How to Optimize A Google Grant Account: Top Tips & Mistakes

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Whether you’re preparing your program application or have already created several ad campaigns, it’s never too early (or too late!) to optimize your Google Grant account.

By not understanding Google Grant optimization, many nonprofits miss out on the incredible opportunities the Google Ad Grants program provides nonprofits.

Proper management helps you maximize your $10,000 budget, boost the number of conversions made in response to your ads, and keep your account compliant with Google’s grant policies.We’ve compiled our knowledge of Google Grant optimization into these core topics:

Using the tips we share, you’ll be several steps closer to optimizing your Google Grant account and connecting with more prospects. Let’s get started.

Prevent mistakes from bogging down your Google Ad Grants account. Get help optimizing your account by requesting a free consultation.

Avoid These 6 Google Ad Grant Management Mistakes.

Mistakes happen, especially in the confusing world of Google Grant management. Confusion or unfamiliarity with Google’s Ad Grant policies can result in an unintentional violation of Google’s guidelines.

With that in mind, let’s cover the top management mistakes that you can avoid with a little training and a few reminders:

Mistake 1: Failing to Follow The Google Ad Grants Management Policy

Several years after its inception, the Google Ad Grants program created a set of compliance policies that nonprofits must follow to maintain their status in the Google Ad Grants program. These policies include guidelines for your account and the ads you run.

While Google Ad Grant recipients should look over the list of requirements in full, a few standout points are:

  • Having at least 2 ads per ad group
  • Having at least 2 ad groups per campaign
  • Maintaining a 5% CTR each month
  • Not using single-word or generic keywords
  • Having a minimum keyword quality score of 2
  • Enabling at least 2 sitelink ad extensions

The goal of these rules is to enhance the search experience for users and help nonprofits benefit from the program as much as possible.

Mistake 2: Using Generic Keywords

Another mistake in Google Grant management is relying on generic keywords. Short, generic keywords like “fundraising” lack the specificity your ads need to be effective.

Instead, look for specific long-tail keywords. For instance, you might bid on terms like “animal shelter volunteer opportunities” rather than “volunteer opportunities.” These will connect you with more qualified users, and they’re also typically cheaper to bid on.

Additionally, it’s essential to know the difference between generic keywords and broad keywords. Here’s a breakdown of these two terms:

Learn the differences between generic and broad keywords, specified below.

  • Generic keywords are keywords where it is unclear what page someone will find after clicking on them. For example, “video,” is a generic keyword. Will the page have a video to watch? Explain video making principles? Review YouTube videos?
  • Broad keywords are a parameter you can select for your keyword campaigns to influence what types of queries your ad will show up for. For example, you might want the keyword “animal shelter volunteer opportunities” to show up for searches that don’t include the exact keyword, like “animal shelter volunteering” and “volunteering with animals.”

Generic and broad keywords both cast a wide net for searches. However, while broad keywords help you connect with supporters who just phrased their searches a little differently, generic keywords can violate Google Ad Grant policy.

Mistake 3: Using Dirty Keyword Data

Any nonprofit professional who deals with metrics understands the importance of data hygiene. In terms of Google Grant management, cleaning your keyword data is a process that involves pausing or removing irrelevant and low-quality keywords.

Here are some key reasons why you should optimize your keyword data:

  • Keyword traffic may fluctuate over time. Some of the keywords you target will not be relevant year-round. For example, seasonal keywords or those related to specific events do not need to be tracked outside of those time frames.
  • Low-quality keywords can clutter your data. Google assigns a quality score to keywords, calculated based on expected CTR, landing page experience, and ad relevance. Scores below 3 are considered poor quality. Using low-quality keywords is against Google’s policies, and targeting these terms is a waste of your ad budget.

Keywords are a vital part of optimizing a Google Grant account. Not to mention, they play an essential part in your nonprofit’s organic SEO strategy. Start your account optimization process by using search terms with a quality score of at least 3 and removing irrelevant ones.

Mistake 4: Featuring Just 1 Ad Per Group

Nonprofits sometimes make the mistake of featuring only one ad in each ad group, resulting in account suspension. Within Google Grants, individual ads are organized into groups that fall under broader campaigns.

Even if you follow every other compliance step, using only one ad per group is not a viable way to run your Google Grant account. Plus, single ads prevent nonprofits from analyzing performance across different ads, resulting in missed learning opportunities.

Instead, include multiple ads per group. Differentiate your ads by including different ad copy to drive users to click through to your site. Keep an eye on your campaign results to see which ads have the highest click-through rates (CTR), conversions, and site engagement. Finally, replace ads with low CTR with refined versions that drive better results!

Mistake 5: Providing a Poor User Experience

In the context of Google Ad Grants, a poor user experience is often linked to your ad copy, call to action, or linked landing page being misaligned. It’s confusing for website visitors when they click on an ad urging them to join an email list but instead are directed to an online donation page.

This mistake can frustrate potential supporters, deter them from taking the action you want them to, and ultimately impact your ability to optimize your Google Grant account. Think critically about the user experience you’re providing with your Google Ads.

Mistake 6: Neglecting Your Landing Pages

Your nonprofit’s website plays a crucial role in marketing your mission. It’s a place to share all of your resources, content, and marketing material in one convenient location. Plus, the ads you create for your Google Grant account will direct users to your website. In that sense, a neglected website and poorly designed landing pages can do more harm than good.

A poor-quality or irrelevant landing page can negatively impact your keyword quality score. What’s more, higher quality scores often lead to a lower cost-per-click rate, so you’ll receive more traffic for the same price.

Here are a few of the most common landing page issues that nonprofits encounter:

Avoid these 10 common landing page mistakes that can negatively impact your Google Ad Grant, written below.

  • Keywords featured in your ads are not included on the landing page.
  • It’s unclear what supporters are supposed to do on the page.
  • There is a lack of rich, engaging content.
  • The overall website is challenging to navigate.
  • The website loads slowly. Reports show that 53% of mobile users will abandon a website if it takes 3+ seconds to load.
  • The layout is overwhelming and has an unprofessional layout.
  • Broken links signal the website is outdated or even unsecured.
  • The branding is inconsistent and makes the site appear untrustworthy.
  • The site lacks an SSL certificate, meaning it isn’t secure.

If users follow your ad and have a bad site experience, even the best-written ads won’t help you earn conversions. Not to mention, there are also rules in place regarding website quality. For instance, you’ll need to include a clear description of your organization, have an adequate load speed, and feature unique content. Conversely, optimizing your landing pages will keep your quality score up and maximize your chances of reaching and converting qualified users.

Follow the Appropriate Google Grant Account Structure.

After you apply for Google Ad Grants and get approved, you’ll set up your first ad campaign. Before creating your ads, it’s vital to understand the structure of your Google Ad Grant account. That way, you can get a feel for how to set up your campaigns.

Your Google Grant account is broken down into the following:

A Google Ad Grant campaign is structured with an overarching campaign containing multiple ad groups, which each contain multiple ads.

  • Campaigns: These are the largest building blocks of your Google Ads account. They contain multiple ad groups and ads. To optimize your Google Ad Grant account, we recommend assigning a theme to each campaign. For instance, if you work for an animal shelter, you might create a “Volunteer” campaign with keywords related to animal shelter volunteer opportunities in your area. You might have another campaign for “Donations,” “Adoptions,” etc. Themes allow you to easily organize your ads within campaigns.
  • Ad Groups: Think of these as clusters of ads within your campaigns. Ad groups are associated with specific keywords that someone might search related to your cause. Note that Google requires you to have at least two ad groups per campaign.
  • Ads: This is the smallest element of your Google Grant account but is arguably the most important since it consists of the copy and links you’re promoting. Google requires you to have at least two ads per ad group. Google will automatically rotate between these ads and provide you with performance data. For instance, if ad A performs significantly better than ad B, you’ll know to tweak ad B to improve its performance.

One important thing to remember when optimizing your account is not to spread your budget too thin across several ad groups and keywords. You’ll have more success by allocating more funds to a core group of services or resources related to your mission.

While this structure is required for your nonprofit’s Google Grant account, following it will provide you with insightful performance data you can use to produce better ads over time.

Choose the Right Keywords for Your Google Grant Account.

Choosing the keywords you want to target is one of the first steps you’ll take when setting up your first campaign.

Instead of blindly guessing what you think people are searching for and will drive conversions, we’ve created a checklist you can follow to come up with educated keyword choices. As you start optimizing your Google Grant account, here are some dos and don’ts for choosing the best keywords for your cause:

This graphic depicts how to optimize a Google Grant account with effective keywords.

  • DO create a list of keywords that you want to target. Using specific keywords relevant to your organization is an excellent place to start. Leverage Google Keyword Planner to get helpful metrics regarding different keywords, such as search volume trends, average monthly searches per keyword, and bid estimates. You can also leverage Google Trends to explore what people are searching for related to your mission.
  • DO target keywords based on time and geography. These keywords could relate to holidays like, “Christmas gift drive” or location-specific events like, “clothing donation centers in Boston.” Some keywords are seasonal, so focus on them when relevant.
  • DO bid lower on upper-funnel keywords and vice versa. Upper funnel keywords are general search queries that someone higher in the search conversion funnel might search. On the other hand, lower-funnel keywords usually are longer, more specific, and searched by people who are likely to convert.
  • DO clean up your keyword list regularly. Pause any seasonal terms like “Thanksgiving food donations” when they are not relevant, and remove low-quality keywords that do not serve your account.
  • DO use negative keywords to exclude your ads from specific search queries. More than likely, there are search terms you don’t want your ads to display for. Add negative keywords to your ad groups to avoid ranking for those terms. You might also leverage a strategy called “traffic sculpting,” in which you add negative keywords to an ad group to avoid competing with your ads in other ad groups.
  • DON’T use generic and single-word keywords. Examples of this include “volunteers” and “animal shelter.” Not only does Google ban the use of these keywords, but your nonprofit will probably be outbid for generic search terms like these. Instead, try using long-tail keywords such as “animal shelter volunteer opportunities near me.” Long-tail keywords like this involve multi-word phrases and are highly specific.
  • DON’T include branded and nonbranded keywords in the same campaigns. You’ll likely rank organically for branded terms, so allocate your grant money to run ads for nonbranded search terms.
  • DON’T use keywords with a quality score lower than 3. Google scores keywords on a scale of 1 to 10 based on their quality. Keywords that receive a score of 1 or 2 are considered low quality and are not permitted for targeting. These keywords must be removed or paused.
  • DON’T forget to research industry trends and search terms. If like many nonprofits, you’re struggling to maximize spending on your Grant account, try researching new keywords to expand your campaigns. What keywords could you add? When was the last time you looked at Keyword Planner for new ideas? What are your competitors ranking for?

A healthy Google Grant account will have around 25 keywords per group. However, conducting keyword research could help you uncover dozens more valuable keywords.

Optimize Your Google Grant Account’s Ads.

But don’t forget the reason behind all of your optimizing: the ads!There are several best practices to keep in mind when creating your ads. Here are a few to get you started:

  • Create compelling ad copy. It should go without saying that your ad copy is one of the most crucial components of your ads. This is primarily why Google requires you to have multiple ads per ad group—it allows you to see what resonates with people and encourages them to click through. We suggest leveraging keywords in the ad copy to parrot back similar phrases to what users are searching for, including a specific call to action, and using short sentences to keep your ads scannable.
  • Choose the right landing pages. Your landing pages are just as important as your ad copy. It’s where you’ll drive users when they come across your ads and ultimately determine whether they get involved with your nonprofit. Choose the most relevant landing pages for each ad, whether it’s a digital donation page, volunteer registration form, or email newsletter signup form.
  • Have 3 to 5 ads per group. While Google only requires 2 ads per ad group, we recommend using at least 3. Try to vary these ads so you can experiment with different targeting approaches. The ads within each group will rotate, and Google prioritizes the ads that perform the best.
  • Highlight what’s unique about your nonprofit. Avoid blending in by sharing what’s interesting about your organization.
  • Don’t immediately optimize ad rotation for your campaigns. No more than one ad from an ad group can show at a time. The “ad rotation” setting allows you to specify how often Google will serve your ads relative to one another. Within your Search and Display campaign settings, you can choose “Optimize” or “Do not optimize” for this setting. If you’re starting a new campaign, we suggest that you don’t optimize your ad rotation. Instead, keep ads rotating indefinitely to see which messaging works best and optimize rotation manually on your end.

Producing high-quality ads doesn’t have to be overwhelming. Keep these tips in mind to steer your nonprofit’s choices when creating ads.

Need help optimizing your Google Ad Grants account? Meet with the Google Ad Grant pros at Getting Attention. Get a free consultation.

Track Your Google Grant Account’s Conversions and Other Metrics.

As you set up your Google Ads account, sign up for Google Analytics and connect it with your Ad Grant account. The metrics you gather from Google Analytics will help you refine your ads, improve your landing pages, and ultimately optimize your Google Grant account.

For one, Google requires you to track and report on conversions and CTR.

Conversions

For many nonprofits, conversions are the goal of their ads. Conversions measure how many people take the ad’s desired action after seeing it, such as making a donation, registering for an event, or signing up to volunteer.

Here are a few best practices for conversion tracking:

  • Track conversions that are meaningful to your organization. Google Analytics offers different options for conversion tracking. Focus on those that align with your goals. For example, you might track registrations for your upcoming annual gala or donations made during your year-end giving campaign.
  • Set up goals in Google Analytics. Setting up goals in Google Analytics can help you see what impacts your ads’ conversion rate. In addition to enhancing conversion performance, Google Grants accounts are required to set up goals.
  • Take note of which ads are best at leading to conversions. Experiment with the style and wording of your ads to analyze which ones yield the most conversions. From there, you can improve future ads to ensure the best performance from your campaigns.

Google requires Google Ad Grants accounts to track their conversions if applicable. To do so, set up an account within Google Analytics by using these account setup instructions.

Click-Through Rate (CTR)

The Google Ad Grant team uses CTR to measure ad quality. Google interprets a high CTR for an ad as the ad being very relevant and valuable to users. While Google Analytics will automatically calculate each ad’s CTR for you, it can be helpful to understand how it’s calculated manually.

Calculate CTR by dividing the number of people who click your ad’s link by the number of impressions the ad receives. Here’s what the formula looks like:

This CTR formula will help you manage and optimize a Google Grant account.

For example, if your ad is shown to 100 people, and 5 people click the link, your CTR will be 5% for that ad.

If you notice that your CTR is lower than you’d like, here are some ways you can boost that metric and directly optimize your Google Grant account:

  • Pause keywords with a low CTR. Take a look at the keywords that receive the most impressions and pause any with a low CTR. While a keyword may be relevant to your mission, you should focus on keywords that yield results.
  • Improve your ads. Do your ads inspire readers to click through to your website to get involved or learn more about your mission? Think critically about your ad copy and whether you’re pointing users to a relevant landing page.
  • Use A/B testing. One of the great things about Google Ads is that you can rotate between multiple ads for the same keywords. This makes it incredibly easy to see which ad copy performs the best, so you can boost your CTR with each rendition of your ads.

Google requires you to have a 5% click-through rate for each ad. Otherwise, your account will be at risk of being temporarily suspended. But don’t worry! An optimized Google Grant account will easily meet the minimum threshold.

Use Manual Bidding for Your Google Grant Account.

Google recommends that nonprofits automate their bids with Google Ads to save time managing their accounts.

However, we suggest that you start with manual bidding. That way, you’ll have more control over your budget.

If you go with automated bidding, we suggest that you don’t use the “Maximize Clicks” automated bidding strategy, even though it’s Google’s default option. That bidding strategy focuses on clicks rather than conversions (your ultimate goal for your ads). Instead, select the “Maximize Conversions” bidding strategy. This will allow you to be more competitive with bidding and effectively spend more of your ad budget.

Use Targeting and Extensions To Improve Response to Your Ads.

To help your ads reach their intended audience, Google offers targeting settings and extensions to improve your ads’ performance and optimize your Google Grant account.

Targeting

Targeting ads help you streamline your message to address a narrow audience who are highly likely to support your cause. Let’s take a look at these three different ways you can target your ads:

Geotargeting, device type, and scheduling all go into creating targeted ads.

  • Geotargeting. Leverage the geotargeting feature to focus on areas your nonprofit serves. For example, if your nonprofit operates out of New York, ads that appear for Atlanta-based searchers won’t be very effective. However, if many of your donors reside in another area (say Chicago), you may want to target users in that area as well.
  • Ad scheduling. Create an Ad Schedule for all of your campaigns—even those you’re planning on running 24/7. This will help you pinpoint specific times when your ads perform well, so you can adjust your schedule moving forward. To create a schedule, go to one of your campaigns, click on “More” under Settings, hit “Schedule,” select a campaign, choose “All Days,” and save it.
  • Device type. If you’re working with a limited budget, you may want to exclude certain devices from receiving your ads. For example, eCommerce reports show that desktops tend to have higher conversion rates at 4.36%, while mobile has the lowest at 2.95%. To exclude a device from receiving your ads, go to the “Devices” tab, choose a device type, change the bid adjustment to “Decrease” by 100%, and apply the changes. Although, keep in mind that a supporter who sees your ad on mobile may decide to explore your site later on their desktop!

You want your ads to be shown to individuals who are likely to convert, so you don’t waste your grant money or negatively impact your ads’ performance. These targeting features will help you connect with likely prospects.

Ad Extensions

Ad extensions provide users with more information about a nonprofit’s services, programs, and mission. They help expand the ad listing, ensure it’s as useful as possible, and take up more ad space on the search engine results page.

By providing information that matches the user’s intent, ad extensions directly impact your ads’ CTR.

Some of the most commonly used ad extensions include the following:

Here's an example of extensions being used to optimize a Google Grant account.

  • Sitelinks: Create mini-ads within your ads that link to other pages on your site.
  • Callout Extensions and Structured Snippets: Include additional plain text within your ads to emphasize key points (great for including extra detail that wouldn’t fit in the main ad’s text).
  • Price: Quantify the donation amount or cost of services that a prospect would need to know (e.g., veterinary services, event ticketing price, and so on).
  • Location and Call: Display your organization’s address and phone number. Users will be able to click the number and call you directly.

Ad extensions give users with more ways to interact with your cause. Note that your ad extensions won’t always show up with your ads. Instead, Google will show them when the extension (or combination of extensions) is expected to improve the ad’s performance and when your ad’s position and Ad Rank are high enough to show extensions.

Your best bet is to include the most relevant ones for your ads, increasing the likelihood that they’ll be displayed.

Follow Website Compliance Guidelines

Like with most other aspects of the Google Ad Grants program, there are specific rules for your website to follow. An insufficient, unprotected, or otherwise useless website can lead to a temporary suspension of your Google Grant account.

Here are the basic rules you’ll need to follow to ensure your website adheres to Google’s basic eligibility guidelines:

  • You must own the domain. Your nonprofit must own the rights to landing pages linked in your ads. If this landing page is a donation-hosting service, it must belong to one of these pre-approved sites.
  • Add additional domains to your account. If you plan to link to other domains with Google Grant ads, add them to your account first. This way, Google is aware that your nonprofit owns these domains.
  • Maintain high-quality websites. Any domains used must be high-quality web pages. Valuable web pages have several important factors that we’ll cover in the next section.
  • Avoid any commercial activity that does not align with your mission. Commercial activity like selling products, services, or consultations can’t be the sole purpose of your website. Limited commercial activity is allowed, provided it aligns with your mission—think selling t-shirts with your nonprofit’s logos to help raise money for your cause.

Following these basic compliance regulations will help keep your Google Grant account compliant.

Let A Google Grants Professional Optimize Your Google Grant Account.

Working with a professional agency can take the weight off your shoulders when it comes to optimizing a Google Grant account. Professionals provide tailored services that help you set up and manage your Google Ad Grants account as efficiently as possible.

Here at Getting Attention, we strive to help nonprofits make the most of their grant money every month. We make the process simple and easy to understand from completing your application to tracking your data. Our services include:

Getting Attention provides the following services listed below to help optimize your Google Ad Grant.

  • Google Grant Applications: The Google Grant application process can be intimidating. The experts at Getting Attention are here to help guide you through the process and make sure your account is accepted on the first try.
  • Google Grant Hygiene: Data is crucial for optimizing your Google Grant account. Getting Attention is ready to help you clean up your data and make analysis more efficient. Whether you need to remove irrelevant keywords or outdated information, our experts are ready to step in.
  • Keyword Research: If you’re feeling lost when choosing keywords, let our agency handle the research for you. We can ensure that your account tracks the most relevant and effective keywords to extend your ads’ reach.
  • Google Grant Account Reactivation: With so many compliance rules, suspension can happen, and our team is one of the best resources for getting your account back up and running.

Our goal is to optimize Google Grant accounts so that nonprofits like yours can reinvest focus into their worthwhile missions. To learn more, contact our team to request a free consultation today. Plus, we’re happy to discuss our expertise in other areas. That way, you’re receiving the most comprehensive support possible.

Get help managing your Google Ad Grants account. Discover how Getting Attention can optimize your account. Get a free consultation.

Look into Google Ad Grants Training.

Even if you outsource work to a professional Google Grants manager, it never hurts to look into training. Google has plenty of free training resources that can help you optimize your Google Grant account and maximize ad performance. Not to mention, third-party sites also provide resources and advice based on their experience.

You can start your training by exploring our blog and checking out our top recommended training courses.

If you have any unanswered questions about managing your Google Grant account, our team of professionals is here to help. Reach out and request a free consultation where we can discuss your needs.

Google Grant Optimization Checklist

Now that you’ve learned some helpful tips for optimization, it’s time to put them to use. We’ve created a checklist to help you keep track of the essentials of successful account optimization:

This checklist covers each step needed to optimize a Google Grant account.

Use our checklist below to make sure you don’t overlook anything when optimizing your Google Grant account.

Account Structure

  • Center campaigns around themes
  • Include 3-5 ad groups per campaign
  • Have 3-5 ads per ad group

Keywords

  • Include approximately 25 keywords per ad group
  • Choose keywords relevant to your mission
  • No generic or single-word keywords
  • Target keywords based on time and geography
  • Separate branded and nonbranded keywords into different campaigns
  • No keywords with quality scores below 3
  • Use negative keywords to avoid ranking for those terms

Conversions

  • Track conversions in Google Analytics
  • Set up conversion goals in Google Analytics
  • Track conversions that are meaningful to your organization
  • Adjust ads based on which ones increase conversions

Ads

  • Use keywords in the ad copy
  • Include specific calls to action in the ad copy
  • Highlight your mission
  • Manually rotate your ads for new campaigns

Metrics

  • Track meaningful conversions for your nonprofit
  • Use A/B testing to determine what drives conversions and clicks
  • Have at least 1 conversion per month
  • Maintain a 5% CTR each month

Bidding

  • Use manual bidding when possible
  • If you set up automated bidding, select the Maximize Conversions option

Targeting

  • Narrow down your target audience with geotargeting
  • Pinpoint specific times when ads perform well with ad scheduling
  • Adjust which devices your ads can be viewed on
  • Link to other pages within your ads by using sitelinks
  • Include additional plain text with callout extensions and structured snippets
  • Include the cost of services with the price extension
  • Display your address and phone number with the location and call extensions
  • Capture leads with the lead form extension

Website Maintenance

  • Ensure you own your nonprofit’s domain
  • Include one focus per page
  • No commercial activity that’s related to your mission
  • Include ad keywords on your landing pages
  • Create clear calls to action
  • Ensure the site is mobile accessible

Partnering with a Google Ad Grants agency

  • Google Grant applications
  • Account hygiene
  • Keyword research
  • Account reactivation

Training Resources

Getting accepted into the Google Ad Grants program is an exciting moment. Keeping up with the ins and outs of account management can be a challenge, but this streamlined checklist should help. Download a PDF version of this checklist for quick access in the future.

Final Thoughts on Optimizing A Google Grant Account

Optimizing a Google Grant account isn’t a one-and-done sort of deal. Rather, someone will need to actively manage your account, check keyword data, refine your ads, and more.

To make the most of your account, implement the tips covered in this ultimate guide. If you’re seeking more assistance with optimizing your Google Ad Grant account, reach out to the team at Getting Attention to set up a free consultation today. We’re happy to discuss your needs so that you can get more out of the program each month.

In the meantime, explore the following additional resources to continue learning about Google Ad Grants:

Ready to optimize your Google Ad Grant account. Getting Attention's team is ready to help with every part of your ads. Get a free consultation today.

With recent changes to Form 990 and donor disclosure requirements, what's required of your nonprofit?

Form 990 Schedule B & Donor Disclosures: What’s Required?

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The nonprofit regulatory landscape is constantly changing. New requirements can appear over time, and others might disappear, leaving your nonprofit the task of figuring out exactly what’s required in order to stay compliant all while securing funding, engaging donors, and running programs.

Recent developments regarding the Form 990 Schedule B, major donor disclosures, and how it all relates to state-level nonprofit compliance are a perfect example.

You’re already familiar with IRS Form 990—a simple report that gives the IRS a birds-eye view of your organization’s financial activities over the past fiscal year. But what’s the Form 990 Schedule B? Is it required for your nonprofit? If you’ve provided a complete Schedule B to state charity offices when renewing your registrations in the past, a recent Supreme Court ruling has likely changed what’s required of your nonprofit.

It sounds like a lot to take in, but we’ve got you covered. This quick guide will explain everything you need to know about this important development in the nonprofit compliance world.

Understanding the Form 990 Schedule B

The Form 990 Schedule B is an additional document that your nonprofit may have been required to complete and return alongside your main Form 990 (or an EZ variant) in the past.

Schedule B requires you to disclose donors who contributed more than $5,000 or an amount larger than 2% of your total donation revenue in the past fiscal year. In other words, it asks nonprofits to disclose the names and contact information of their mid-level and major donors.

The purpose of collecting this information is that it aids with fraud detection at the federal level. This is why several states have historically also required Schedule B as part of their charitable solicitation registration processes for nonprofits. However, these requirements have quickly changed following a 2021 Supreme Court ruling.

Americans for Prosperity Foundation v. Bonta (2021)

The Supreme Court’s ruling in the 2021 Americans for Prosperity Foundation v. Bonta case has effectively eliminated the use of Form 990 Schedule B in state-level charity registrations.

Americans for Prosperity Foundation and the Thomas More Law Center challenged the state of California’s requirement that nonprofits submit a completed Schedule B and disclose their major donors on the grounds that doing so violates donors’ first amendment rights to free speech and assembly. They argued that it was an unnecessary collection of personally identifiable information. California defended its collection of Schedule B information as a means of fraud detection and consumer protection.

The Supreme Court ruled 6-3 in favor of Americans for Prosperity Foundation, finding a lack of compelling evidence that donor disclosures drive greater fraud detection results at the state level. The Court’s majority opinion stated that subpoenas and audits remain effective and are potentially more efficient options for state investigations than broad data collection through Schedules B.

The decision struck down California’s regulation requiring nonprofits to submit a Schedule B as part of their charitable solicitation registration with the state’s Attorney General’s office.

What it Means for Your Nonprofit

So what does this mean for your nonprofit and its compliance requirements? There are two key takeaways:

  • As of the time of writing (April 2022), nonprofits are no longer required to provide Form 990 Schedules B as part of their registration or renewals process with states that previously required them. These states include New York, New Jersey, California, and Hawaii, all of which have either removed Schedule B requirements or stated that they will not enforce these requirements since the 2021 ruling.
  • Importantly, you are still required to file a Schedule B alongside your Form 990 at the federal level if you have received large gifts that fall under its guidelines. The IRS requires this information for fraud detection purposes, but all personally identifiable information is redacted from the publicly available documents that are published.

These changes only affect nonprofits that were already operating and registered in the states listed above, but they do underscore the need for constant compliance and effective recordkeeping.

Even as states remove requirements for donor disclosures, it’s important to remember that they still have a public duty to prevent charity fraud and protect consumers, which is the entire purpose of the solicitation registration process in the first place. Thorough records on all donations you receive in a secure, organized CRM will be your best bet for maintaining transparency and protecting your mission should an investigation ever occur.

More broadly, these changes reflect the continued importance of staying aware of changing nonprofit requirements.

The landscape is constantly shifting, so understanding your requirements at the federal level, state level, and where they intersect and change over time is essential. And as nonprofits increasingly grow into the world of digital marketing and explore new revenue streams, unfamiliar compliance and privacy requirements will only become more important.

By filing the necessary documentation, renewing registrations, hiring registered agents as needed, and more, you’ll safeguard your mission for years to come. The help of attorneys and nonprofit compliance experts is also invaluable whether you’re navigating a new situation or simply want to take a proactive approach to compliance—an approach that’s highly recommended considering the relative speed at which regulatory changes can occur.

Franklin Asongwe, Labyrinth

Author: Franklin Asongwe, Marketing Director, Labyrinth Inc.

Franklin Asongwe is the Marketing Director of Labyrinth, Inc. — the leading provider of state fundraising registration support and other nonprofit compliance services. He’s passionate about helping nonprofits better understand the complex compliance landscape so that they can keep pursuing their missions safely and sustainably.

Learn how to find more support for your nonprofit by securing corporate sponsorships in this guide.

Securing Corporate Sponsorships: How to Lock Down Support

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As a nonprofit organization, you’re always on the lookout for new and improved ways to secure revenue for your cause. One of the most underutilized sources of nonprofit funding is corporate giving⁠—and within that subcategory, corporate sponsorships can maximize your fundraising potential.

But what exactly are the opportunities available, and how can your team go about securing corporate sponsorships to help fund your mission? This guide will provide you with everything you need to know by exploring the following key topics:

Partnering with for-profit businesses can often be one of the most lucrative and impactful fundraising strategies for organizations of all shapes, sizes, and causes. And don’t forget⁠—participating companies benefit greatly as well. Let’s start with the basics.

Click through to learn more about the Google Ad Grant, which you can use to supplement your corporate sponsorship as an additional way to secure revenue.

What Are Corporate Sponsorships?

Corporate sponsorships are an extremely popular form of corporate giving in which companies provide funding or resources to nonprofit partners. This often takes place in the context of a particular fundraising event, campaign, or project.

For organizations looking to diversify their funding sources by exploring new streams of revenue, sponsorships can be a great place to start. And there are different types of corporate sponsorships available, too⁠! These include:

This image and the text below describe the three types of corporate sponsorships you can secure: financial, in-kind, and media.

  • Financial: A business provides a monetary contribution to a nonprofit.
  • In-kind: A business provides donated goods or services to a nonprofit (these are typically, but not always, related to the business’s industry).
  • Media⁠: A business funds the promotion of a nonprofit’s upcoming event through paid advertising channels.

Regardless of the kind of sponsorship agreement between an organization and a corporate partner, the common denominator is that the nonprofit receives some sort of support from a for-profit business.

Who Benefits From Corporate Sponsorships?

Corporate sponsorships are mutually beneficial relationships, with both parties benefiting significantly from participating in the partnership. Let’s take a look at key advantages for the two primary stakeholders in a corporate sponsorship relationship:

Alt text: This graphic and the text below explain the benefits of securing corporate sponsorships for both nonprofits and businesses.

  • Companies: Companies that sponsor nonprofits as part of their corporate social responsibility programs receive elevated brand reputations, public relations boosts, higher levels of employee engagement, and tax benefits.
  • Nonprofits: Organizations receive increased funding for their causes through corporate donations, along with unique co-marketing opportunities and the potential for lasting relationships with businesses.

In some forms of corporate giving, there are even more beneficiaries to the partnerships⁠—for example, the companies’ employees or the nonprofits’ donors. Employees may feel an increased sense of pride in the businesses they work for when their employers take part in philanthropy. And donors are often provided with new ways to support their favorite organizations⁠—such as through an upcoming event sponsored by a local business.

The Four Stages of Securing Corporate Sponsorships

You understand the advantages of corporate sponsorship participation, and you’re ready to dive in. But where exactly should you start? We’ve broken the process down into four simple steps!

Follow these four steps to master the process of securing corporate sponsorships.

1. Identify Potential Corporate Sponsors

Before you can secure corporate sponsors for your cause, you need to determine who your ideal sponsors are. Although your ideal sponsor will vary depending on your mission, campaign, and funding priorities, you should consider:

  • Companies with existing philanthropic initiatives. Identify companies with strong corporate social responsibility (CSR) programs, as they are more likely to have the resources and stakeholder buy-in to support causes like yours. Examine their websites and annual reports, looking for sections that specifically mention CSR software, philanthropy success stories, and community engagement.
  • Local businesses in your community. Local businesses often love giving back to the communities in which they’ve established their roots. Reach out to mom-and-pop shops in your neighborhood for potential sponsorship opportunities.
  • Companies you already have connections to. Do your donors, volunteers, or board members work for philanthropically-minded companies? Has a particular business supported one of your organization’s fundraising efforts in the past? Do a number of supporters work for the same generous employer? These existing connections can help you get your foot in the door with potential sponsors.
  • Companies whose missions align with your own. Companies with values that overlap with yours will be more inclined to support your cause. For example, if you run an animal rescue, you might want to reach out to pet supply retailers.

Compile a list of prospective corporate sponsors to provide your solicitation team with a wide array of possibilities and improve your chances of success.

2. Cultivate Business Relationships

Like with any donation request, it’s important to have an existing relationship with potential contributors before jumping into the actual solicitation of funding.

To begin developing relationships with corporate partners, consider:

  • Asking a member of a prospective sponsor’s team to sit down and chat with someone from your organization and discuss missions, values, and priorities.
  • Inviting a member of a prospective sponsor’s team to visit your organization’s facility for a behind-the-scenes tour.
  • Providing a prospective sponsor with fundraising impact materials such as your annual report, Form 990, and more.
  • Encouraging an employee of a prospective sponsor to make a warm introduction between your organization and the company from which you’re seeking sponsorship.
  • Taking an interest in a prospective sponsor’s business, strategies, and goals.

Not only are you likely to win more corporate sponsors this way, but it also helps establish a sense of familiarity with each party and makes the sponsorship feel relational rather than solely transactional.

3. Create a Value Proposition

Your organization’s value proposition is essentially the answer to the business asking, “What’s in it for me?” One of the most common types of value propositions is that of co-marketing efforts and improved brand reputation. Here’s an example:

Let’s say that Linda’s Flower Mart provides funding for a fundraising event for a local nonprofit, Midtown Youth Center. To provide value for Linda’s Flower Mart, the company’s logo is featured in all marketing materials for the event as a key sponsor, ensuring a wider audience is exposed to her company and will consider her services for future flower needs. Midtown Youth Center then promotes its upcoming fundraiser through all of its marketing and communication channels.

The day after the fundraising event, Linda meets a new group of eager customers who report that they love shopping at local businesses that continue to give back to their own communities.

This value proposition is vital for securing corporate sponsorships, but keep in mind that the benefit to the corporation should not outweigh the benefit to the organization. If it does, the IRS may classify income as “unrelated business income” (taxable) as opposed to a “charitable contribution” (tax-free).

The quality of the co-marketing benefits you offer can make a big difference to sponsors. To improve your value proposition and secure more sponsors, sign up for the Getting Attention newsletter to get marketing tips in your inbox!

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4. Make Your Corporate Sponsorship Ask

Now it’s time to make the actual request—and this can be the most nerve-wracking step in the process for many fundraisers. As you get to this point, consider the following best practices:

  • Conduct several practice runs of sponsorship request conversations before you meet with the businesses in question.
  • Have your corporate sponsorship conversations in person when possible. This makes the meeting more personal and helps put a face to your organization.
  • Recruit volunteers to make the actual sponsorship ask! These individuals are not being paid to say good things about your organization, and that can make a difference for businesses considering contributing.
  • Offer various sponsorship tiers that align with different-sized budgets. Many businesses will be interested in supporting your efforts but might not be able to swing the hefty price tag of a top sponsorship package.
  • Emphasize your value proposition. This is the tangible benefit offered to businesses considering a partnership and should be the main focus of your conversations.

As you start these conversations, it’s also essential that your team knows how and when to take no for an answer. Some companies simply won’t be able to contribute right now⁠—but if you leave your conversation on a positive note, they’ll be more likely to consider partnering with your organization in the future.

What does corporate sponsorship look like?

All of these strategies sound good in theory, but what does corporate sponsorship look like in the real world? There are several examples from well-known companies, such as:

This image shows three examples of corporate sponsorships, which are discussed more in the text below.

  • Google: If you know anything about Getting Attention, you’re already familiar with Google’s corporate philanthropy program! Google helps nonprofits reach wider audiences through Google for Nonprofits, which gives these organizations access to the Google Ad Grant application and many more collaboration and productivity tools.
  • Microsoft: Microsoft matches its employees’ gifts up to $15,000. Their volunteer grant has no minimum requirement for the number of hours volunteered and donates $25 per hour served.
  • Apple: According to Apple’s impact report, the company donated over $250 million in 2021. Apple also has cause-specific initiatives through which the company makes values-based investments.

For examples that are closer to home, look to your local charities. Their websites and social media promotions might highlight a local business, which is a huge indicator of corporate philanthropy! For example, if a local animal shelter was able to offer free adoptions one weekend because of a bank’s contribution, you might inquire more about the bank’s charitable donations.

How to Secure More Corporate Sponsorships: FAQ

Still have questions about securing corporate sponsorships for your nonprofit? Here are answers to some common questions organizations have throughout the process.

What should I do after securing a corporate sponsorship?

After securing corporate sponsorships, focus on solidifying your relationship with the company. Share resources about your organization’s work, additional engagement opportunities, mission success stories, and more. Make sure both teams are on the same page with what exactly the sponsorship entails, including logistics surrounding funding transfers.

Once the sponsorship concludes, continue developing your partnership with the company. Maintaining a personal relationship is essential for showing your appreciation for the company’s support. And as an added bonus, they’ll likely be more inclined to partner with your team on future endeavors!

How should we acknowledge corporate sponsors?

The ways in which your organization acknowledges its sponsors will depend on your nonprofit itself, the event or campaign being sponsored, and the company you’re partnering with. For example, if you’re hosting a community event, you might acknowledge a sponsor by providing them with a tent or other area to promote their business.

Keep in mind that some forms of public acknowledgment may be specifically laid out in the sponsorship agreement. This might include:

  • Social media promotion
  • Website inclusions
  • Space in tangible marketing materials
  • Branded event announcements
  • And more

If you want to branch out and acknowledge your sponsors using an additional free marketing channel, consider utilizing the Google Ad Grant. With this resource, you can place free advertisements highlighting your campaign and your sponsor at the top of relevant Google search results pages.

 

What are other top corporate fundraising opportunities?

If a company has shown particular interest in philanthropy before, it might be increasingly inclined to participate in other types of corporate sponsorship. If your team is interested in additional corporate giving programs, we recommend the following:

  • Matching gifts
  • Volunteer grants
  • Employee donation stipends
  • Payroll deductions
  • Community grants

Be sure to note that various forms of corporate giving opportunities often tend to overlap! For instance, studies show that 85% of the top matching gift companies also offer volunteer grant programs for their employees.

Not to mention, your organization can also work directly with a company to craft a dedicated partnership that aids both teams in reaching their goals. One of the best examples of this would be a custom matching gift program. Even if a company doesn’t offer a widely available donation-matching initiative, its leadership may decide it’s ready to test the waters with a limited-scale program—such as by matching employee donations solely to your nonprofit cause.

Additional Corporate Sponsorship Resources

Now that you have a solid foundation for how to locate opportunities and propose partnerships, you’re ready to get started. But your efforts in securing corporate sponsorships on behalf of your organization are just beginning!

Interested in learning more? Explore other top corporate fundraising resources here:

Getting Attention can help you leverage the Google Ad Grant to secure more corporate sponsorships. Click here to schedule a free consultation.