First, showing that an organization decreases its volatility and increases its financial stability. Increased stability ensures an organizations longevity through unsure financial times. 

Second, organizations with diversified revenues are often more connected to the community they serve, more efficiently meeting local needs and allowing for better mission performance. Finally, organizations with diverse revenue sources have more autonomy, allowing them to pursue programs or events that better align with their mission. 

How can nonprofits diversify funding for greater community impact? To work towards diversification in revenue, it is recommended that organizations should break down their current funding structure, strategize possible revenue diversification, and implement their finalized plan.     

Breaking down current funding sources

Because implementing a diverse revenue portfolio can be difficult, employee understanding…

This work has been a personal journey as much as a professional one. I’ve been exploring a question that feels relevant not only for nonprofit leaders, but also applicable for all other sectors, and to the collective communities we aim to serve:

Often times there is a lot of emphasis and resources that are focused on measuring impact in the nonprofits. While understanding the impact the cause promotes and elevates is important, it is only half of the equation. The second part of the equation that is often missing, or limited resources are allocated towards, is organizational infrastructure sustainability. And here’s the hard truth: When we struggle to recruit, or neglect to retain people, our communities feel it. It causes a ripple effect that spans far and wide. Having a workforce deficit can cause programs to stall, services disrupted, and public reputation and trust can be impacted.

What’s behind the turnover?

Sure, compensation matters. But it’s not the whole story.

The research goes deeper than just compensation. It is the invisible measures that are less easy to quantify, related to workplace culture, organizational investment in the individuals doing the work, and clarity to the mission-driven work. Remember, people stay where they feel seen, heard and valued. It boils down to one word: belonging.

Five…

Practice mission-focused leadership

Nonprofit leaders should use the organization’s mission as their guide when making decisions as they are responsible for implementing practices that further the organization’s impact on the community. If a decision is made that does not align with the mission, mission drift can creep in which negatively impacts the organization’s ability to fulfill their mission. In my experience, compromising decisions that do not align with the mission are often made when leaders choose to accommodate a funder’s request that they would not have otherwise considered just to receive their funding. A nonprofit leader has a duty to decline or redirect funder requests that do not align with their values in order for the organization to be the most successful. In these situations it is better for the overall wellness of the organization to kindly decline, then offer to connect them to another organization where their gift would be more impactful.

Foster a positive organizational culture

Employees in the workplace want to feel…

The nonprofit sector needs to be strengthened, and Gen Z has the potential to do so by enhancing organizational culture, bolstering the workforce, and continuing a strong vision for the future. Nonprofits can intentionally adopt practices that work alongside the incoming generation to create a better sector and galvanize Gen Z. Zoomers bring their technology skills, quick processing, and energy. The nonprofit sector can provide training, education, structure, and mentorship to help Gen Z create lasting careers. To better equip nonprofits and come alongside the newest working generation, there are a variety of ways to improve each organization.

Intergenerational communication

Sharing a work life with people from different generations is a norm, but sharpening each other is key. Avoid stereotypical assumptions on all sides - communication is the…

A 2022 report from the National Council of Nonprofits calls trust one of the most valuable assets a nonprofit can cultivate. Without donor trust, even the most well-intentioned organizations can struggle. Building trust takes time, but losing it can happen in a headline, a misstep, or an unanswered question. So, what exactly is donor trust? It’s the confidence donors have that your nonprofit will use their funding wisely, ethically, and in alignment with the mission they care about. It’s about believing in an organization’s ability to make a real impact. In a time of high-profile scandals, inconsistent communication, and growing public skepticism about how organizations use their funds, trust has never been more valuable, or more fragile.

Treat transparency as a strategy, not a checkbox

Nonprofits are legally required to disclose financial information, but legal compliance doesn’t always translate into clarity. Donors frequently report that they struggle to access or understand how funds are being used. This lack of clarity fuels public skepticism- according to a 2006 poll, only one in ten Americans strongly believed that charities are honest and ethical in their use of donated funds. To shift this dynamic, nonprofits can communicate financials in ways that are proactive, accessible, and understandable. 

Build internal systems that reinforce accountability

Accountability can start from within. Scandals in organizations like Oxfam and the…