The Fundraising Masterminds Podcast
Episode 92: The #1 Reason for Nonprofit Failure
Release Date: May 14, 2025

Introduction

In Episode 92 of The Fundraising Masterminds Podcast, hosts Jason Galasinski and Jim Dempsey delve into a critical and often sensitive topic: the number one reason nonprofits fail. This episode stands out as a more serious and introspective discussion compared to their usual light-hearted approach, aiming to uncover the root causes that lead to the downfall of many nonprofit organizations.

Defining Success and Failure

The conversation begins with the hosts emphasizing the importance of defining failure by understanding success.

• Jason Galasinski (00:25): "Mission drift is completely off from where their founders envisioned. But I think it would be good to define failure by looking at what success is."
• Jim Dempsey (00:34): "Accomplishing your mission, staying on target with your mission, that is what success is."

By framing success as the consistent achievement of an organization's mission, they set the stage for identifying factors that cause deviations from this path.

Identifying Symptoms of Failure

Jim and Jason list various symptoms that indicate potential failure, such as lack of strategic planning, poor budgeting, ineffective development plans, misaligned or unmotivated staff, and mission drift.

• Jim Dempsey (03:13): "Most of the time, it's because people don't plan. You know, strategic plan no strategic plan when we plan to fail because we failed to plan."

They also discuss common pitfalls like assembling boards based on friendships rather than strategic fit, which often leads to weak governance and inadequate fundraising efforts.

The Core Issue: Resistance

The crux of the episode revolves around the concept of resistance as the primary reason nonprofits fail. The hosts categorize resistance into two main types:

1. External Resistance: Uncontrollable factors such as economic downturns, natural disasters, or societal opposition.
2. Internal Resistance: Challenges within the organization, including procrastination, lack of focus, and internal conflicts.

• Jason Galasinski (10:20): "We believe that the number one reason why nonprofits fail is because of resistance."

Understanding Resistance

Jason and Jim break down resistance into more specific forms:

• Procrastination: Delaying important tasks undermines progress.

  • Jim Dempsey (26:48): "Every alternative is running through your head. You know, is this really, does this really matter?"

• Shadow Calling: Settling for less than one's full calling, avoiding the challenges of executing big visions.

  • Jason Galasinski (28:26): "The shadow calling is essentially where you don't embrace your full calling."

• Pleasure Over Fulfillment: Preferring short-term pleasures over long-term goals.

  • Jim Dempsey (29:54): "Focusing on the short term versus the long term."

• Full Sedation: Being overly busy with low-impact tasks, preventing meaningful progress.

  • Jason Galasinski (32:14): "You're so busy working in the business that you don't actually work on the business."

Notable quotes:

• Jim Dempsey (07:06): "Accomplishing your mission, staying on target with your mission, that is what success is."
• Jason Galasinski (25:36): "Sometimes the pathway to get that end result is not easy. It may be filled with potholes."

Steps to Overcome Resistance

The hosts outline a four-step strategy to combat resistance:

1. Recognize You Are in a War: Understand that leading a nonprofit is akin to engaging in a spiritual and organizational battle.

   • Jason Galasinski (14:39): "Step one is recognizing that you are in a war."

2. Understand the Lies of the Enemy: Identify and debunk the deceptive tactics used by resistance, such as procrastination and settling for mediocrity.

   • Jason Galasinski (25:36): "The enemy is constantly lying to us."

3. Realize Satan Opposes Big Dreams: Acknowledge that significant visions often attract more resistance, but persistence is key.

   • Jim Dempsey (36:05): "Sometimes the dinners with the greatest resistance are the ones that have the greatest success."

4. Overcome Resistance with Intentional Action: Take deliberate and purposeful steps towards achieving organizational goals, relying on faith and strategic planning.

   • Jason Galasinski (37:37): "You can overcome resistance by being intentional, by having intentional action."

Key strategies include:

• Prayer and Spiritual Alignment: Deepening the organization's spiritual foundation to strengthen resolve.

  • Jim Dempsey (45:01): "Take a day off and just pray. Get back to why you do what you do."

• Time Blocking and Strategic Planning: Allocating specific times for high-impact activities to ensure consistent progress.

  • Jason Galasinski (43:31): "Time blocking out his day and saying, I'm gonna take Wednesdays from 8am to noon. I'm gonna do this thing."

• Renewing the Mind: Adopting a mindset aligned with the organization's mission and rejecting limiting beliefs.

  • Jason Galasinski (40:49): "Renew your mind with truth, right? You got to read the word, you got to get into a relationship with the Lord."

Biblical and Practical Insights

The discussion is deeply rooted in Christian theology, referencing scriptures to underscore their points:

• Ephesians 6:12 (Jim Dempsey, 17:05): "For we do not wrestle against flesh and blood, but against the rulers..."

• Romans 12:2 (Jason Galasinski, 40:17): "Do not be conformed to this world, but be transformed by the renewal of your mind."

They emphasize that while failure is not inherently negative, how an organization responds to failure—by learning and persevering rather than succumbing—is crucial for long-term success.

Conclusion

Jason Galasinski and Jim Dempsey conclude the episode by reiterating that the primary reason nonprofits fail is succumbing to resistance. However, they offer hope by outlining actionable steps to overcome these challenges through intentional planning, spiritual alignment, and strategic execution.

• Jason Galasinski (44:47): "The good news is that you don't have to give into resistance. You can start today to make good choices."

They encourage listeners to engage with their mentorship programs and to share the episode with others who might benefit from the insights shared.

Key Takeaways

• Resistance is Multifaceted: Understanding both internal and external forms of resistance is essential for organizational resilience.

• Intentional Action is Critical: Strategic planning and deliberate actions help nonprofits stay aligned with their missions.

• Spiritual Foundation Matters: For faith-based organizations, a strong spiritual foundation can fortify leaders and teams against resistance.

• Continuous Self-Assessment: Regularly evaluating organizational practices and personal habits can help identify and mitigate resistance factors.

Notable Quotes with Timestamps:

• 00:25 - Jason Galasinski: "But I think it would be good to define failure by looking at what success is."

• 03:13 - Jim Dempsey: "Most of the time, it's because people don't plan. You know, strategic plan no strategic plan when we plan to fail because we failed to plan."

• 14:39 - Jason Galasinski: "Step one is recognizing that you are in a war."

• 25:36 - Jason Galasinski: "The enemy is constantly lying to us."

• 40:49 - Jason Galasinski: "Renew your mind with truth, right? You got to read the word, you got to get into a relationship with the Lord."

• 44:47 - Jason Galasinski: "The good news is that you don't have to give into resistance. You can start today to make good choices."

This episode provides nonprofit leaders with both theological and practical frameworks to identify and combat the resistance that threatens organizational success. By integrating strategic planning with spiritual resilience, The Fundraising Masterminds Podcast equips its listeners to lead their organizations towards sustained impact and mission fulfillment.