Nonprofit organizations have long relied on Google Ad Grants (Google Ads) to reach potential donors, advocates, and volunteers. As digital advertising became an essential nonprofit marketing tool, Google’s ad platform gifted charities thousands of dollars in (free) exposure annually. Nonprofit PR agencies and in-house PR professionals at 501(c)3 organizations should know about recent changes to Google’s advertising policies, which can have significant impact. 

With rising competition from alternative search platforms and evolving trademark rules, nonprofits now face an uphill battle in securing funding through digital marketing. As online advertising continues to evolve, it’s crucial to assess how these changes impact the nonprofit sector and what solutions can help ensure these organizations continue their vital work without financial hindrances. 

Google’s Ad Policy Change 

In 2023, Google revised its advertising policies to allow a broader range of advertisers—including lesser-known search engines—to bid on trademarked keywords. Previously, only resellers and informational pages could use third-party trademarks and under strict guidelines. Now, nonprofits that rely on their brand name and mission to attract donors find themselves in a more competitive ad auction environment, making it harder to maintain visibility. 

According to The New York Times, this policy shift has had a direct impact on many charities, as they must now compete against a wider pool of advertisers for the same keywords. With increased competition for nonprofit-related keywords, even nonprofits that rely on Google Grants may find it harder to compete and attract the donors and supporters need to make an impact. This has driven up the cost of bidding on nonprofit-related terms, leading to fewer click throughs for the same grants budgets. 

Google Ad Grants

Google Ad Grants is a program that provides eligible nonprofits with up to $10,000 per month in free advertising credits, allowing eligible nonprofits to run Google Ads without having to compete in a traditional paid auction environment. While this program has been instrumental in helping charities increase their online presence, the recent policy shifts have raised concerns about whether these grants will continue to be as effective. 

Google Ad Grants accounts must adhere to strict performance requirements, including maintaining a minimum click-through rate and avoiding overly generic keywords/phrases. If nonprofits struggle to achieve these benchmarks due to rising competition, they risk losing their grant funding altogether. This means that smaller organizations, which often depend heavily on the program, may be disproportionately affected by these changes. 

Furthermore, the $2 maximum bid cap imposed on Google Ad Grants participants limits their ability to compete for high-value keywords. Since ad costs are rising, this restriction could make it even more difficult for nonprofits to maintain their grants. If Google does not adjust the Grants program to account for the changing ad environment, many charities will likely find themselves disadvantaged. 

The Rising Cost of Online Fundraising

Increased competition for nonprofit-related terms has led to a dramatic escalation in advertising costs. Some organizations have reported doubling their ad spend just to achieve the same visibility they had before this (latest) policy change. 

For many charities, this presents a significant financial burden. Unlike larger for-profit businesses, which can adjust their pricing or revenue models to accommodate higher marketing costs, nonprofits rely on donations and grants. Every additional dollar spent on digital advertising means one less dollar available for direct services including those that feed the hungry, fund medical research, or provide educational resources, such as textbooks or free curricula. 

A study by the Nonprofit Technology Network (NTEN) found that digital advertising costs have risen by an average of 30% since Google’s policy shift, disproportionately affecting smaller charities that lack the financial resources to compete in high-stakes bidding wars. For grassroots organizations and local nonprofits, these increased expenses threaten their ability to sustain operations and reach the communities they serve. 

The Ethics of Competitive Advertising 

Beyond the financial strain, Google’s policy shift has also raised additional concerns. Some advertisers have begun using misleading tactics to bid on nonprofit names, diverting potential donors away from legitimate causes. In some cases, for-profit companies use a nonprofit’s name in their ad copy to capture clicks, creating confusion among donors. 

Google has stated that ads are clearly labeled and that policies are in place to prevent deceptive advertising. Since Google’s track record for giving back is indisputable, and their knowledge of all that happens on the platform is unmatched, we’re hoping the tech giant will ensure users are able to distinguish between an official nonprofit ad and a competing one. 

As digital advertising increasingly influences charitable giving, and the new administration’s policies on nonprofits are questionable at best, the support nonprofits receive by Google is imperative. 

What Can Nonprofits Do?

Google’s ad policy changes were designed for a reason, which only the search engine fully comprehends. This means nonprofits will require even more guidance from PR firms and digital marketing agencies. Google may consider revising its Grants program to allow more flexibility for nonprofits struggling with increased competition.

Raising bid caps, adjusting performance requirements, or offering additional grant funding for highly competitive keywords can help ensure that charitable organizations remain visible despite the policy changes. Stricter transparency requirements for competing ads can also help prevent donor confusion. Currently, some advertisers bid on nonprofit names and redirect users to different sites, often with minimal disclaimers. Requiring clearer labeling and prominent disclosures on paid ads would make it easier for potential donors to distinguish between official nonprofit advertisements and those from other entities. 

In the meantime, nonprofits, especially those with larger budgets, should explore alternative marketing strategies to reduce their reliance on search ads made possibly by Google. Social media marketing, email marketing, and direct partnerships with corporations or influencers can help organizations engage their audiences without having to compete in costly ad auctions. Additionally, investing in organic content, earned media, and community-driven outreach can provide long-term benefits while decreasing dependency on digital advertising. 

By diversifying outreach efforts, nonprofits can establish a more sustainable digital marketing strategy while advocating for policy changes that better support their missions. Balancing paid and organic strategies will be essential in ensuring that nonprofits can continue their vital work without unsustainable financial restrictions. 

As a leading PR agency, Rosica Communications positions our nonprofit clients as leaders in their field, gaining national and regional reach for the amazing work they’re doing. We provide a breadth of knowledge in the nonprofit space and services including media relations, positioning and messaging, media and speaker training, social media marketing, and crisis communications. 

Contact Rosica’s leadership team for a uniquely tailored PR strategy for your nonprofit.