit Organizations Can Save<\/strong><\/h2>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;2&#8243; el_width=&#8221;10&#8243;][vc_single_image image=&#8221;6907&#8243; img_size=&#8221;800&#215;400&#8243; alignment=&#8221;center&#8221; style=&#8221;vc_box_rounded&#8221;][vc_column_text]<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">So how can a charity that spends tens of thousands of euros on technology each year cut costs?<\/span><\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"text-align: center;\"><i><span style=\"font-weight: 400;\">Especially for small projects using fundraising, finding a cost-efficient solution is key to reaching your goal.<\/span><\/i><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h3 style=\"text-align: center;\"><span style=\"color: #333333;\"><strong>Look for High-Quality, Low-Cost Solutions<\/strong><\/span><\/h3>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;2&#8243; el_width=&#8221;10&#8243;][vc_column_text]<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Non-profits tired of overpaying for online fundraising should seek affordable\u2014or even free\u2014alternatives that don\u2019t 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.<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h3 style=\"text-align: center;\"><span style=\"color: #333333;\"><strong>Keep Your Options Open<\/strong><\/span><\/h3>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;2&#8243; el_width=&#8221;10&#8243;][vc_column_text]<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h3 style=\"text-align: center;\"><span style=\"color: #333333;\"><strong>Focus on Easy-to-Use Technology<\/strong><\/span><\/h3>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;2&#8243; el_width=&#8221;10&#8243;][vc_column_text]<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Charities are busy solving some of the world\u2019s biggest problems and are often overworked. Choose technology that is easy to learn and use to avoid unnecessary extra effort!<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h3 style=\"text-align: center;\"><strong>Ask Your Friends, Peers, and Partners<\/strong><\/h3>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;2&#8243; el_width=&#8221;10&#8243;][vc_column_text]<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Online reviews provide valuable insights into different <a href=\"https:\/\/www.marketing-faktor.de\/crowdfunding-plattform\/\" data-wpil-monitor-id=\"1413\">platforms<\/a>. 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.<\/span><\/p>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h2 style=\"text-align: center;\"><strong>Final Thoughts \/ Conclusion<\/strong><\/h2>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;5&#8243; el_width=&#8221;10&#8243;][vc_message icon_fontawesome=&#8221;fa fa-list&#8221;]<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Whatever your fundraising budget looks like, it\u2019s important to step back and analyze your current costs. Then identify where and how you can cut expenses. Keep an eye out for new opportunities and technologies that can help you maximize your fundraising potential while continuing to do good work.<\/span><\/p>\n<p>[\/vc_message][vc_column_text]<\/p>\n<h2 style=\"text-align: center;\"><strong>Free Consultation<\/strong><\/h2>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;2&#8243; el_width=&#8221;10&#8243;][vc_message message_box_color=&#8221;orange&#8221; icon_fontawesome=&#8221;fas fa-exclamation&#8221;]With <a href=\"https:\/\/www.marketing-faktor.de\/en\/crowdfunding-marketing-agency\/\">Marketing Faktor<\/a> we have established ourselves as one of the leading agencies in the German-speaking region for successful crowdfunding campaigns and have completed over 25 projects.<\/p>\n<p>We\u2019re happy to offer you a free consultation to develop an individual strategy for your project <a href=\"https:\/\/www.marketing-faktor.de\/en\/application\/\"><strong><span style=\"color: #3366ff;\">-&gt; Schedule a free consultation.<\/span><\/strong><\/a>[\/vc_message]<div class=\"customblock_display_il\"><a href=\"https:\/\/www.marketing-faktor.de\/en\/application\/\"><img decoding=\"async\" src=\"https:\/\/www.marketing-faktor.de\/wp-content\/uploads\/2020\/06\/Group-1000002123-1.png\"><\/a><\/div>[\/vc_column][vc_column][vc_column_text]<\/p>\n<h2 style=\"text-align: center;\"><strong>Additional Articles<\/strong><\/h2>\n<p>[\/vc_column_text][vc_separator color=&#8221;juicy_pink&#8221; border_width=&#8221;5&#8243; el_width=&#8221;10&#8243;]<div class=\"blog-preview row\"><div class=\"item\" itemtype=\"http:\/\/schema.org\/Blog\"><div class=\"item-sd-container\"><div class=\"photo\"><a itemprop=\"url\" href=\"https:\/\/www.marketing-faktor.de\/kickstarter-kampagne\/\"><img decoding=\"async\" itemprop=\"image\" src=\"https:\/\/www.marketing-faktor.de\/wp-content\/uploads\/2019\/08\/Kickstarter-Kampagne-erstellen-10-Tipps-fuer-die-erfolgreiche-Umsetzung-einer-Kickstarter-Kampagne-bild.png\"><\/a><\/div><div class=\"content\"><a itemprop=\"url\" href=\"https:\/\/www.marketing-faktor.de\/kickstarter-kampagne\/\"><div class=\"title\">Kickstarter Kampagne erstellen: 10 Tipps f\u00fcr die e...<\/div><\/a><\/div><\/div><\/div><div class=\"item\" itemtype=\"http:\/\/schema.org\/Blog\"><div class=\"item-sd-container\"><div class=\"photo\"><a itemprop=\"url\" href=\"https:\/\/www.marketing-faktor.de\/influencer-marketing\/\"><img decoding=\"async\" itemprop=\"image\" src=\"https:\/\/www.marketing-faktor.de\/wp-content\/uploads\/2019\/04\/Spiele-Marketing-10-Tipps-fuer-eine-erfolgreiche-Spiele-Marketing-Strategie-bild.png\"><\/a><\/div><div class=\"content\"><a itemprop=\"url\" href=\"https:\/\/www.marketing-faktor.de\/influencer-marketing\/\"><div class=\"title\">Influencer Marketing: 10 Tipps f\u00fcr ein erfolgreich...<\/div><\/a><\/div><\/div><\/div><div class=\"item\" itemtype=\"http:\/\/schema.org\/Blog\"><div class=\"item-sd-container\"><div class=\"photo\"><a itemprop=\"url\" href=\"https:\/\/www.marketing-faktor.de\/crowdfunding-kosten\/\"><img decoding=\"async\" itemprop=\"image\" src=\"https:\/\/www.marketing-faktor.de\/wp-content\/uploads\/2019\/04\/Crowdfunding-Kosten-Wieviel-kostet-die-Erstellung-einer-professionellen-Crowdfunding-Kampagne-bild.png\"><\/a><\/div><div class=\"content\"><a itemprop=\"url\" href=\"https:\/\/www.marketing-faktor.de\/crowdfunding-kosten\/\"><div class=\"title\">Crowdfunding Kosten: Wieviel kostet die Erstellung...<\/div><\/a><\/div><\/div><\/div><\/div>[vc_column_text el_class=&#8221;block-round-corners&#8221;]<div class=\"rating-form  mr-shortcode\">\t<form id=\"rating-form-4716-1\" action=\"#\">\t\t<h4>Bewerten Sie unseren Artikel<\/h4><div class=\"rating-item mr \" >\t<label class=\"description\" for=\"rating-item-1-1\">Sample rating item<\/label>\t\t\t\t<span class=\"mr-star-rating mr-star-rating-select\">\t\t<i title=\"1\" id=\"index-1-rating-item-1-1\" class=\"dashicons dashicons-star-empty mr-star-empty index-1-rating-item-1-1\"><\/i>\t\t\t\t<i title=\"2\" id=\"index-2-rating-item-1-1\" class=\"dashicons dashicons-star-empty mr-star-empty index-2-rating-item-1-1\"><\/i>\t\t\t\t<i title=\"3\" id=\"index-3-rating-item-1-1\" class=\"dashicons dashicons-star-empty mr-star-empty index-3-rating-item-1-1\"><\/i>\t\t\t\t<i title=\"4\" id=\"index-4-rating-item-1-1\" class=\"dashicons dashicons-star-empty mr-star-empty index-4-rating-item-1-1\"><\/i>\t\t\t\t<i title=\"5\" id=\"index-5-rating-item-1-1\" class=\"dashicons dashicons-star-empty mr-star-empty index-5-rating-item-1-1\"><\/i>\t\t<\/span>\t\t\t\t<!-- hidden field for storing selected star rating value --><input type=\"hidden\" name=\"rating-item-1-1\" id=\"rating-item-1-1\" value=\"0\">\t<span id=\"rating-item-1-1-error\" class=\"mr-error\"><\/span><\/div>\t\t\t<!-- hidden field to get rating item id -->\t\t\t<input type=\"hidden\" value=\"1\" class=\"rating-item-4716-1\" id=\"hidden-rating-item-id-1\" \/>\t\t\t\t\t<div class=\"wp-block-button\">\t\t\t<input type=\"submit\" class=\"wp-block-button__link save-rating\" id=\"saveBtn-4716-1\" value=\"Bewertung abgeben\"><\/input>\t\t<\/div>\t\t<input type=\"hidden\" name=\"sequence\" value=\"1\" \/>\t\t\t\t\t<\/form><\/div>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"author":1,"featured_media":13776,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"rating_form_position":"","rating_results_position":"","mr_structured_data_type":"","footnotes":""},"categories":[956],"tags":[],"class_list":{"0":"post-11973","1":"blog_posts","2":"type-blog_posts","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-crowdfunding-en"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>\u2b50 Fundraising costs: What does a fundraising campaign cost \u2b50<\/title>\n<meta name=\"description\" content=\"Would you like to know the costs for your fundraising campaign? 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Regularly take a step back, review costs, and look where you can save.\r\n\r\n\r\nThe Essentials in Brief\r\n\r\n\r\n \tIf 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.\r\n \tThere 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!\r\n \tTo start an online fundraising campaign, you first need the appropriate technology or a fundraising platform.\r\n\r\n\r\nIf 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\u2014and allocate additional resources accordingly.\r\nThe 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.\r\n\r\nNet Revenue = Gross Revenue \u2013 Fundraising Costs (direct and indirect)\r\n\r\nLeaders 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.\r\nWe 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.\r\n\r\nThe Non-Profit Organization Rulebook\r\n\r\nThe 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\u2014and 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\u2014but 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.\r\n\r\nFortunately, most donors understand that expenses are necessary to achieve long-term results. However, few understand how to evaluate fundraising in relation to those costs.\r\n\r\nBut What Is Actually Normal?\r\n\r\nCosts of 15% are generally accepted as the average for fundraising campaigns. So let\u2019s 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\u2019s not clear where or how a standard applies.\r\nDo 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\u2019s 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?\r\n\r\nThe answer is clear: No, of course not. Yet that\u2019s exactly what we do!\r\n\r\nIn all of these scenarios, the acceptable level must be precisely calculated and considered!\r\n\r\nIf you want to analyze a fundraiser\u2019s performance, you must consider size, maturity, popularity, purpose, the organization\u2019s reach, and many other factors.\r\n\r\nWhy Are Evaluations and Analyses Incomplete?\r\n\r\nWe 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\u2019t lie with auditors\u2014they are simply fulfilling their board\u2019s 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!\r\n\r\nSometimes 2 + 2 actually equals 1.7, or sometimes even 3.1\r\n\r\nHow many board members understand that fundraising costs can be\u2014and are\u2014allocated 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\u2019s 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\u2014and many more\u2014create a huge variable when budgeting costs for a fundraising campaign.\r\n\r\nThe Impact on Charity Organizations\r\n\r\nThe effect of these standards can have dramatic negative consequences\u2014especially 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 \u20ac10,000 in salary, training, etc. They simply believe they can\u2019t afford it\u2014or at least believe they can\u2019t.\r\n\r\nA charity should be measured by the quality of its services and the number of people it serves\u2014not by how low it can keep its operating costs.\r\n\r\nHere\u2019s 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.\r\nA 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\u2014all of which mean sustainable growth and stability. Instead, they debated saving $10,000.\r\n\r\nRisk Is Necessary!\r\n\r\nA second trend has emerged: fear of risk. In traditional businesses, risks are accepted while new ideas are explored. Not every fundraising campaign will succeed\u2014and that\u2019s okay! Some work, others don\u2019t. 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?\r\n\r\nWhat Is Actually the Norm?\r\n\r\nThere are lengthy, complex discussions on this topic. It\u2019s 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: \r\n\r\nhttps:\/\/www.ted.com\/talks\/dan_pallotta_the_way_we_think_about_charity_is_dead_wrong?language=en\r\nDan Pallota: The way we think about charity is dead wrong\r\n\r\nCosts to Watch Out For\r\n\r\nNow that you know how to approach fundraising costs, it\u2019s time to look at the different expenses involved. We\u2019ll examine them from the perspective of a small startup seeking online fundraising options.\r\n\r\nPlatform Fees and Contracts\r\n\r\nGoFundMe is one of the best platforms for online fundraising\r\n\r\nTo launch an online fundraising campaign, you need the right technology or platform. But these platforms often cost hundreds\u2014if not thousands\u2014of euros in monthly or annual fees. The most well-known sites charge $400 per month plus 3\u20138% of total campaign revenue. Many also require a lengthy contract binding you for a year or more.\r\n\r\nImplementation Costs\r\n\r\nNon-profits typically need additional help setting up an online fundraising campaign. It\u2019s rarely as simple as \u201csign up and go.\u201d From initial setup to ongoing issues, hidden costs escalate quickly. Once the allotted support time in your contract is used up, you\u2019ll face high, unpublished hourly rates for further assistance. Integration and adding features also cost extra\u2014factors you must consider when choosing a platform.\r\n\r\nNonprofit Staff Hours\r\n\r\nAlongside implementation costs, staff time spent on the campaign adds hidden expenses. Whether they\u2019re integrating systems, troubleshooting, or figuring out an outdated platform, these activities can be extremely time-consuming and costly for your team.\r\n\r\nLimited Feature Offerings and Special Promotions\r\n\r\nSome 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\u2019t leverage the platform\u2019s 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\u2014quality and functionality matter!\r\n\r\nHow Non-Profit Organizations Can Save\r\n\r\nSo how can a charity that spends tens of thousands of euros on technology each year cut costs?\r\n\r\nEspecially for small projects using fundraising, finding a cost-efficient solution is key to reaching your goal.\r\n\r\nLook for High-Quality, Low-Cost Solutions\r\n\r\nNon-profits tired of overpaying for online fundraising should seek affordable\u2014or even free\u2014alternatives that don\u2019t 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.\r\n\r\nKeep Your Options Open\r\n\r\nAvoid 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.\r\n\r\nFocus on Easy-to-Use Technology\r\n\r\nCharities are busy solving some of the world\u2019s biggest problems and are often overworked. Choose technology that is easy to learn and use to avoid unnecessary extra effort!\r\n\r\nAsk Your Friends, Peers, and Partners\r\n\r\nOnline 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.\r\n\r\nFinal Thoughts \/ Conclusion\r\n\r\nWhatever your fundraising budget looks like, it\u2019s important to step back and analyze your current costs. Then identify where and how you can cut expenses. Keep an eye out for new opportunities and technologies that can help you maximize your fundraising potential while continuing to do good work.\r\n\r\nFree Consultation\r\nWith Marketing Faktor we have established ourselves as one of the leading agencies in the German-speaking region for successful crowdfunding campaigns and have completed over 25 projects.\r\n\r\nWe\u2019re happy to offer you a free consultation to develop an individual strategy for your project -&gt; Schedule a free consultation.\r\nAdditional Articles\r\n"}}}}]}},"multi-rating":{"mr_rating_results":[{"adjusted_star_result":0,"star_result":0,"total_max_option_value":5,"adjusted_score_result":0,"score_result":0,"percentage_result":0,"adjusted_percentage_result":0,"count":0,"post_id":11973}]},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.marketing-faktor.de\/en\/wp-json\/wp\/v2\/blog_posts\/11973","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.marketing-faktor.de\/en\/wp-json\/wp\/v2\/blog_posts"}],"about":[{"href":"https:\/\/www.marketing-faktor.de\/en\/wp-json\/wp\/v2\/types\/blog_posts"}],"author":[{"embeddable":true,"href":"https:\/\/www.marketing-faktor.de\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.marketing-faktor.de\/en\/wp-json\/wp\/v2\/comments?post=11973"}],"version-history":[{"count":10,"href":"https:\/\/www.marketing-faktor.de\/en\/wp-json\/wp\/v2\/blog_posts\/11973\/revisions"}],"predecessor-version":[{"id":13733,"href":"https:\/\/www.marketing-faktor.de\/en\/wp-json\/wp\/v2\/blog_posts\/11973\/revisions\/13733"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.marketing-faktor.de\/en\/wp-json\/wp\/v2\/media\/13776"}],"wp:attachment":[{"href":"https:\/\/www.marketing-faktor.de\/en\/wp-json\/wp\/v2\/media?parent=11973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.marketing-faktor.de\/en\/wp-json\/wp\/v2\/categories?post=11973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.marketing-faktor.de\/en\/wp-json\/wp\/v2\/tags?post=11973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}