The Truth About Fundraising: You Can’t Raise Money Without Spending Some

Let me get straight to it: one of the biggest misconceptions I see over and over again in the nonprofit world is this idea that you can run a successful fundraising campaign—or a whole organization—without spending money.

I get it. When you’re running a nonprofit or community project, especially when it's from the heart, it feels uncomfortable to talk about money. It’s easy to fall into the mindset that every single dollar raised should go directly to "the cause."

But here’s the honest truth:

Fundraising isn’t free. And it shouldn't be.

Why This Myth Hurts Us

Over the years, I’ve worked with so many passionate founders, community advocates, and grassroots organizers who are burning themselves out trying to raise money with zero budget.

They’re doing everything:

• Designing their own flyers in free versions of Canva

• Sending cold emails from their personal Gmail account

• Planning events with no marketing plan, no backup staff, and no cushion

And then they wonder why the donations fall short, or why they only raised $800 when their goal was $10,000. The truth is: without investment—whether in tools, people, or promotion—you’re relying on chance more than strategy.

Let Me Show You What I Mean: A Real Example

Let’s say I’m planning a fundraising campaign to support a local workforce development clothing drive. The goal is to raise $5,000 to distribute business attire for dress for success for teens and young adults.

Here's the breakdown of my modest budget:

Expense	Cost
Flyers & Posters (Design + Print)	$350
Social Media Ads	$250
Email Campaign Tool	$100
Project Lead or Professional Services	$1,200 (15 hrs)
Text Messaging Outreach	$200
Donor Gifts (Bookmarks, Stickers)	$150
Total Expenses	$2,250

If I raise $5,000, that means my Cost Per Dollar Raised (CPDR) is: $2,250 / $5,000 = $0.45

That’s within the acceptable industry range. In fact, the national average for CPDR is:

• $0.20–$0.50 for online campaigns

• $0.50–$1.50 for events

• $0.10–$0.25 for major gifts or peer-to-peer fundraising(Source: AFP Global & Network for Good)

And here's the kicker—by investing that $2,250, I not only raised more money, but also reached new donors, built brand awareness, and created assets (like graphics and email templates) I can reuse for future campaigns.

What Happens When You Don’t Spend

On the flip side, I’ve worked with groups who tried to launch campaigns with $0 upfront cost. No design, no ads, no coordination. Just a flyer in their Facebook group and a few direct messages.

After three weeks of effort, they raised $450. Their CPDR in labor and time was much higher than what they would’ve spent outsourcing or automating. Plus, they were left exhausted and discouraged.

The Nonprofit Starvation Cycle Is Real

There’s a name for this problem in the nonprofit world: the "Nonprofit Starvation Cycle." It’s when organizations underfund their operations and infrastructure to meet unrealistic expectations about how “lean” a nonprofit should be.

But let me ask you something: If Amazon can spend money on marketing and tech to reach their goals, why can’t a nonprofit do the same to serve their community?

As a donor, wouldn’t you rather give to an organization that’s smart, strategic, and scalable—rather than one that’s barely hanging on?

Smart Spending Leads to Sustainable Giving

Let’s stop acting like spending money is the enemy of impact. Spending wisely—on the right tools, platforms, staff, and messaging—is what allows you to grow your reach, deepen your mission, and serve more people.

Whether it’s:

• Hiring someone to write your grant so you can secure $25K

• Paying a designer $300 to make a flyer that actually converts

• Investing in a text platform that lets you reach 1,000 people instantly

…it’s all part of the cost of doing good.

Final Thought

If you're starting a nonprofit or launching a community program, build a budget that honors the real cost of fundraising. Make room for tools, talent, and time. You don’t need a massive marketing department—but you do need a plan that’s realistic.

Raising money is a business function in service of a greater good. Don’t starve your mission trying to look frugal.

Instead, be strategic, be bold, and be funded.

Sources & References

1. Association of Fundraising Professionals. (2023). Fundraising Effectiveness Project. https://afpglobal.org

2. Stanford Social Innovation Review. Gregory, A. & Howard, D. (2009). The Nonprofit Starvation Cycle. https://ssir.org

3. Network for Good. (2022). Digital Fundraising Benchmarks

4. Nonprofit Finance Fund. (2022). State of the Sector Report. https://nff.org

5. Classy. (2023). The State of Modern Philanthropy. https://classy.org