A Modern Nonprofit Podcast · The Charity CFO, LLC

Episode 147: Unrestricted Revenue: The Lifeblood of Nonprofit Agility and Growth

·30 min·2 clips

Only 20% of U.S. philanthropy is completely unrestricted, so 80% comes with strings attached.

1. A Modern Nonprofit Podcast Episode 147 centers on unrestricted revenue and nonprofit agility and growth. 2. Tasha Anderson hosts the show, Aaron Landis is Director of Business Development at the Charity CFO, and his job is to hear nonprofit leaders' pain points. 3. The episode asks why unrestricted revenue is a game changer for nonprofit leaders who need breathing room, staffing support, and room to reinvest. 4. Aaron says the most vulnerable organizations are often funded by one or two large government contracts with little or no margin for overhead or infrastructure. 5. Tasha cites the Charity CFO Financial Blueprint principle number 15, which focuses on unrestricted revenue and the importance of diversifying revenue composition. 6. Aaron says unrestricted funding helps nonprofits invest in staff, technology, remote work, accounting systems, and other operational supports. 7. Tasha notes that typical nonprofit budgets often spend 60% to 80% on people-related expenses such as salaries, benefits, taxes, fringe, and professional development. 8. Aaron compares growth to a ladder-step pattern, saying organizations sometimes need big, bold investments rather than a smooth diagonal increase. 9. Tasha cites a statistic that only 20% of U.S. philanthropy is completely unrestricted, meaning 80% of dollars arrive with specified directions. 10. Aaron says donor support can still align with mission work even when funds are general operating or capacity building instead of narrowly earmarked. 11. Aaron points to a group36.org survey where 56% of nonprofits said unrestricted gifts launched new programs and 61% said they expanded existing programs. 12. The same survey showed 90% of organizations said unrestricted funds improved long-term sustainability. 13. Tasha defines sustainability as reserves in the bank, easier sleep at night, and more room to improve compensation, benefits, and infrastructure. 14. Aaron describes a client that shifted from restricted grants and government funds toward corporate sponsorships and individual donors, which expanded its audience, messaging, and programs. 15. Tasha gives a church example that uses a “one fund” approach and resists separating money into highly restricted pots like flower funds and Easter flower funds. 16. Aaron says donor education and reporting back are part of an accountability cycle that shows how unrestricted support creates impact. 17. The conversation is practical, conversational, and anchored in specific client stories, budget examples, and quoted benchmarks. 18. Tasha and Aaron speak in an interview format with frequent back-and-forth prompts and accountant-focused commentary. 19. People running nonprofit finance, development, or board strategy work will likely benefit. 20. Listeners wanting case law, policy analysis, or theory-heavy fundraising debate may skip it.

Listen to the show on

Apple Podcasts Spotify

Play clips from this episode More from A Modern Nonprofit Podcast