The Secret Behind High Growth Nonprofits

Designing Tomorrow: Creative Strategies for Social Impact

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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Chapters

1. The Secret Behind High Growth Nonprofits (00:00:00)

2. Introduction: Secrets Behind Nonprofit Growth (00:00:08)

3. Discussion on Dominant Funding Sources (00:05:19)

4. Should Nonprofits Focus on Growth? (00:12:09)

5. Strategies for Gaining Traction (00:21:56)

6. Importance of Deep Partnerships with Funders (00:31:26)

7. Case Study: The American Kidney Fund (06:05:05)