Episode Summary: What the Fundraising – Ep. 274

A New Era of Fundraising: Blending Purpose and Profit with Zach Hynek

Host: Mallory Erickson
Guest: Zach Hynek
Release Date: December 16, 2025

Overview

In this insightful and energetic episode, Mallory Erickson welcomes social entrepreneur Zach Hynek for a conversation about the evolving landscape of fundraising and social impact leadership. The discussion centers on blending purpose and profit, adapting business practices for greater nonprofit effectiveness, embracing innovative tools (like AI), and the human side of sustaining motivation and alignment. The episode is candid, practical, and deeply empathetic—offering listeners both inspiration and actionable ideas for changing the way organizations approach impact and resource development.

Key Discussion Points and Insights

1. The Shifting Landscape of Impact-Driven Work (02:40–05:39)

• Interdisciplinary Careers in Impact:
  Zach shares his journey as a new father, MBA student, board member, and founder of ventures dedicated to social good. He emphasizes the importance of aligning one’s own mission with societal benefit, regardless of sector.

  “How can we help people navigate a lot of the changes and turbulence, but also talk about some of our favorite topics, which are fundraising and how can we best get the resources and access to the help that we need to do our best work…”
  — Zach Hynek (03:32)

• Flexible Pathways to Impact:
  Both Mallory and Zach underscore that their North Star is making a positive difference, while being flexible and open to the pathways and business models that get them there.

2. Blending Purpose With Profit: Social Venture & ROI Mindset (05:39–10:45)

• The Rise of Social Entrepreneurship:
  Zach explains that starting for-profit ventures with a social mission is increasingly common and effective.

  “People who are actually starting for-profit businesses and entities with the sole purpose in mind of completing a mission… There’s so much that having resources and capital can give you.”
  — Zach Hynek (05:50)

• Nonprofits as Undervalued Economic Engines:
  He highlights the chronic under-resourcing of the nonprofit sector and advocates for paying competitive wages and investing in organizational infrastructure.

• Return on Impact:
  Zach draws a parallel between for-profit ROI (Return on Investment) and nonprofit measures, suggesting a “Return on Impact” mindset is crucial for shifting perceptions and attracting new types of funders.

3. Learning From Startup Culture: Adopting Business Rigor in Fundraising (07:55–14:16)

• The Startup Fundraising Mindset:
  Mallory reflects on the clarity, decisiveness, and boundaries often exercised in startup fundraising—as opposed to the incremental, “do more with less” culture prevalent in nonprofits.

  “It’s just such a different mindset around… it’s going to take this amount of money to do this thing, and if we don’t get there, we don’t do it. I’m not saying that the nonprofit sector should necessarily adopt that completely, but…”
  — Mallory Erickson (09:58)

• Valuing Financial Rigor in Nonprofit Storytelling:
  Zach advocates for nonprofits to adopt financial and quantitative approaches in grant-writing and donor communications.

  “There are so many of these funders who…see in ones and zeros. And I think that how do we align part of our messaging to that, which is—there’s a level of financial rigor to that; there’s a level of quantitative storytelling that is really impactful.”
  — Zach Hynek (10:45)

• Bringing in Behavioral Economics:
  Both discuss the value of leveraging behavioral science and university research to better align nonprofit incentives and donor motivations.

4. Embracing AI and Technology—But Staying Critical (10:45–14:16)

• AI as an Empowerment Tool:
  Zach highlights AI’s potential to help nonprofits “do more with less,” automate research, and target grant opportunities more effectively.

  “I see AI as empowering an industry and sector that finally has an opportunity to do more with less… help organizations fundraise more effectively, tell more data-driven stories and apply for grants…”
  — Zach Hynek (13:08)

• Cautious Optimism:
  He acknowledges skepticism about technology, rooted in past disappointments (like social media’s overpromises), but urges the sector not to “immediately shun it.”

5. The Human Side: Managing Relationships, Overwhelm, and Balance (15:07–19:54)

• The Challenge of Relationship Management:
  Mallory voices the personal overwhelm nonprofit leaders face in maintaining vast networks and doing relationship-driven work:

  “The amount of pings and dings and notifications... can make it feel so overwhelming to continue to build social networks and manage that amount of relationships.”
  — Mallory Erickson (15:32)

• Prioritizing, Letting Go, and Focusing:
  Zach draws from anthropology and psychology, noting most people can only maintain about 100–150 meaningful connections. He encourages leaders to accept human limitations and instead focus on deep alignment and priority.

  “There’s some things that aren’t meant to be scaled or automated... Sometimes the world doesn’t work in that capacity or that way… Give yourself this acknowledgment, there’s only so much I can be most effective.”
  — Zach Hynek (17:15)

• Importance of Support Systems:
  He credits his wife and family for enabling balance and reminds listeners, especially men, to strive for balance and be present at home, not just at work.

• Embracing the Messiness and Humanity:
  Both agree that not every relationship or initiative will succeed and that’s normal—especially in spaces trying to create systemic change.

6. The Value of Flexibility and Remote Work (19:54–20:50)

• Remote Work’s Silver Lining:
  Zach and Mallory reflect on the “new normal” of integrating work and life—including kids appearing on Zoom—and the flexibility remote work affords leaders juggling multiple roles.

  “We are human beings 24/7... I always appreciate, you know, the work that you put into the space and trying to normalize the human part of fundraising at the center of everything you do. So, Mal, I adore you as always.”
  — Zach Hynek (20:35)

Notable Quotes & Memorable Moments

• On Social Ventures and New Funding Models:
  “That ROI is just really a return on impact as opposed to return on investment.”
  — Zach Hynek (07:17)

• On Adopting Business Principles in Nonprofit Work:
  “Why are we so afraid to adopt successful strategies that we know are proven to work, especially when we know our mission is to do… more often than not, good in our sectors?”
  — Zach Hynek (10:45)

• The Limits of Relationship Management:
  “Psychology… says you probably can't store that many relationships…in your head. So I think there’s some things that aren’t meant to be scaled or automated.”
  — Zach Hynek (16:55)

• Self-Compassion and Priorities:
  “Give yourself this acknowledgment, there’s only so much I can be most effective. So that's where that alignment really is most important.”
  — Zach Hynek (17:20)

• On Humanity and Fundraising:
  “It's not the craziest thing if your kid shows up on a Zoom call… We are human beings 24/7.”
  — Zach Hynek (19:54)

• Call to Action:
  “If you’ve got some energy to give, shoot good time, get some extra capital to give—come on, spend those checks… We’ve got some work to do.”
  — Zach Hynek (20:50)

Timestamps for Important Segments

• 02:40 – Zach’s background, career journey, and personal mission
• 04:43 – How alignment and flexibility drive innovation in impact work
• 05:39 – Social entrepreneurship, paying nonprofit workers fairly
• 07:17 – Explaining “return on impact” for the nonprofit sector
• 09:58 – Comparing startup and nonprofit fundraising mindsets
• 10:45 – Adopting financial rigor, quantitative storytelling, and behavioral science
• 13:08 – Responsible adoption of AI and technology tools
• 15:32 – Managing overwhelm and the “relationship economy” in fundraising
• 16:55 – The psychology of connection limits and prioritization
• 19:54 – The benefits and normalization of remote work for nonprofit leaders
• 20:50 – Motivational wrap-up and call to action

Takeaways and Guidance

• Think outside the box: Don’t be afraid to experiment with for-profit models or tech tools if they advance your mission.
• Prioritize alignment: Seek work, partnerships, and projects that fit your deeper purpose—even if this means letting some relationships or tasks go.
• Adopt business discipline: Using tools from business, like financial tracking, behavioral economics, and clear milestones, can strengthen nonprofit strategies.
• Embrace your humanity: It's okay to acknowledge limitations, ask for help, center family and mental health, and show up imperfectly.
• Invest in relationships, but accept natural limits: Strive for genuine connection, but relieve the pressure to maintain wide, deep networks.

This episode offers a warm, practical, and future-oriented discussion for any impact leader seeking new models, mindful experimentation, and a reminder that purpose and profit are not mutually exclusive.