It's Not Netflix!

Hey Nonprofit Leader, What's Keeping You Awake at Night?

I just wrapped up teaching a 7-week Grant Proposal Writing course for UCR Extension. It’s part of a six-course series for a Certificate in Nonprofit Management, sponsored by the Regional Access Project Foundation. Now, anyone who knows me knows that teaching is my first love (sorry, coffee). And, not to brag (okay, maybe a little), but I’m pretty good at breaking down even the most boring topics into digestible, bite-sized pieces—kind of like turning Brussels sprouts into chips. You still get the benefits, but it’s way more fun.

For this course, we used The Only Grant Writing Book You’ll Ever Need by Ellen Karsh and Arlen Sue Fox—a title that doesn’t leave much room for sequels. It’s packed with tips, from funders’ “pet peeves” to sample letters and abstracts. In short, it’s the Swiss Army knife of grant writing.

But what really caught my eye was Chapter 18: “When Grant Funding Needs a Boost, Build a Business! (Hint: It Can Be Small).” This chapter is a wake-up call for nonprofits stuck in a cycle of grant applications and gala dinners. Yes, your mission is noble. Yes, your galas are fabulous. But let’s get real—most nonprofits aren’t thinking like businesses, and that’s a problem.

Your Nonprofit Is a Business (Yes, Really)

It’s time for some tough love: your nonprofit is a business with a fancy IRS classification. And while you might have a killer strategic plan and a solid development plan, if you’re not thinking about revenue diversification, you’re basically building a house of cards—on a windy day.

In my consulting work, I always ask clients about their “revenue buckets.” If I find out that 80% to 90% of their funding comes from one source, I wonder how they’re not losing sleep. A 10% funding cut might not seem like much—until it happens year after year. Then it’s a full-blown nightmare.

Entrepreneurial Thinking: Not Just for Startups

Chapter 18 tosses out some cute grassroots ideas—like bake sales and renting out your space—but also encourages nonprofits to think bigger and a bit more, well, entrepreneurial. For-profit businesses are constantly hustling to diversify their revenue streams, so why shouldn’t you?

A good place to start is with fee-for-service programs that align with your mission. For example, if you’re an education-focused nonprofit, consider offering paid workshops or certification programs. Yes, you can charge on a sliding scale, so no one’s left out. Also, there’s a theory that people value things more when they actually have to pay for them. In other words, a little skin in the game makes the experience way more meaningful.

Then there’s the social enterprise route—basically, starting a small business that advances your mission while also making money. Think thrift stores, cafés, or craft businesses. The goal is to balance financial sustainability with meaningful social impact.

Real-Life Examples to Steal (or “Inspire” You)

When Desert Best Friend’s Closet (DBFC) moved to a bigger space, we launched a full-time thrift boutique instead of just doing end-of-month sales. The result? We were less dependent on grants and fundraisers and actually started to breathe a little easier.

Here in Coachella Valley, we’ve got some other solid examples. Coachella Valley Rescue Mission (CVRM) runs Mission Catering, providing real-world job experience for residents while generating revenue. They also operate successful thrift stores. Desert AIDS Project (DAP) runs Revivals thrift stores to fund their programs. And, of course, the Girl Scouts’ cookie empire teaches young women marketing, goal setting, and business skills—not to mention funding camps and trips that most families couldn’t afford. Let’s be honest, those Thin Mints are practically currency.

Sleepless in Nonprofit Land?

Running a nonprofit is no joke. There are a million things that can keep even the most seasoned leader awake at night—funding cuts, donor fatigue, or just that one gala guest who cornered you to talk about their cat’s special diet.

If you’re tired of tossing and turning over donations and grants, maybe it’s time to think creatively. Let’s chat! Sometimes, all you need is a fresh perspective and a solid plan to start sleeping like a baby (or at least a well-funded nonprofit).

So, what’s keeping you up at night? Whatever it is, I’ve got ideas—and maybe even coffee.