Bet on Black: How Nonprofits Often Put Themselves in the Red
Nonprofit CEOs: Has this ever happened to you?
My client was telling me about an unexpected (and unrestricted) legacy gift they received a few years back to the tune of $2 million.
But, every year since, they’ve finished in the red and haven’t been able to accomplish the amazing initiatives outlined in their strategic plan. In fact, this client told me the organization “planned” to finish in the red for the next few years.
Gulp.
Why (and how) did the nonprofit get into this pickle? Well, the board decided that gift should be restricted to program growth.
I have no doubt the heart and root of that decision came from the right place. After all, if you want to see more lives changed, more impact, and more mission… you invest in programs, right?
Not so fast.
What Really Makes Programs Grow?
Spending and investing the right amount of money on administration, operations, finance, planning, and fundraising.
That’s what grows programs.
This is why my client is still in the red year after year. They didn’t account for what it takes to really grow: investing in overhead. Now, their fundraising team is a skeleton crew and doesn’t have the investment in infrastructure they need to empower them to finish in the black every year.
The good news is they can course correct. What does that look like?
Understanding what it really takes to fully finance their mission; ALL of it. They must reallocate dollars. And then align every hour they spend fundraising with the high-ROI results that will get them there.
Let’s break that down even more...
Getting to the Root of Revenue Generation
With my in-the-red client, I immediately knew the task ahead of me (because I’ve done it before).
The biggest thing I can do for the organizations I serve is help them reimagine their overall approach to revenue generation. No fundraising plan, no grant submission, no new savvy board member, no strategic plan, no viral campaign will fix this.
Those are symptoms of a greater issue.
The journey we’ll go on together to fix the root of the issue?
Reimagine their entire approach to revenue generation
Reveal where to break free from the limitations of traditional fundraising
Create a financing plan to fully fund the year (before the fundraising plan)
Transform the board, staff, and team into high-ROI revenue generators
Align every hour the team spends fundraising with new principles that 2X-10X donation sizes.
Follow the journey, and they’ll never have to plan to be in the red again.
Ready to Reimagine Your Organization’s Future?
In spite of the tough 18+ months in our rearview mirror, I’m honored to say I’ve never worked with a greater number of amazing nonprofit organizations than I am right now. The medical, racial, vulnerable population crises they’re solving are beyond inspirational.
So, when I encounter a scenario like this--where an organization’s approach to fundraising is actually stunting growth--I feel even more impassioned, more emboldened, to solve its pervasiveness. If you’re open to reimagining revenue generation (and ultimately grow by millions of dollars), I’m ready to help.
Whenever you’re ready, here are THREE things you can do next:
👣 Follow me on LinkedIn here where I share the same lessons I teach my clients about attracting larger gen-ops dollars and adding 7-figures + to their bottom line.
🍎 Read my GUIDE! THE TRUTH ABOUT GIVE/GETS :: Top 5 Reasons Your Board’s Give/Get Is Leaving Thousands (Sometimes Millions) on the Table. See how limiting board members to the Give/Get model restricts gifts and keeps your staff from reaching their full fundraising potential. Here to get it.
📈 Work with me to scale your org's revenue by 2-5X and fund your organization’s Strategic Plan // If you’re a business-minded CEO already raising MILLIONS but need to diversify revenue and secure more general-operating dollars to invest in growth, you can apply to work with me here.
