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The New Reality for Nonprofit Funding

For decades, nonprofits have relied heavily on a mix of grants, donations, and government funding to sustain their missions. But as global philanthropy evolves, those traditional sources are becoming less predictable. According to The Nonprofit Finance Fund's 2024 State of the Nonprofit Sector Report, nearly 56% of nonprofit leaders said funding uncertainty is their biggest operational challenge.

On a recent episode of the Nonprofit MBA Podcast, host Stephen Halasnik and guest Joe Reed, founder of the Exponent Group and SolveLine, discussed an urgent question: What happens when your biggest grant disappears? Their answer—nonprofits must begin to think like startups, diversifying income streams and even launching mission-aligned for-profit ventures to ensure long-term impact.

"We don't have the luxury to not have this conversation anymore," Reed emphasized. "Healthy nonprofits must start thinking creatively about how they generate revenue."

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