Description

Nonprofit leaders constantly hear that diversifying revenue streams is the key to financial stability. But what if that advice isn't the whole story?

Research shows that 90% of high-growth nonprofits rely on a single dominant funding source. Does that mean nonprofits should double down on one funding stream—or is there a smarter way to approach fundraising?

In this episode, Eric and Jonathan break down the real reasons some nonprofits scale while others stay stuck, the risks and rewards of focusing on a single revenue source, and how to strike the right balance between specialization and financial security. If your organization has struggled to gain traction, this conversation is a must-listen.

Episode Highlights:

• [00:00] Introduction – The surprising secret behind high-growth nonprofits
• [02:06] Diversification vs. specialization – Why common advice might be flawed
• [04:52] The power of focus – How narrowing your fundraising can fuel growth
• [08:15] Case Study: American Kidney Fund – A nonprofit that 10X’d revenue by shifting its funding strategy
• [12:43] The scaling challenge – Why growing nonprofits struggle with funding transitions
• [15:59] The reality of small donor programs – Why they’re harder to scale than many expect
• [18:51] When to kill an experiment – How to know when a funding strategy isn’t working
• [24:09] Deep partnerships vs. shallow diversification – The value of transformational funders
  [26:54] Should you grow at all? – Rethinking what growth means for your nonprofit

Resources:

• Article - SSIR - How Nonprofits Get Really Big
• Article - SSIR - Ten Nonprofit Funding Models
• Article - Why Social Impact Brands Struggle to Attract, Grow, and Retain Revenue
• Article - How to Create the Conditions for Sustainable Revenue
• Article - From Starvation to Sustainability: Rethinking Revenue in Social Impact
• American Kidney Fund
• Podcast - How to Stop Planning and Start Doing
• Article - Want Foundations to Fund Your Work? Speak Their Language. Here's How.

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