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What If Our Funding Dries Up?

Updated: May 14




How to create diversified, resilient revenue streams without chasing every opportunity

Sheree Cannon | Nonprofit Strategist & Consultant | Author

© Sheree Cannon, author. All rights reserved.

Introduction

Every nonprofit leader has faced it—that quiet fear just beneath the surface:What if the money stops coming in?

Maybe it’s after a funder pulls out. A grant doesn't renew. An annual gala underperforms. Or maybe the concern is just always there in the background, no matter how well things seem to be going on paper.

Sustainability isn’t just about managing a budget. It’s about building something that can weather changes in the economy, leadership, donor priorities, and the unexpected.

This paper explores how to build a funding structure that doesn’t rely on hope, urgency, or the same few sources repeating themselves year after year. It's about moving from survival to strategy.

The Real Fear Behind Funding Instability

The fear of losing funding isn’t about money alone. It’s about what that loss might signal:

  • Will we have to cut programs?

  • Let staff go?

  • Appear unstable to donors?

  • Will I, as the leader, be blamed?

These are valid concerns. But they point to something deeper: the need for diversified, values-aligned revenue streams that support both stability and growth.

“Your organization shouldn’t have to live in a constant state of financial reaction. There’s a better way.”
What Makes Funding Fragile

Some common patterns that lead to financial instability:

  • Overreliance on one or two major funders

  • Lack of unrestricted revenue

  • Event-heavy fundraising strategies that burn out staff

  • No plan to replace leadership-level donor relationships

  • Hesitancy to explore planned giving or long-term gifts

  • Avoiding infrastructure or investment costs that actually create sustainability

Most leaders don’t choose fragility—it happens quietly, over time, when strategy gets replaced by urgency.

Five Ways to Build Resilient Revenue

1. Map What You Rely On Now

Start with a clear-eyed review of your current revenue:

  • What percentage is individual giving?

  • How much comes from grants or events?

  • What’s restricted vs. unrestricted?

  • What would happen if one major source disappeared tomorrow?

This helps you see both gaps and opportunities.

2. Diversify With Intention—Not Panic

Adding revenue streams doesn’t mean chasing every opportunity. It means choosing 1–2 aligned strategies to grow gradually over time.

This might include:

  • Monthly giving

  • Workplace giving

  • Peer-to-peer fundraisers

  • Planned giving

  • Mission-related earned income

  • Corporate or foundation partnerships

Choose based on your capacity, not just potential return.

3. Strengthen the Middle of Your Donor Base

Many organizations focus only on major gifts or one-time donors. But long-term stability often comes from the middle—those who give $250–$2,500 consistently and upgrade over time.

Focus on relationship-building, clear impact communication, and easy ways for donors to deepen their commitment.

4. Fund Your Infrastructure Without Guilt

Sustainable revenue requires staff, systems, and stewardship. Don’t underfund the very engine that makes fundraising possible. Educate donors, grantmakers, and your board about the importance of unrestricted operating support.

5. Integrate Long-Term Gifts Into Your Messaging

You don’t need a full planned giving campaign to get started. Begin by:

  • Adding endowment or legacy language to your website

  • Including a “leave a gift in your will” checkbox in appeals

  • Having intentional conversations with loyal donors

  • Educating your board on the power of long-term funding

You are planting seeds—not just asking for quick wins.

Funding With Clarity Is Leadership, Not Luck

Stability comes from structure—not guessing or grinding. The more clear you are about your funding model, the more confident you’ll feel about the future.

And when funders see a leadership team thinking long-term, aligned with mission, and transparent about needs—they step in, not back.

Conclusion: You Can Build a Model That Holds

It’s natural to fear the unknown, especially when it comes to money. But the way through is not to scramble or shrink. It’s to lead with clarity and strategy.

You don’t have to overhaul everything overnight. Just start with the truth, choose your next step with intention, and build from there.

Your mission deserves funding that lasts.

Want Support? Let’s Talk.

I help nonprofit leaders build long-term, aligned revenue strategies that reflect your values and strengthen your mission. If you’re ready to move from fragile to resilient, I’m here to help.

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