Latest / The Nonprofit Podcast / Ep 166| 4 Power Moves to Safeguard Your Nonprofit’s Funding

Transcript

Ep 166| 4 Power Moves to Safeguard Your Nonprofit’s Funding · The Nonprofit Podcast

• 0:00
  SPEAKER_02: Why do we exist?
• 0:01
  SPEAKER_02: We're pushing for real change, right?
• 0:03
  SPEAKER_02: But advocacy doesn't have to mean taking a hard stance or picking a fight or even getting political.
• 0:09
  SPEAKER_02: We need to stay focused on the issues that matter most to the people we serve.
• 0:14
  SPEAKER_02: And what that looks like is when we center the voices in the real stories of the people in our communities and then we back it up with solid data.
• 0:23
  SPEAKER_02: It's no longer about the politics, right?
• 0:26
  SPEAKER_02: The message hits harder.
• 0:28
  SPEAKER_02: It's urgent, it's real, and it makes it easier for people across all spectrums to want to step in and get involved.
• 0:35
  SPEAKER_02: That way you're going to completely remove a lot of the noise in the sector.
• 0:39
  SPEAKER_01: The Nonprofit Podcast, powered by Donor Bucks.
• 0:43
  SPEAKER_01: Welcome to the Nonprofit Podcast where insight meets impact.
• 0:47
  SPEAKER_01: I'm Jenna Lynch, Education and Community Engagement Manager here at Tower Box.
• 0:52
  SPEAKER_01: Each week we share practical information, clear insights, and inspiration to help you raise more, reach further, and drive real results.
• 1:03
  SPEAKER_01: Today we're tackling a tough but essential topic: navigating funding cuts and scrutiny.
• 1:10
  SPEAKER_01: With the economic shifts and increasing challenges nonprofits are facing right now, it's more important than ever to be strategic and how we manage funding and visibility.
• 1:22
  SPEAKER_01: So, how can we keep our organization strong even as resources shrink?
• 1:28
  SPEAKER_01: I am joined by my fellow host, Britton Stalker, fundraising strategist here at Donorbox to discuss exactly what nonprofits can do to weather the storm while staying aligned with their core mission and their values.
• 1:41
  SPEAKER_01: Welcome, Britt.
• 1:42
  SPEAKER_01: Hey, Jenna.
• 1:43
  SPEAKER_02: As always, glad to be joining you.
• 1:45
  SPEAKER_02: I think we can both agree times are tough right now for a lot of nonprofits.
• 1:51
  SPEAKER_02: But as we say, with the right tools, with the right mindset, so many of you organizations out there, you can get through this and you're going to be even stronger.
• 2:00
  SPEAKER_02: So today, Jenna and I are talking about some really simple, actionable steps that any of y'all can take to adapt and be more resilient.
• 2:09
  SPEAKER_01: Yep, for sure.
• 2:10
  SPEAKER_01: Now let's jump right into our first strategy, which is owning your narrative.
• 2:14
  SPEAKER_01: And I know this can sound simple, but Brit, what does it mean really to own your nonprofit story, especially when times are tough?
• 2:23
  SPEAKER_01: And how can organizations do this effectively?
• 2:26
  SPEAKER_02: Quick question, Jenna.
• 2:27
  SPEAKER_02: Like you said, owning your narrative, what it simply means is taking control of the story that you're telling about your nonprofit.
• 2:35
  SPEAKER_02: It's defining your problem, how you're solving it in a way that makes your organization stand apart from any other organization out there.
• 2:44
  SPEAKER_02: Think about it this way, right?
• 2:45
  SPEAKER_02: If I'm a donor and I have$100 to give, why the heck should I give it to you versus any other organization out there?
• 2:54
  SPEAKER_02: That's really the question, which is the why that you need to answer clearly.
• 2:58
  SPEAKER_01: Yeah, exactly.
• 2:59
  SPEAKER_01: So it's not just about saying we do good work, right?
• 3:03
  SPEAKER_01: So many nonprofits do good work.
• 3:05
  SPEAKER_01: It's about making sure that people know exactly what problem you're solving, why your approach matters, what makes it unique, and why they should actually care.
• 3:16
  SPEAKER_01: So where does a nonprofit even start with this?
• 3:19
  SPEAKER_02: I would say there's three things here, right?
• 3:21
  SPEAKER_02: We talked about getting really clear on the problem that you're trying to solve.
• 3:25
  SPEAKER_02: When we're talking about this, you're doing so not just in any generic way, like we fight hunger.
• 3:32
  SPEAKER_02: We don't want it to be too broad.
• 3:34
  SPEAKER_02: We need to bring it close to home.
• 3:36
  SPEAKER_02: We need to show people the real weight.
• 3:38
  SPEAKER_02: And what I mean by that is the scale and the urgency of it.
• 3:42
  SPEAKER_02: So let's just say you're a hunger-led or serving type of nonprofit.
• 3:47
  SPEAKER_02: If you're tackling food insecurity, what that really looks like is right now, over 13 million families in the US are struggling to put food on the table.
• 3:58
  SPEAKER_02: Grocery prices are through the roof.
• 4:00
  SPEAKER_02: School meal programs, they're being cut back, and even more families right here in the Lake Washington community are qualifying for it.
• 4:08
  SPEAKER_02: Bring it close to home, right?
• 4:10
  SPEAKER_02: What we did right now is we showed the pervasiveness of the problem.
• 4:13
  SPEAKER_02: Well, now you humanize it.
• 4:16
  SPEAKER_02: You get really clear, get as specific as possible.
• 4:19
  SPEAKER_02: So in our Lake Union community, one in five South Shore kids, they don't have enough food to eat.
• 4:26
  SPEAKER_02: Our weekend meal program is right there, making sure that no child goes hungry.
• 4:31
  SPEAKER_02: So, what we did, right?
• 4:33
  SPEAKER_02: We took a broad pro uh problem, we showed the scale of it, the urgency, we humanized it, we made it really specific.
• 4:40
  SPEAKER_02: Well, then wrap it up.
• 4:41
  SPEAKER_02: The part that really lands is you're gonna connect to why it matters.
• 4:46
  SPEAKER_02: Why does it matter?
• 4:47
  SPEAKER_02: Let me give you an example.
• 4:48
  SPEAKER_02: These are kids in your neighborhood, they're gonna go to bed hungry.
• 4:52
  SPEAKER_02: And this program that we have, we're stepping in where their system isn't in the Lake Washington community.
• 4:58
  SPEAKER_02: You're not just handing out food, you're giving kids a real shot so that they show up on Monday morning, they're fed, they're focused, and they're ready to take on the day.
• 5:06
  SPEAKER_02: Again, we showed the pervasiveness of the problem.
• 5:08
  SPEAKER_02: We brought it to home and we humanized it.
• 5:11
  SPEAKER_02: And then again, we re-emphasize that why.
• 5:13
  SPEAKER_02: Those are the three things, Jenna, that I would say to really set yourself apart from any other nonprofit out there.
• 5:19
  SPEAKER_01: Those are great examples.
• 5:21
  SPEAKER_01: And that's the moment where people go, oh, right?
• 5:24
  SPEAKER_01: Like this is why it matters.
• 5:26
  SPEAKER_01: And like you said, clarity is key.
• 5:29
  SPEAKER_01: And then once you've got that clear, keep communicating it, right?
• 5:34
  SPEAKER_01: Whether that's on your website, your social media, or even in your donor communications, especially in your donor communications, that same core message should be front and center, right?
• 5:45
  SPEAKER_01: The what, the why.
• 5:47
  SPEAKER_01: If you want your story to stick, it has to be clear and it has to be consistent everywhere.
• 5:53
  SPEAKER_01: Okay.
• 5:54
  SPEAKER_01: I want to talk about diversifying your revenue.
• 5:57
  SPEAKER_01: I think this is one that is on a lot of people's minds right now.
• 6:01
  SPEAKER_01: I think this one's huge, especially with funding cuts happening all over the place.
• 6:07
  SPEAKER_01: So, uh, Brittany, I know you have a lot of thoughts on this.
• 6:10
  SPEAKER_01: Why should nonprofits really focus on diversifying their income right now?
• 6:15
  SPEAKER_02: Yeah, I think we've talked a lot about this on several of our episodes.
• 6:20
  SPEAKER_02: It's really simple.
• 6:21
  SPEAKER_02: Um, when we rely on just one source of income that might be a government grant and might be relying on one corporate sponsorship for the year, what happens?
• 6:31
  SPEAKER_02: It puts us in a really risky spot.
• 6:34
  SPEAKER_02: And if that one source goes away or completely gets reduced, you're gonna be left scrambling.
• 6:40
  SPEAKER_02: The more revenue streams that you have, the stronger and the more stable you are.
• 6:44
  SPEAKER_02: Plain and simple, Jenna.
• 6:45
  SPEAKER_01: Yeah, yeah, exactly.
• 6:47
  SPEAKER_01: So what is the first thing a nonprofit can do to start diversifying?
• 6:52
  SPEAKER_02: Yeah, one of the best places to start is it's with the monthly giving program.
• 6:57
  SPEAKER_02: And we talk a lot about this on the podcast.
• 6:59
  SPEAKER_02: Think about it.
• 7:00
  SPEAKER_02: If 100 people are going to give$5 a month, that's$500 coming in like clockwork.
• 7:07
  SPEAKER_02: You're not chasing them, there's no stress.
• 7:10
  SPEAKER_02: It's gonna be reliable support that you can count on.
• 7:12
  SPEAKER_02: And it just gives you a little bit of breathing room, which I imagine so many nonprofits out there really need.
• 7:18
  SPEAKER_02: Thinking about a lot of my coaching sessions, when you're setting up a monthly giving program, where you want to start is you need to give your monthly giving program a name, a name that makes people feel that they're part of something meaningful, part of something exclusive.
• 7:33
  SPEAKER_02: Beyond the name, one other thing that I think is really helpful for fundraisers is you still need to do the one-on-one relational fundraising work that needs to happen, relationship building, right?
• 7:46
  SPEAKER_02: But what do we know?
• 7:47
  SPEAKER_02: You cannot possibly meet with every single donor out there.
• 7:51
  SPEAKER_02: You are swamped.
• 7:52
  SPEAKER_02: And so this is where an automated welcome email series comes into play.
• 7:58
  SPEAKER_02: It's gonna keep your monthly donors informed.
• 8:01
  SPEAKER_02: It's gonna show them so much donor love.
• 8:04
  SPEAKER_02: And for most of that email series, you're gonna be able to invite your monthly donors in ways that are non-monetary, in ways where they can truly witness the impact of what you're doing.
• 8:15
  SPEAKER_02: Again, this isn't a replacement for the real connection, the one-on-one relationship building that needs to happen, but it's gonna be a super easy way to support the stewardship that you're doing with your monthly donors.
• 8:27
  SPEAKER_01: Yeah, I think that's a great idea.
• 8:29
  SPEAKER_01: Automate where you can, you gotta have that journey in place.
• 8:32
  SPEAKER_01: And it's a bit of work on the front end to set it up.
• 8:35
  SPEAKER_01: But once you do, what a lovely thing to have just running for you to um not replace, like you said, but uh, I guess amplify or kind of just uplift a little bit more of that connection that you're already working on.
• 8:49
  SPEAKER_01: Okay, so what's next after that?
• 8:52
  SPEAKER_02: Yeah, let's talk about corporate sponsorships.
• 8:54
  SPEAKER_02: We've known about them for a long time, right?
• 8:56
  SPEAKER_02: But what does that look like in 2025?
• 8:59
  SPEAKER_02: And what I tell some of my clients is we can't just keep sending an email to the CSR corporate social responsibility person and hope that we're gonna get a response.
• 9:09
  SPEAKER_02: As you know, things are competitive.
• 9:11
  SPEAKER_02: I'm guessing these folks get a million different emails a day.
• 9:14
  SPEAKER_02: Corporate giving, like donor stewardship, it is a long game.
• 9:18
  SPEAKER_02: It's relationship building.
• 9:20
  SPEAKER_02: So use LinkedIn.
• 9:22
  SPEAKER_02: LinkedIn is another lifesaver to find like the real decision makers within those organizations.
• 9:29
  SPEAKER_02: It might not always be the CSR or the ESG.
• 9:32
  SPEAKER_02: It might be a marketing HR.
• 9:34
  SPEAKER_02: Find who they are.
• 9:36
  SPEAKER_02: And if you can, find where they're at in your local community, and you're gonna want to tap into those local networking events.
• 9:42
  SPEAKER_02: Okay.
• 9:43
  SPEAKER_02: Unfortunately, with corporate sponsorships, emails don't always work.
• 9:47
  SPEAKER_02: You got to get in front of them.
• 9:48
  SPEAKER_02: And on top of that, the conversations that you need to have need to be creative.
• 9:54
  SPEAKER_02: You're gonna need to come up with some real creative, original ideas beyond just sponsoring an event.
• 9:59
  SPEAKER_02: That might be setting up a year-round partnership with some mutual benefits, right?
• 10:03
  SPEAKER_02: Beyond just the one annual gala that you're hosting.
• 10:06
  SPEAKER_02: And another tip that I tell my coaching clients is every state, at least in the United States, they have what are called business journals.
• 10:16
  SPEAKER_02: And in every business journal, they have an exclusive edition that will publish in-depth details about which companies have corporate social responsibility programs, what is their giving history like, and what types of focus areas will they fund.
• 10:31
  SPEAKER_02: Those are gold.
• 10:33
  SPEAKER_02: Okay.
• 10:33
  SPEAKER_02: And they're you have access to them free.
• 10:36
  SPEAKER_02: So get your hands on some of those publications.
• 10:38
  SPEAKER_02: They're gonna give you the level of intel that you need to start those conversations one-on-one.
• 10:44
  SPEAKER_01: Yeah, I think it's not just about asking for money from businesses, right?
• 10:48
  SPEAKER_01: It's about building those relationships, and that should benefit both sides, right?
• 10:53
  SPEAKER_01: Relations relationships are reciprocal.
• 10:55
  SPEAKER_01: That's how they should be.
• 10:56
  SPEAKER_01: Do your homework first and come at it in a really creative place.
• 11:00
  SPEAKER_01: And um, I'll add one more to this, and this may be a bit unconventional in thinking about diversifying income.
• 11:07
  SPEAKER_01: I would say don't forget about like this earned income, right?
• 11:09
  SPEAKER_01: Selling products, for example, or offering services that align with your mission.
• 11:14
  SPEAKER_01: And not everybody will have the capacity for this, but I have seen this work really well as well.
• 11:18
  SPEAKER_01: So, for example, uh, if you do health education, you could offer workshops or online courses for a fee.
• 11:24
  SPEAKER_01: This is content that you already have and an audience that you already have, and that can help supplement and give you some sustainable income as well.
• 11:32
  SPEAKER_01: Spot on, Jenna.
• 11:34
  SPEAKER_01: All right, I want to shift gears now to advocacy.
• 11:38
  SPEAKER_01: I know nonprofits sometimes shy away from advocacy, especially when it feels like there's so much political risk around the sector right now.
• 11:47
  SPEAKER_01: So, how can nonprofits still advocate for their work without um, I guess, drawing unwanted attention?
• 11:56
  SPEAKER_02: It's a really great question, Jenna.
• 11:58
  SPEAKER_02: I have my own opinions on this.
• 12:00
  SPEAKER_02: Um, but thinking about the nonprofits listening in, you know, nonprofits, some of us might argue are political in nature because what are we out here for?
• 12:08
  SPEAKER_02: Why do we exist?
• 12:09
  SPEAKER_02: We're pushing for real change, right?
• 12:11
  SPEAKER_02: We're we're challenging systems that are holding people and different communities back, right?
• 12:17
  SPEAKER_02: And for a lot of us, that's kind of the reason why nonprofits exist.
• 12:21
  SPEAKER_02: We're trying to lift up neighbors and make things better.
• 12:24
  SPEAKER_02: But when it comes down to approaching companies who might be a little hesitant, what I what I'll have to say here, Jenna, is advocacy doesn't have to mean taking a hard stance or picking a fight or even getting political.
• 12:39
  SPEAKER_02: We need to stay focused on the issues that matter most to the people we serve.
• 12:44
  SPEAKER_02: And what that looks like is when we center the voices in the real stories of the people in our communities and then we back it up with solid data, it's no longer about the politics, right?
• 12:55
  SPEAKER_02: The message completely hits harder.
• 12:58
  SPEAKER_02: It's urgent, it's real, and it makes it easier for people across all spectrums to want to step in and get involved.
• 13:06
  SPEAKER_02: So again, center those voices, bring in the real stories, and then back it up with the data.
• 13:11
  SPEAKER_02: And that way you're gonna completely remove a lot of the noise that politics tends to bring in this sector.
• 13:17
  SPEAKER_01: Right.
• 13:17
  SPEAKER_01: Yeah, it's all about educating and raising that awareness.
• 13:20
  SPEAKER_01: And I think that's a great start.
• 13:22
  SPEAKER_01: So after that, what would you say is the next step in advocating for the sector?
• 13:26
  SPEAKER_02: Bring in the power of community and partnerships.
• 13:29
  SPEAKER_02: There's so much power when we raise our voices together, when we team up.
• 13:34
  SPEAKER_02: Um, I'm thinking about, you know, sometimes when your nonprofit is trying to approach, for example, a city council member or even a human services commission, that's a lot of load to carry alone.
• 13:47
  SPEAKER_02: And so partner up, find other nonprofits near you who are working on the same issues, host joint roundtables, show up at public hearings together, join a collective.
• 13:59
  SPEAKER_02: Um, whatever you can do to create these coordinated partnerships, what that's gonna do is it's no longer gonna silo you where you're the bad guy.
• 14:09
  SPEAKER_02: It's gonna bring power as a joint force that nobody can ignore.
• 14:13
  SPEAKER_01: And I would say don't forget to empower your supporters too, right?
• 14:18
  SPEAKER_01: The people who are already in your community, ask them to share your advocacy posts, sign petitions, attend events with you, share their voices.
• 14:26
  SPEAKER_01: And the more voices that you have, the more impact you can create as well, right?
• 14:31
  SPEAKER_01: Uh it's all about that togetherness.
• 14:32
  SPEAKER_01: And I think that just really strengthens the sector as a whole.
• 14:36
  SPEAKER_01: Okay, we're we're shifting again.
• 14:38
  SPEAKER_01: I want to talk about compliance.
• 14:41
  SPEAKER_01: Now, I know this may not be the most exciting topic, but it's important to stay above board and build trust with donors, especially when there's so much happening in the funding of the sector right now, and your funding um can be under scrutiny.
• 14:56
  SPEAKER_01: So why is this compliance piece so important here?
• 15:00
  SPEAKER_02: Yeah, that's a really great question, Jenna.
• 15:02
  SPEAKER_02: As usual, donors and funders, they're still watching nonprofits, I would say, more closely than ever.
• 15:09
  SPEAKER_02: But as we know in 2025, we're starting to see some tighter rules coming into play.
• 15:15
  SPEAKER_02: We don't know yet how they're gonna pan out, but we know that there are going to be tighter restrictions that impact your fundraising, how you manage your donor data, the disclosures.
• 15:27
  SPEAKER_02: And so staying compliant will be your safety net to sustainability, to making sure that you're showing up for your community.
• 15:35
  SPEAKER_02: So, first, you want to be super clear about how your donations are used.
• 15:39
  SPEAKER_02: When you're upfront and honest, donors are gonna stick around and trust you more.
• 15:43
  SPEAKER_02: Check your fundraising copy in all of your appeals, all of your receipts, and make sure that they say not just what the gift specifically supports, but that the messaging aligns with IRS compliance regulations.
• 15:56
  SPEAKER_02: The second part of that is make sure that you're registered in every state where you're fundraising, even if it's just online.
• 16:04
  SPEAKER_02: This one is so easy to miss.
• 16:06
  SPEAKER_02: So something as simple as having a dedicated board secretary or a reliable volunteer is gonna make sure that you're meeting all of those requirements on a monthly basis.
• 16:16
  SPEAKER_02: And third, you know, there's so much going on with data breaches and privacy scares.
• 16:22
  SPEAKER_02: You just want to make sure that your privacy policy is up to date and you're being very clear with your donors specifically how you're tracking their data.
• 16:31
  SPEAKER_02: They simply need to know how their info is being handled.
• 16:34
  SPEAKER_01: Yeah, absolutely.
• 16:35
  SPEAKER_01: You got to be using a secure database.
• 16:38
  SPEAKER_01: Uh, donorbox has amazing security uh in place, even with their JAI.
• 16:43
  SPEAKER_01: You can use that as your AI database, and that stays all within our platform.
• 16:47
  SPEAKER_01: So that's not going out to the ether to anybody where anybody can access that data, right?
• 16:52
  SPEAKER_01: I think that's a really important point and not one that people always think of.
• 16:56
  SPEAKER_01: Okay, so let's go ahead and wrap up.
• 16:58
  SPEAKER_01: Here's a quick rundown of the strategies you can use to navigate funding cuts and scrutiny right now.
• 17:04
  SPEAKER_01: So you want to own your narrative, right?
• 17:06
  SPEAKER_01: You want to define the problem you solve, how it's unique, and why your nonprofit is the best solution to that problem.
• 17:12
  SPEAKER_01: Diversify your revenue.
• 17:14
  SPEAKER_01: We talked about all sorts of ways to try new income sources, monthly giving, corporate partnerships, mission-related products or services, and advocate for your sector, right?
• 17:25
  SPEAKER_01: Use your voice, bring in your community, and really amplify that message.
• 17:29
  SPEAKER_01: And of course, maintain compliance, right?
• 17:31
  SPEAKER_01: Be transparent in all of your reporting and the way that you use your data so that you can continue to build that trust with your donors.
• 17:38
  SPEAKER_01: And if you need help with building a more sustainable revenue, we've linked our nonprofit sustainability, your action plan article in the show notes.
• 17:46
  SPEAKER_01: It is full of steps to help you create a resilient and diversified revenue model.
• 17:51
  SPEAKER_01: Britt, thanks so much for sharing your insights today.
• 17:53
  SPEAKER_01: Great joining you, Jenna.
• 17:55
  SPEAKER_01: And thank you for being a part of the nonprofit podcast community.
• 17:59
  SPEAKER_01: Your work matters, and we are so honored to support it.
• 18:03
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• 18:07
  SPEAKER_01: Until next time, take that first step and stay inspired.
• 18:12
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• 18:26
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• 18:27
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