Nonprofits often hesitate to invest in a marketing consultant because the return isn’t as obvious as it is in the for-profit world. But that doesn’t mean ROI is impossible to measure. It simply means nonprofits need to define success on their own terms before hiring anyone. Here’s how to do that:
Start by Defining What “Return” Means for Your Nonprofit
Before you can calculate ROI, you need to agree on what you’re actually trying to achieve by hiring a nonprofit marketing consultant. For most nonprofits, marketing ROI isn’t just about dollars raised. It might include:
- Increased donor acquisition or retention
- More volunteer sign-ups
- Email subscriber growth
- Greater event attendance
- Improved awareness in the community or communities you serve
Sit down with your internal team before engaging a nonprofit marketing consultant and identify two or three of your top priorities.
Establish a Baseline
You can’t measure improvement without knowing your starting point. Pull together data from the last 12–24 months, including donation totals, email open rates, social media engagement, number of email subscribers, website traffic, and donor retention rates.
A good consultant will ask for this information early on, but even if they don’t, gather it anyway so you have it for your own records. Without a baseline, any “growth” a consultant reports later is just a claim, not evidence.
Set Clear, Measurable Goals with the Consultant
Once you’ve hired a marketing consultant, work with them to translate your priorities into specific, measurable goals. Instead of a generic goal like “improve our marketing,” aim for something like “increase monthly donors by 15% over six months” or “grow our email list by 500 subscribers by year-end.”
Specific goals make it far easier to evaluate whether the money you spent with your nonprofit marketing consultant was money well spent.
Calculate the ROI of Your Nonprofit Marketing Consultant
To get a true ROI figure, compare the consultant’s cost against the financial value generated. For example, if a consultant costs your nonprofit $20,000 over six months and helps generate an additional $60,000 in donations directly tied to their campaigns, your ROI is 200%.
Be honest about attribution, though. Not every dollar raised during the engagement is necessarily the result of the consultant’s work. Consider other factors that may have influenced donations, such as seasonal giving patterns, major fundraising events, or other marketing efforts.
Factor in Non-Financial Value
Some of the benefits of working with a marketing consultant are harder to quantify but still matter to your nonprofit. Improved brand consistency, more compelling messaging, better internal marketing processes, or a more confident staff can all provide long-term benefits.
Don’t discount these qualitative wins when evaluating the overall value of your partnership. Financial ROI is important, but it isn’t the only measure of whether a nonprofit marketing consultant is helping your organization grow.
Review Regularly, Not Just at the End
Don’t wait until the contract ends to evaluate ROI. Check in monthly or quarterly to review progress and results. This allows you to adjust your marketing strategy early and avoid spending money on tactics that aren’t working.
Regular check-ins also help hold your consultant accountable and ensure they continue working effectively on behalf of your nonprofit.
Conclusion
Investing in a nonprofit marketing consultant—especially for the first time—can be daunting. It can involve a relatively large financial outlay with no guaranteed return. But when you have a clear way to determine ROI, you can make a more informed decision about whether the partnership is truly advancing your nonprofit’s mission.
