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How Does Financial Sustainability Relate to Growth–and What Can Grantmakers Do to Support It?

Publication date: 
October, 2011

Healthy and financially sound nonprofit organizations are a critical precursor to growing impact. Efforts to improve organizational health are particularly challenging in the current economic climate, in which nonprofits have fewer resources and feel increased pressure to deliver results. As a result, nonprofits can end up chasing revenue, which can lead them to stray from their mission. This Grantmakers for Effective Organizations briefing paper explores the role grantmakers can play in assessing and nurturing an organization's internal health, while putting them on track to financial sustainability. By achieving financial stability nonprofits gain the ability to adapt over time, meet unanticipated needs and plan for the future, including growing their impact.

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