Episode Summary

Episode Overview

Podcast: Nonprofits Are Messy: Lessons in Leadership | Fundraising | Board Development | Communications
Host: Joan Garry
Guest: Bethany Mackey, Executive Director of Progressive Multiplier Fund & Action Fund, CEO of Multiplier Effect
Episode: Ep 249: Financial Resilience Isn’t Luck – It’s Strategy
Date: March 14, 2026

This episode tackles the critical topic of financial sustainability in the nonprofit sector. Joan Garry interviews Bethany Mackey, who leads the organization Progressive Multiplier, about what genuine financial resilience means and how nonprofits can deliberately build it through intentional strategies. The conversation dives deep into practical frameworks, mindsets, and tactical adjustments that lead to more stable, diversified, and self-sufficient organizations.

Key Discussion Points and Insights

1. The Funding Challenge Landscape

• Revenue generation and financial sustainability remain top concerns for nonprofit leaders, particularly in a climate where reliance on single funding streams (like government grants) exposes organizations to risk.
• The nonprofit landscape continues to shift, forcing leaders to rethink how to diversify and future-proof revenue (00:00).

2. Bethany’s Professional Journey and Perspective

• Bethany started out in sports marketing, but realized the private sector’s profit motives didn’t align with her values.
• Transitioned to nonprofit marketing, working with health organizations, then digital fundraising, and eventually leading programs at Progressive Multiplier:
  "I really hated that at the end of the day my efforts were about…making my boss and the company a profit. So I of course decided to look into nonprofit marketing as young people who want to be the change tend to do." – Bethany (03:31)

3. Progressive Multiplier: Multi-Layered Approach

• Belief: "Making sure that the financial means of justice are as durable as the purpose they serve." (05:14)
• Programs:
  • Catalyst, Lab, Convergence: Experiment and share models for revenue generation, give safe spaces for nonprofits to try new funding methods, and influence the broader sector infrastructure.
  • Strengthen both immediate and long-term financial engines for the progressive movement.
• Philosophy: Share what works freely—no gatekeeping successful models (06:14).

4. What Is Independent Revenue Generation (IRG)?

• Definition: Money not coming from grants; includes individual donors, earned income, and other sources.
• Many movement groups are up to 90% institution/grant funded, creating risk and a lack of autonomy.
• IRG allows nonprofits to “turn their own keys”—strategically direct their own work without waiting on or responding to external funder priorities (07:54).
• Financial Resilience Equation: Enough resources (including UNRESTRICTED funds), from diverse sources, plus the right internal practices.

5. Progressive Multiplier’s Four Main Areas of Support

(10:56)

• Spark Program: Prepares small/rural groups by building or fixing foundational infrastructure (the “leaky bucket” analogy).
• Surge Program: Implements proven revenue models for mature groups (from donor programs to fee-for-service).
• Roadmap Program: Growth planning—where to confidently invest the next dollar for growth.
• Lab Program: Research and development (R&D) for new methods; experimentation grants for new or adapted tactics.

6. Case Study: Unite Oregon

• Surge Grant: Built a sustaining (recurring) donor program for their C4—a more nuanced challenge than C3 fundraising.
• Lab Grant: Monetized a civic education program through corporate sponsorships, tapping into supporters active during local protests (15:08).
• Capital Campaign Innovation: Combined grassroots, small-dollar contributions with traditional big-check fundraising for a new community center, bypassing the “your name on a building” approach and making participation accessible.

7. Building for Success: Concrete Advice for Leaders

(17:39)

• Mindset Shift: EDs must see at least 50% of their job as fundraising, moving away from the “that’s the development director’s job” mindset.
  • "The ED has to get that at least half of their job is fundraising…that is the number one thing that has to happen for people to be successful..." – Bethany (18:49)
• Board Role: Boards should treat sustainability and resilience as part of their core responsibilities, sometimes even approving “deficit budgets” or using reserves to make strategic investments in infrastructure (21:56).
  • "Sometimes a deficit budget—or taking some of your savings or reserve…and actually using it to make sure you can be that foundation as strong and stable for the future." – Joan (22:26)
• Staffing Revenue Generation: "You have to staff revenue generation like you would staff any program." Avoid “side of desk fundraising” and fundraise with intention and adequate personnel.
  • *"Revenue generation is a discipline that you cannot do off the side of your desk. You have to staff [it]…" * – Bethany (24:25)
• Challenge the “Charity Watchdog” Mentality: The focus on spending 90%+ of budget on programs stifles necessary investment in fundraising and infrastructure (25:20).

8. Leveraging Large, Unrestricted Philanthropic Gifts

(29:39)

• Big gifts (e.g., MacKenzie Scott grants) should first address points of non-sustainability—analyze where the organization is fragile and use the funds to stabilize core operations and infrastructure.
• Example: Metro IAF used a Scott grant to help affiliates invest in CRMs and offered matching dollars for new sustaining donors (36:48).
• Nonprofits should base all decisions on the “all-in cost” of running programs, not just direct costs—institutionalizing this cost analysis is crucial (32:29).

9. Advice for Funders and Nonprofit Leaders

(38:39)

• For Funders: Be flexible; recognize that organizations are having to scenario-plan against unprecedented uncertainty and multiple possible futures:
  "We're having to hold multiple scenarios in a very different way than we ever have had before. So when funders are asking us…which one of these half dozen ways that this cookie may crumble do you want to talk about?" – Bethany (39:19)
• For Leaders: Don’t freeze when facing uncertainty. Take the next right step, rigorously scenario-plan, and maintain forward momentum even amid ambiguity.
• Leadership often means acknowledging difficult realities but continuing to plan and act nevertheless (41:36).

10. Community and Support

• Recognize the often-lonely position of the Executive Director; Progressive Multiplier and communities like Nonprofit Leadership Lab offer peer support and guidance (42:21).

Notable Quotes & Memorable Moments

• "Making sure that the financial means of justice are as durable as the purpose they serve." – Bethany (05:14)

• "IRG…is really simply money that isn't coming in from a grant…this money is so critical…it allows groups to essentially turn their own keys and drive their own strategies." – Bethany (08:06)

• "The ED has to get that at least half of their job is fundraising, is revenue generation. And I did say 5-0. So that's a shock to a lot of new EDs..." – Bethany (18:49)

• "Sometimes a deficit budget…actually isn't always [bad]…you need to invest in the infrastructure of the organization…" – Joan (22:26)

• "Revenue generation is a discipline you cannot do off the side of your desk. You have to staff revenue generation like you would staff any program." – Bethany (24:25)

• "If you have a network…how can you leverage that influx of cash to ensure all the downstream financial resilience?" – Bethany (36:48)

• "We're having to hold multiple scenarios in a very different way…when funders are asking us…which one of these half dozen ways that this cookie may crumble do you want to talk about?" – Bethany (39:19)

• "Don’t freeze. Take the next right step…as the scenarios come into fruition." – Bethany (41:21)

Timestamps for Key Segments

| Topic/Segment | Timestamp (MM:SS) | |----------------------------------------------------|-----------------------| | Host introduction & why revenue is top of mind | 00:00–02:14 | | Bethany’s origin story | 03:07–04:35 | | Progressive Multiplier’s vision/programs | 05:14–06:36 | | What is IRG & why is it important? | 07:54–09:41 | | Four ways Progressive Multiplier works with groups | 10:56–13:58 | | Unite Oregon Case Study | 14:18–17:39 | | What it takes to prepare for financial resilience | 17:39–20:56 | | Board’s role and deficit budgeting | 20:56–24:07 | | Why fundraising can’t be “side of desk” | 24:25–25:12 | | The watchdog myth & infrastructure investment | 25:20–28:31 | | How to use transformative grants like Scott’s | 29:39–37:23 | | Practical advice for funders & leaders | 38:39–41:36 | | On community and combating executive isolation | 42:21–43:19 |

Actionable Takeaways

• Financial resilience is not a happy accident. It is a strategic discipline built through diversified, unrestricted, and independent revenue—and it requires executive and board buy-in, proper staffing, and patient investment.
• Leaders must rigorously assess “all-in” costs and resist short-term thinking (or external pressures) that undermine long-term stability.
• Funders can help most by offering flexibility and understanding the unprecedented scenarios nonprofits now face.
• Investing in core infrastructure and revenue-generation capacity should be seen as just as vital as investing in programs.

Final Thoughts

Bethany’s core message: “Financial resilience isn’t luck—it’s deliberate, often difficult, but always strategic.”
Joan sums up the spirit of the episode: “Multiply all the good…we’re working on it. We’re going to keep going.”