Over the next several months, we’ll discuss how small to medium-sized nonprofits with limited funding can stand out in a competitive landscape. This week, we’re focusing on Limited Risk-Taking—because competition is fierce and in a contracting environment, well placed resources are a must.
Thank you for reading this post, don’t forget to subscribe!Recently, we talked about High Stakes and how building resilience, diversifying revenue, and keeping morale high, your nonprofit can navigate uncertainty with confidence.:
“The emotional and operational weight of funding decisions typically hits around the 7–9 month mark of your fiscal year. By now, you’ve committed most of last year’s raised funds and are in the thick of the next fundraising cycle. The receipts—both incoming and outgoing—are piling up.
If the balance is positive, great—you have resources at your disposal. If it’s uncertain, financial strain can cloud day-to-day work, pushing your team into unnecessary survival mode. The feast-or-famine cycle taxes staff, donors, and volunteers, often leading to burnout and rushed decisions. Preparing for this reality can build resilience, stabilize your organization, and ease the emotional toll on your team.”
For many burgeoning nonprofits, competition is fierce, and that pressure often leads to playing it safe. If a program or initiative isn’t an absolute sure thing, it’s tempting to put it on the shelf—even if it has the potential for real impact. The result is less innovation, more redundancy, and a cycle of predictable, low-risk programming that may not reach the full potential you and your team are capable of.
The truth is, innovation is risky. But so is stagnation. The key isn’t eliminating risk—it’s managing it.
Foster a Culture of Innovation: Curiosity Over Caution
This is a tough one, so we’re starting here. Celebrating successes is important, but celebrating the same success year after year is a fast track to stagnation. Eventually, you will be left behind by organizations that evolve and adapt. If risk is something you avoid at all costs, then your past successes will become the very thing that holds you back.
Encouraging curiosity can’t be something that happens only when you have quiet time to reflect. It has to be part of board meetings, staff discussions, and even donor conversations. Different shouldn’t be synonymous with bad; it should be seen as an opportunity for growth.
As a leader, it’s hard to loosen the grip and allow staff or board members to bring ideas to the table. Sometimes we get so wrapped up in our vision for the organization that we forget to invite others along for the journey. But when you allow space for curiosity, it enlivens engagement and can spark new ideas for programming, fundraising, or nonprofit strategy. Seeking out innovation doesn’t mean you have to change immediately—it’s just the first step in the process. People need to know they can share ideas before they will.
Start Small: Test Before You Leap
There’s no reason to put everything on the line for one project. Smart resource management means testing ideas before making major commitments. Piloting new programming is one of the best ways to introduce innovation without assuming all the risk. Even adding “Pilot” to the project name sets expectations and lets everyone know they are part of a test. If it goes well, you have proof of concept.
Building in regular feedback along the way is essential. There’s no reason to wait for a six-month project to wrap before determining whether it was a success. If you track progress in real time, you’ll be able to adjust, refine, and increase the likelihood of success before it’s too late. If something doesn’t work, at least the failure was small. If you paid attention, you likely learned something valuable that will help improve the next round of testing. Innovation is messy, but with refinement, you’ll find the next big thing that truly serves your mission.
Mentorship: Teach Risk-Taking as a Skill
Not everyone is comfortable with risk. Some people naturally lean toward stability, and you don’t want to stifle ideas from those who are more risk-averse. Creating an environment where people can take chances without fear of failure requires intention. Pairing senior staff with new hires can help model a balanced approach to taking risks. Keeping a repository of past ideas—both the successful ones and the failures—allows team members to see what has worked and what hasn’t, helping them build confidence in making decisions.
If people are afraid of failure, they will only choose the safest route, and that’s a recipe for an organization that eventually fades into irrelevance. Taking risks is a skill, and like any skill, it takes practice. By reinforcing a sense of safety and learning through the process, you ensure that your team understands the messiness of innoovation and recognizes that it’s worth it when the right opportunity comes along.
… playing it safe is the real risk
If your nonprofit is stuck in a rinse-and-repeat cycle, it’s only a matter of time before another organization does it better, your mission loses relevance, or your best staff leave due to a lack of challenge and opportunity. But taking risks with donor dollars is no small thing, and no one wants to gamble with hard-earned resources.
That’s why calculated risks—supported by encouragement, testing before full launch, and tracking not just wins but lessons learned—are essential for keeping your nonprofit thriving.
If you want your organization to grow and remain relevant, you can’t afford to play it safe forever. The challenge is figuring out where to take the first small step. What’s one idea you’ve been holding back because you weren’t sure it would work? Maybe now is the time to test it.
At The Barrow Gang, we’re passionate about helping nonprofits reach their full potential. Whether it’s strategic planning, board growth, or fundraising, we have the tools to support your mission.
📅 Schedule a free 15-minute consultation to share what you’re working on and discover how we can help make your vision a reality.