September 9, 2025
The Impact Issue #78: Avoid The “Single Funder Trap” With More Revenue Streams
Burnout is on the rise and so are funding risks. We can help you stay ahead!
Hey there, and welcome to The Impact!
This week, we’re tackling some of the sector’s toughest patterns: burnout, funding gaps, and time sinks that quietly derail progress.
Inside, you’ll find:
- How to build a funding mix that lasts
- Expert advice on tapping into DAFs and private grants
- Burnout stats every leader should see (and share)
- Two funding opportunities worth your shortlist
Take five minutes to read through. Your future self will thank you!
Pitfalls and Pointers
⚠️ Pitfall: Relying on a Single Funding Source
It often happens without much notice. A nonprofit secures a large grant, builds programs around it, and leans on it year after year.
But when that funding ends, whether due to shifting priorities, economic downturns, or leadership changes, the organization faces a scramble to keep programs running. Staff morale dips, donor relationships are strained, and long-term plans get shelved while the team pivots to short-term survival.
Depending too heavily on a single revenue stream puts your mission at risk. Without a diversified funding base, you’re one unexpected change away from a major budget crisis.
💡 Pointer: Build a Funding Mix You Can Count On
A sustainable funding strategy spreads your risk and builds stability over time. Here’s how to start:
- Audit your revenue streams: Map out where every dollar came from last year (individual donors, grants, corporate donors, events, etc.) and note any overreliance.
- Add one new stream at a time: Choose an area that fits your mission and capacity, like a corporate partnership, planned giving program, or small-donor campaign.
- Invest in relationships: Long-term donors, community partners, and funders are more likely to stick with you when budgets tighten.
- Check progress regularly: Quarterly reviews help you pivot before a gap becomes a crisis.
Sustainable fundraising isn’t about chasing quick wins; it’s about building a balanced portfolio of support that can carry your mission through uncertainty.
Ready to learn more about sustainable fundraising models?
👀 Check out this roadmap to long-term impact!
Expert Perspectives
🏆 Mitch Stein on Tapping Into the Fastest-Growing Revenue Channels
Mitch Stein, Head of Strategy at Chariot, shared with us how two of the fastest-growing and most resilient funding sources for nonprofits—donor-advised funds (DAFs) and private grants—can help organizations build long-term sustainability. With over $250 billion sitting in DAFs and $55 billion in grants in 2023 alone, these channels are becoming too significant to ignore.
So how can nonprofits actually access and benefit from these opportunities? Mitch broke it down into a few practical steps.
Here’s his expert advice:
- Make DAF giving visible: Add DAF options to your website and appeals so donors know it’s available. The American Red Cross has an excellent donor-advised fund (DAF) giving page on its website.
- Track every gift: Even “mystery” DAF gifts should be logged so you can connect the dots later.
- Focus on relationships, not institutions: Skip chasing DAF providers, because it’s the donors who ultimately decide where the money goes. Build trust and engagement directly with your supporters so they’ll choose you when directing their DAFs.
- Keep it simple before scaling: A shared spreadsheet can be enough to start managing DAF gifts effectively.
DAFs and private grants aren’t quick fixes, but they’re stable, growing revenue sources. By making small, strategic changes now, you can strengthen your funding mix without overwhelming your team.
📼 Watch the full workshop replay here!
The Latest Numbers: Nonprofit Burnout Is Boiling Over
According to Instrumentl’s latest Burnout Report, things are heating up across the sector—and not in a good way.
After surveying 250 nonprofit professionals, the results paint a clear picture of a workforce on edge:
- 42% of respondents reported experiencing burnout in the past year
- The District of Columbia ranks highest for burnout pressure, while New Mexico ranks lowest
- Top burnout culprits? Staffing shortages, role creep, and budget cuts
- Just 45% plan to stay in their current role, with pay, clarity, and growth cited as key to staying
However, our report also outlines ways nonprofits can invest in their employees and drive retention even when budgets are tight.
👉 Check out all of the data and insights here!
Opportunities Spotlight
💪 Build Investments (New Profit, Inc.)
Who It’s For: Nonprofits focused on systems-level change across education, economic mobility, and democracy, particularly those led by or co-designed with communities they serve.
Next Deadline: Rolling deadline (no specific cutoff date)
Grant Amount: Up to $1,500,000 in unrestricted, multi-year capital
The Details:
- Provides organizations with flexible, unrestricted funding tailored to long-term impact and growth
- Grants are multi-year and are accompanied by access to peer networks and professional coaching, helping nonprofits expand both mission and organizational resilience
⭐ Hartford Foundation Small Nonprofit Grants
Who It’s For: Nonprofits with annual operating expenses under $300,000 serving the greater Hartford, Connecticut area.
Next Deadline: October 1, 2025
Grant Amount: Up to $15,000
The Details:
- Supports smaller nonprofits in strengthening their infrastructure and sustainability
- Funding may be used for capacity building, technology upgrades, or planning projects
- Designed to help organizations increase long-term community impact
🔍 Explore thousands of other grant opportunities now!
Networking Nook
💻 Webinar: Build a Better Compliance System
Tuesday, September 16 | 12:00 PM CDT
Managing federal grants comes with high stakes and even higher scrutiny. In this free workshop, federal grants expert Rachel Werner (Owner and CEO of RBW Strategy and Principal at MyFedTrainer) will share 10 essential tips to help you stay compliant with federal regulations, reduce audit risk, and build confidence in your grant management systems.
Save your spot!
💻 Webinar: Finding Your Voice: Content that Stands Out in the Crowd
Tuesday, October 21 | 3:00 PM EDT
Discover how to cultivate and amplify your nonprofit’s unique voice. This webinar, hosted by CharityHowTo, arms you with storytelling strategies to craft compelling, resonant content that attracts attention and inspires action.
It’s free - but seats are limited!
To check out more recent and upcoming live events, go here.
In Case You Missed It
📑 Article: Top 6 Grant Management Best Practices for Nonprofits
A timely, actionable guide from Instrumentl that walks grant professionals through the funding lifecycle, from creating a proposal “answer library” and task tracking to leveraging Instrumentl Apply for faster, smarter grant workflow. This guide is filled with tips that help your team stay organized, compliant, and impact-focused.
📼 Video: Fundraising Self-Identification and Engaging Your Networks
This masterclass video, hosted by Catalyst Now and Black Fox Global, empowers nonprofits to sharpen fundraising strategies by helping leaders identify their unique value and mobilize authentic networks, covering messaging clarity, network activation, and relationship-building in a compelling format.
🎙️ Podcast: Cultivating a Growth Mindset in Nonprofit Leadership
On this episode of the Nonprofit Hub Radio Podcast, host Meghan Speer interviews Cathleen Armstead about the power of a growth mindset in nonprofit leadership. This inspiring episode takes a deep dive into leadership resilience—perfect for folks aiming to lead with adaptability and vision.
Simplify and Streamline Your Grant Work
You’re juggling deadlines, managing funders, and trying to make every dollar count. Let us take one thing off your plate. With Instrumentl, you can find, track, and manage all your grant opportunities in one intuitive, powerful platform, so you can spend more time doing the work that matters.
Thousands of nonprofits are already saving hours every week and securing more funding with less stress. Ready to join them?
100% Free Grant Writing Resources Straight to Your Inbox
