The Nonprofit Show Revenue Diversification for Nonprofits: The Egg or the Basket?
Cohosts Julia C. Patrick and Tony Beall tackle a fundraising trap that quietly keeps nonprofits stressed and stuck: betting everything on one revenue source. They call it “The Egg or the Basket”—and the message is clear: your mission can’t ride on a single lane of funding.
Tony frames revenue diversification in plain business terms: build multiple revenue streams that fit your mission, your market, and your organization’s maturity. If one stream slows down or disappears, you’re not forced into panic-mode program cuts. Julia reinforces that there’s no one-size-fits-all formula; the mix should shift based on life cycle, community behavior, and capacity.
They walk through a sample revenue mix and why it often surprises teams. Individual giving typically sits as the largest slice, and Tony points listeners to Giving USA as a useful reference point for understanding how national trends compare to your own results. Grants, while important, can be unpredictable—especially for newer organizations. Tony offers a reality check for early-stage nonprofits: many funders want proof of concept, years of services delivered, and sometimes matching funds before larger awards are on the table.
Then they move into earned revenue and enterprise conversations—where boards may push for a café, thrift store, gallery, or other venture. Julia notes these choices come with real accounting and cost structures that must be managed like a business line, not a side hobby.
Finally, they bring it home with practical governance tools: reporting, dashboards, benchmarking, and scenario planning so teams can pivot intentionally. As Tony puts it, “You need good data to help you understand how to diversify your revenue stream and what that mix should look like.” And Julia warns against board-driven wish lists that development teams are told to execute after the fact: “That’s just…a recipe for disaster.”
#NonprofitFundraising #RevenueStrategy #TheNonprofitShow
Find us Live daily on YouTube!
Find us Live daily on LinkedIn!
Find us Live daily on X: @Nonprofit_Show
Our national co-hosts and amazing guests discuss management, money and missions of nonprofits!
12:30pm ET 11:30am CT 10:30am MT 9:30am PT
Send us your ideas for Show Guests or Topics: HelpDesk@AmericanNonprofitAcademy.com
Visit us on the web:The Nonprofit Show