I’ve seen several stories lately (one on the front page of my local newspaper) about nonprofits that are facing closure because of the loss of a big grant.

These nonprofits are in this situation because they got a big grant and then stopped fundraising. They got comfortable and maybe even lazy.  They became dependent on this one large revenue source and never thought about what they’d do if it ever went away.  Now it has and they’re in crisis mode.

Don’t let this happen to you!  Don’t become dependent on one large grant or one special event or one whatever. 

If you have one revenue stream that makes up more than about 20% of your revenue budget, you better get started working on some other revenue streams so you can avoid this desperate situation.

You don’t want to end up in the news because you’re closing your doors.

  1. It’s too true, one nonprofit I know has a large government grant in one hand, and an annual dinner in the other hand, and that’s 90% of their funding. And soon one of their staff is going to retire, and since she hasn’t been allowed to train anyone to report on the government grant, they are going to lose it, and they only have success with their annual dinner because their event consultant has done it for the past four years, is extraordinarily kind and does it for a very small fee.


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