Category: nonprofit overhead myth

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Future-Proofing Nonprofit Fundraising: Thriving in a Changing Landscape

Dear Friends and Colleagues,

At Event Strategies For Success, we are always exploring forward-thinking approaches to nonprofit development. Today, we’re sharing an article by Lynette Battle, who is also one of our esteemed consulting blog contributors, offering insights into “Future-Proofing Nonprofit Fundraising: Thriving in a Changing Landscape.” As we continue to navigate shifts in the sector, we welcome diverse perspectives on these important topics.

In the wake of recent federal directives dismantling diversity, equity, and inclusion (DEI) initiatives, nonprofits serving historically excluded communities face unprecedented challenges in fundraising and development. This shift while adding new complexities to fundraising, grantmaking, and development efforts offers a new opportunity.

Diversity, Equity, and Inclusion (DEI) is not dead—it’s just evolving. As funding landscapes shift and legal scrutiny increases, nonprofits must adapt, strategize, and build resilience to continue their critical work.

Below are seven actionable steps your nonprofit can take to navigate fundraising and development in this new era.

1. Reaffirm Your Commitment to DEI

Now more than ever, it’s crucial to stand firm in your mission. Even as external pressures attempt to dilute DEI efforts, your organization must embed inclusivity into your DNA.

🔹 Reevaluate your mission statement to ensure it reflects your ongoing commitment.
🔹 Train staff and board members to communicate DEI principles effectively.
🔹 Develop messaging that underscores the universal benefits of diversity and equity.

With increased scrutiny on race-conscious programs, nonprofits must proactively ensure legal compliance in fundraising and grantmaking.

✅ Review funding criteria—if race-based, consider shifting to broader economic or geographic qualifiers.
✅ Engage legal counsel to assess potential risks and refine fundraising strategies.
✅ Explore alternative impact metrics to demonstrate your organization’s commitment to serving marginalized communities.

3. Diversify Your Funding Sources

Relying on a single funding stream is risky. With government and foundation grants under potential threat, your organization should build a well-rounded funding portfolio.

💡 Expand fundraising efforts to include:
✔️ Individual donors and major gifts programs
✔️ Corporate sponsorships with DEI-aligned brands
✔️ Community-driven fundraising campaigns

A diversified funding strategy enhances stability and reduces vulnerability to political and legal shifts.

4. Shift Focus to Socioeconomic Factors

If race-based initiatives are under legal challenge, consider addressing economic disparities instead. Many historically excluded communities face systemic barriers tied to income, education, and geography.

🎯 Funders may be more willing to support programs designed around:
✔️ Low-income status
✔️ First-generation college students
✔️ Small business owners from under-resourced communities

By broadening your criteria, your nonprofit can continue serving its core audience while staying legally compliant.

5. Strengthen Community Engagement

The most powerful asset in fundraising isn’t just money—it’s people. When communities feel truly engaged, they become ambassadors, advocates, and donors.

🚀 Ways to deepen community ties:
✔️ Host listening sessions to understand evolving community needs.
✔️ Encourage storytelling—real impact stories inspire donors.
✔️ Launch a peer-to-peer fundraising campaign where supporters can raise money within their networks.

Community engagement builds trust and attracts sustainable funding.

6. Advocate for Inclusive Policies

Nonprofits can’t afford to be silent in the face of shifting policies. While adapting to legal constraints, continue pushing for systemic change.

✔️ Join coalitions that advocate for inclusive funding policies.
✔️ Educate policymakers on the importance of DEI funding.
✔️ Leverage research to show the economic benefits of investing in historically excluded communities.

Your advocacy efforts can help shape a more equitable philanthropic landscape.

7. Educate Donors and Stakeholders

Many funders do not fully grasp the impact of affirmative action rollbacks. Your nonprofit must lead the conversation and ensure supporters understand the stakes.

💡 How to educate your donor base:
✔️ Host webinars on how legal changes affect funding for underrepresented groups.
✔️ Share impact reports showing how your work fosters economic mobility.
✔️ Provide clear donation options tied to specific outcomes.

When donors see the urgency and impact of their support, they are more likely to remain committed.

The legal and political landscape may be shifting, but your mission is still vital. By staying proactive, diversifying funding, and deepening community engagement, your nonprofit can turn challenges into opportunities.

💡 Fundraising in the post-affirmative action era isn’t about retreating—it’s about evolving.

What strategies has your organization adopted to navigate these changes? Share your insights! 👇🏾

References

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Smart Solutions for Small Budgets: Leveraging AI in 2025 to Drive Nonprofit Impact

Dear Friends,

As we embark on a new year, I extend my warmest greetings and best wishes for the journey ahead.

Today, I’m thrilled to share a compelling contribution from Lynette Battle, Event Strategies for Success’ trusted consulting partner. Lynette’s deep knowledge and insightful perspective offer a timely and thoughtful guide on how small and emerging nonprofits can harness the power of AI to amplify their impact in 2025.

For some nonprofits limited resources are often a significant barrier to achieving ambitious goals. Nonetheless, artificial intelligence (AI) is emerging as a vital tool that can bridge this gap. In 2025, nonprofits with smaller teams and tighter budgets can leverage AI to amplify their efforts, streamline operations, and secure funding that directly benefits the communities they serve.

Today we will focus on how AI can empower resource-strapped organizations and give actionable steps for the first quarter of 2025 to integrate AI into their fundraising and operational strategies.

Why AI Is a Game-Changer for Resource-Limited Nonprofits

Nonprofits serving underrepresented communities often face unique challenges, including:

  • Limited staff capacity for administrative tasks.
  • Difficulty accessing and managing donor data.
  • Limited time and skill for writing grants.
  • The need to connect with diverse donors who share their mission.

AI offers solutions tailored to these challenges:

  1. Affordable Tools for Automation: AI-powered platforms like Zapier, Mailchimp, and Donorbox automate repetitive tasks, such as email follow-ups, donor acknowledgments, and database updates, saving precious time.
  2. Accessible Grant Writing: AI grant-writing tools like Grantable and Instrumentl can help organizations draft competitive grant proposals quickly, even without in-house expertise.
  3. Insights Through Predictive Analytics: AI tools analyze historical donor data to forecast giving trends, allowing nonprofits to prioritize high-impact fundraising strategies.
  4. Amplified Storytelling: AI tools like Copy.ai and ChatGPT allow organizations to craft compelling narratives that resonate with donors, funders, and community members.
  5. Language Accessibility: AI-driven translation tools like DeepL make it easier to communicate with diverse audiences in their native languages, broadening the reach and inclusivity of campaigns.

First Quarter 2025: A Practical AI Implementation Plan for Nonprofits

For nonprofits with limited resources, the key to adopting AI is starting small and focusing on tools that offer the highest return on investment. Here’s a step-by-step guide:

January

  • Audit Your Needs: Identify the tasks that consume the most time and resources, such as donor outreach, grant writing, or reporting.
  • Select AI Tools Within Budget: Research affordable or free AI tools. Platforms like Trellis (for fundraising events) and Grantable (for grant writing) offer features designed for small organizations.
  • Train Your Team: Dedicate time to learning how these tools work. Many offer free webinars and tutorials to get started.

February

  • Streamline Donor Engagement: Use AI to segment your donor list by giving history and interest areas. Tailor your messaging to each group for more effective outreach.
  • Launch Targeted Campaigns: With tools like Canva AI, create professional-looking campaign materials for social media and email to amplify your message.
  • Explore Grant Opportunities: Use AI platforms like Instrumentl to identify grant opportunities that align with your mission. Draft initial proposals and fine-tune them using AI-assisted editing tools.

March

  • Leverage AI for Reporting: Use AI to compile and analyze data for donor impact reports and grant applications. Tools like Tableau Public can visualize data effectively, even for small budgets.
  • Engage Your Community: Use AI-powered chatbots to answer common questions from donors or community members, providing a better experience without overburdening staff.
  • Evaluate and Adjust: Assess the effectiveness of AI tools implemented during Q1. Adjust strategies based on what worked and identify areas for further improvement.

Using AI for Grant Writing: A Lifeline for Small Nonprofits

Grant writing can be a time-consuming process, especially for organizations without dedicated development staff. AI grant writing tools like Grantable and Foundant can:

  • Generate drafts of grant applications based on your mission and past successful proposals.
  • Provide prompts and suggestions to improve the clarity and impact of your narrative.
  • Save time by automating research on potential funders.

These tools allow nonprofits to focus more on their mission and less on administrative tasks, increasing the chances of securing vital funding.

Empowering Communities with AI

AI tools are not just about increasing efficiency—they’re about leveling the playing field. By adopting AI, nonprofits serving underrepresented communities can:

  • Tell their stories more effectively.
  • Expand their donor base beyond traditional audiences.
  • Compete for funding opportunities with larger organizations.

The key is starting small, focusing on affordable and accessible tools, and building capacity over time.

Parting Thoughts

For nonprofits serving underrepresented communities, AI represents an unprecedented opportunity to overcome resource limitations and make a greater impact in 2025.

By implementing AI strategically in the first quarter, organizations can streamline their operations, secure funding, and connect with their communities in new and meaningful ways.

Whether automating workflows, crafting compelling content, or simplifying grant writing, these AI solutions offer a cost-effective way to maximize organizational impact in 2025.

Always remember we at Event Strategies For Success are here to support you. If you have any questions, or would like more information, please contact us.

Fondly,

Monique

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Empowering Brooklyn: My Journey with the Brooklyn Org Community Advisory Council

A view of Brooklyn, NY from the waterfront

Dear Friends and Colleagues,

For the second year in a row, it has been my privilege to serve as a member of Brooklyn Org’s Community Advisory Council. This year’s council is comprised of 12 passionate and committed Brooklyn residents, each of us bringing our unique backgrounds and professional insights to our work. Together, we play an integral role in reviewing funding applications from Brooklyn nonprofits. A highlight of our work is visiting local organizations and helping to ensure that funding is directed where it is most needed.

Courtesy Brooklyn Org

Serving Brooklyn Through Community Leadership

The organizations we have had the honor of supporting span diverse sectors, with a focus on critical areas like healthcare, housing, education, and economic development. Every site visit reinforces the essential work these community-based organizations in Brooklyn are doing, and it’s incredibly fulfilling to be part of a process that amplifies their efforts across the borough.

As the team at Brooklyn Org so eloquently puts it, “Their role extends beyond simple advisory duties—they become advocates for the nonprofits we fund, offering their diverse perspectives to ensure that each grant meets the needs of Brooklyn’s most under-served communities.” This statement rings true, and I couldn’t be prouder of our work collectively. Our combined efforts are making a tangible difference in the lives of thousands of Brooklyn residents, and I’m honored to contribute to that impact.

Participatory Grantmaking: A Community-Centered Approach

Through our participatory grantmaking in Brooklyn, we are able to ensure that the voices of the community are at the center of our decision-making. Brooklyn Org is doing incredible work, and its impact can be seen and felt throughout the borough. I am proud to contribute to this important mission through my work with the Community Advisory Council. If you are a nonprofit leader or supporter, click the link below to learn how Brooklyn Org can support your mission.

Why Brooklyn Inspires Me

When asked what impresses me most about Brooklyn, here is what I shared:
“Brooklyn’s charm lies in its diverse community and the lively tapestry of its sights and sounds. Our differences not only define us but also bring us together, fostering a united spirit that strengthens our borough and makes it a wonderful place to call home.”

Here’s to your success!

Monique

Don’t forget to reach out to Brooklyn Org! Brooklyn Org’s Nonprofit Resources.

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Breaking the Barriers: Overcoming the Nonprofit Overhead Myth for Greater Impact

Dear Friends and Colleagues,

Here at Event Strategies For Success, we frequently encounter the challenging ‘overhead myth’ in our work within the nonprofit sector. This myth, deeply entrenched in the assessment and support of organizations, originates from the ‘overhead ratio’ concept. This ratio compares a nonprofit’s budget allocation for administrative and operational costs, such as rent, utilities, and salaries, against its direct program expenses.

Historically, a low overhead ratio has been synonymous with nimbleness and effectiveness in the eyes of funders, rewarding such organizations for perceived “efficiency.” However, this view overlooks the complexities of nonprofit operations, especially for those serving underrepresented communities. Organizations deemed more “efficient” often benefit from robust revenue streams and in-kind support, such as reduced office space costs or endowed positions, which are not typically available to community-based nonprofits.

Many local organizations, particularly those serving the most vulnerable, navigate a different fundraising landscape. Their financial support often relies on government grants, limited corporate funding, and a significant focus on special events to meet various needs.

Funders’ adherence to the overhead myth fails to acknowledge the true nature of running a nonprofit. Delivering high-quality services necessitates significant investment in infrastructure, skilled staff, and operational support—factors essential for success but categorized as overhead. This misperception leads to several adverse outcomes:

  • Underfunding: Nonprofits struggling to secure sufficient resources often need help to scale or sustain their impact effectively.
  • Compromised Quality: To maintain a low overhead ratio, nonprofits may compromise program delivery due to overhead. As a result, critical areas may be underfunded, diminishing the quality of services offered.
  • Staff Retention Challenges: The emphasis on minimizing overhead can result in inadequate staff compensation and support, contributing to high turnover rates among capable employees.

Recognizing these issues, leading nonprofit authorities such as GuideStar (now part of Candid), the BBB, and Charity Navigator have long opposed using the overhead ratio as the primary measure of a nonprofit’s effectiveness. Their 2013 joint statement was a pivotal call to action, urging a more comprehensive approach to evaluating nonprofits.

Parting Thoughts

At Event Strategies For Success, while we recognize the necessity of prudent financial management, we also firmly believe that effective operation frequently necessitates reasonable overhead expenses. Adopting a nuanced perspective that appreciates the complexities of nonprofit management is essential for these organizations to achieve their missions and generate substantial impact.

In this context, I want to share a thought-provoking TED Talk by Dan Pallotta. He challenges traditional views on nonprofit operations and advocates for a paradigm shift from minimizing overhead to maximizing impact. Pallotta’s perspective aligns with our mission at Event Strategies For Success, where we strive to amplify our clients’ impact locally and globally. This talk prompts us to ponder our aspirations and resource allocation and redefine success to reflect the true essence of our transformative work.

I invite you to watch this inspiring talk and join us in rethinking how we approach funding and support for nonprofits, ensuring more effective outcomes for the communities they serve.

Fondly,

Monique

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