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Designing Tomorrow: Creative Strategies for Social Impact

The Secret Behind High Growth Nonprofits

25 Feb 2025

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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 nonprofitResources:Article - SSIR - How Nonprofits Get Really BigArticle - SSIR - Ten Nonprofit Funding ModelsArticle - Why Social Impact Brands Struggle to Attract, Grow, and Retain RevenueArticle - How to Create the Conditions for Sustainable RevenueArticle - From Starvation to Sustainability: Rethinking Revenue in Social ImpactAmerican Kidney FundPodcast - How to Stop Planning and Start DoingArticle - Want Foundations to Fund Your Work? Speak Their Language. Here's How.Listeners, now you can text us your comments or questions by clicking this link.*** If you liked this episode, please help spread the word. Share with your friends or co-workers, post it to social media, “follow” or “subscribe” in your podcast app, or write a review on Apple Podcasts. We could not do this without you! We love hearing feedback from our community, so please email us with your questions or comments — including topics you’d like us to cover in future episodes — at [email protected] Thank you for all that you do for your cause and for being part of the movement to move humanity and the planet forward.

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