“How do you plan to sustain this program after the term of this grant ends?” How many times have you seen this question on a grant application? I am sure I’m not the only one who raises an eyebrow whenever I have to come up with an answer. The idea that a nonprofit that relies on a grant to fund a program already has a plan to continue funding that program once the grant ends can feel a lot like wishful thinking.
For me, this question (though not on every grant application) remains commonplace and highlights three core realities nonprofit leaders face today:
- In today’s economy, nonprofits cannot rely solely on traditional funding sources: Sustainable core funding from grants, donations, and contracts is becoming increasingly difficult to come by. As inflation rises and demand for charitable services grows, these traditional revenue streams are not keeping pace with today’s realities.
- Shifting donor trends are leading to increased competition for grants: An overall decline in giving1 means that more organizations are competing for already limited grants, making funding even harder to secure.
- Building internal financial resilience is essential: From global events like the COVID-19 pandemic to the multiple economic, social, and environmental crises facing our communities, creating financially resilient organizations ensures nonprofits are well-prepared to deal with fluctuating funding amidst challenging times.
While traditional funding like grants and donations will always be vital to the nonprofit sector, relying solely on these sources is becoming increasingly difficult in today’s financial landscape. With every new State of the Sector report2, we see how nonprofit leaders are under considerable strain to find the resources they need to do their work effectively. To achieve financial sustainability and realize their long-term impact goals, nonprofits must embrace new thinking and move beyond the limitations of traditional fundraising.
Profit in a nonprofit
It must be acknowledged that the economic systems that have shaped our way of life, colonialism, capitalism, and corporate greed, have caused many of the problems that nonprofits are working tirelessly to address. Historically, the pursuit of financial gain has created a lot of damage and injustice in the world.
So often, the nonprofit sector is seen as separate from business or the economy when, in truth, we contribute more to Canada’s GDP than oil and gas3, employ over 2 million people4, and provide core social, environmental, and cultural services to every community across the country. We too are part of the economy, but we operate for people or the planet, not for profit.
Unlike businesses, profit is not about shareholder payouts for nonprofits; it’s about reinvesting in their mission. When nonprofits earn a profit, they can pay their staff a living wage, provide benefits, expand programs, build capacity, and ultimately empower the systems change we are collectively working towards.
This is why “profit” doesn’t have to be a dirty word for nonprofits. The key is finding a way to generate enough resources to reinvest in our organizations while staying true to our missions and maintaining accessibility for the people and communities we serve. If we can do this, just imagine what profitable nonprofits could achieve.
Become a Thriving Non-Profit
The sector has changed, and we have to change with it. We need to think beyond traditional fundraising, empowering organizations to become nonprofit entrepreneurs who apply a business mindset to achieve their missions. Innovation, strategic risk-taking, and revenue diversification are key to building a strong, resilient nonprofit sector—one capable of driving systemic change and creating lasting impact for the communities we serve.
Imagine being able to introduce new programs you know could benefit the community right away. Imagine not having to make tough decisions when traditional funding dries up, or funder priorities change. Imagine being able to hire new people or support your existing employees with living wages, benefits, and professional development. Imagine!
But how do we empower ourselves as a sector and understand how to shift from our traditional culture of scarcity and risk-aversion to one of seeing ourselves as financially powerful agents of change who can use the economic tools of today to create the impact we want to achieve? This is the world we envision at Scale Collaborative, and it is why we developed Thriving Non-Profits, a transformative learning program for nonprofit leaders that challenges limiting beliefs about what’s possible for nonprofit fundraising.
Thriving Non-Profits was developed by three former nonprofit leaders who successfully grew unrestricted resources in their organizations using entrepreneurial thinking and revenue diversification. By going against the ingrained culture of scarcity in the nonprofit sector, they were able to adopt a more business-oriented approach to their organizations’ finances and risk tolerance, applying innovative strategies and a growth mindset to bring in different types of revenue and create financial sustainability.
“Thriving Non-Profits has been a game-changer for us, opening our eyes to the many options available. We are truly grateful for the knowledge and support we’ve received through this program.”– Ken Donnelly, Board of Directors, Canadian Council on Invasive Species.
Join the movement
Thriving Non-Profits offers an incredible learning hub with programs and courses developed by nonprofit leaders for nonprofit leaders. To date, we have helped hundreds of organizations understand their options and develop strategies for increased revenue, and we are excited to gear up for our next cohort in spring 2025!
Our cohort program is a unique 5-month experience that combines online learning, live virtual sessions, and support from expert coaches, providing organizations with a whole new mindset and a revenue diversification action plan they can start using right away.
Nonprofit leaders, managers, and Board members across North America can access the learning right away with our self-paced program or apply to join an upcoming cohort.
“Thriving Non-Profits was the best investment we have made. It helped us to see clearly where we were at. We feel much stronger and better equipped because of this training.” – Delanie Dyck, Executive Director, Yoga Outreach
Are you a funder or partner interested in bringing Thriving Non-Profits to your region? We want to hear from you. Reach out to us at thrivingnonprofits@scalecollaborative.ca.
1 CanadaHelps Giving Report 2024
2 Ontario Nonprofit Network 2024 State of the Sector – Policy Report
3 Energy and the Canadian Economy
4 Imagine Canada Sector Source