Derrick Daye Invites Charity to Rethink Sustainability

Derrick Daye Invites Charities to Rethink Financial Sustainability is one marketing veteran’s take on our sector’s financial future. Here’s what Derrick has to share:

The nonprofit sector stands at a crossroads. The challenges of today’s funding landscape are no longer temporary; they are structural. Donor fatigue, declining government support, and increased competition from both nonprofit peers and social enterprises have created an unsustainable dependency on traditional funding sources.

For decades, charitable organizations have relied on grants, donations, and contracts to fulfill their missions. But these streams are drying up, and the pace of change in our economy, technology, and donor behavior has outstripped the sector’s ability to adapt. The need for new, innovative revenue-generation models is not a matter of preference; it is a matter of survival.

That is what inspired my ongoing doctoral research at the University of Southern California. My dissertation, Innovative Revenue-Generation Strategies for Nonprofits: Reducing Dependency on Traditional Funding Sources in an Evolving Economy, explores how nonprofit leaders are finding creative, sustainable ways to fund their missions without sacrificing purpose or authenticity. I am now seeking executive-level participants to share their experiences and insights for this study.

EMAIL DERRICK AT [email protected] TO LEARN HOW YOU CAN PARTICIPATE IN THIS STUDY

The Problem: A Broken Funding Model

According to the Giving USA 2025 report, the optimism that economic stability would unlock Americans’ generosity was well placed. Charitable giving in 2024 reached an estimated $592.5 billion, representing 6.3% growth in current dollars and setting a new all-time high. This rebound follows years of volatility, including a 3.4% decline in 2022, the sharpest drop since 2008-2009.

While this resurgence offers encouragement, the structural vulnerabilities of the nonprofit funding model remain. Inflation and economic uncertainty continue to pressure operating costs and donor capacity, while government budgets for social programs show elimination and/or little expansion. At the same time, the number of nonprofits has reached record levels, intensifying competition for every dollar of support.

This reality underpins the central question guiding my dissertation: What innovative revenue-generation strategies can nonprofits employ to enhance financial sustainability, reduce dependency on traditional funding sources, and adapt to evolving economic and policy landscapes?

The goal is not just to document what is broken, but to illuminate what is working and how forward-thinking organizations are pioneering new paths to sustainability.

EMAIL DERRICK AT [email protected] TO LEARN HOW YOU CAN PARTICIPATE IN THIS STUDY

My Perspective: A Brand Strategist’s Lens on Nonprofit Resilience

For 25 years, I have advised global corporations, startups, and nonprofits as Managing Partner of The Blake Project, a brand consultancy dedicated to helping organizations build stronger brands and achieve competitive advantage. My clients have included Abbott, Coca-Cola, EA Sports, FootJoy, Marriott, and Southwest Airlines, among more than 200 others.

What I have learned across these disparate industries is this: strong brands attract resources more efficiently than weak ones. In the corporate world, a strong brand drives pricing power, customer loyalty, and investor confidence. In the nonprofit world, it attracts funding, talent, partnerships, and trust, the very resources needed to sustain impact.

This connection between brand strength and financial stability inspired me to bridge my consulting experience with academic research. I wanted to understand how nonprofit organizations could leverage relevant strategic tools that fuel corporate growth.

Why This Research Matters

The nonprofit sector has a remarkable history of purpose-driven innovation. Yet when it comes to revenue generation, innovation often lags. Traditional funding mechanisms such as grants, donations, and endowments have become fragile lifelines. Few organizations have built diversified portfolios capable of insulating their missions from the unpredictability of donor-dependent funding models.

My study seeks to surface examples of organizations that have broken this pattern, those that have:

• Launched successful social enterprises that align mission and margin.
• Developed fee-for-service models that monetize expertise or deliver value in new ways.
• Formed cross-sector partnerships that expand both reach and revenue.
• Leveraged intellectual property or brand licensing to create new income streams.
• Attracted impact investment through measurable social returns.

Each of these approaches represents a shift from dependency to autonomy, from scarcity to sustainability.

By interviewing nonprofit executives who have taken such bold steps, I aim to identify what work —and why —the conditions, mindsets, and brand factors that enable innovation to flourish.

EMAIL DERRICK AT [email protected] TO LEARN HOW YOU CAN PARTICIPATE IN THIS STUDY

The Role of Brand in Nonprofit Sustainability

A strong brand is more than a logo or tagline, it is a promise delivered consistently over time. It conveys trust, clarity, and emotional connection. In the nonprofit context, it also signals credibility to funders, alignment to partners, and belonging to supporters.

Drawing on decades of consulting experience, I have seen how brand strength contributes directly to financial and organizational performance. The same principles that drive stakeholder value in the corporate world can be reframed to help nonprofits achieve mission sustainability. Here are several benefits of strong brands that matter most for nonprofits:

1. Increased Funding Stability – Just as strong brands increase revenue and loyalty in business, nonprofits with trusted brands attract recurring donors and long-term institutional partners.
2. Greater Awareness and Reach – A well-known brand is more likely to be chosen by funders and supporters over lesser-known organizations, amplifying advocacy and fundraising efforts.
3. Enhanced Growth Opportunities – Strong brands make it easier to expand into new program areas, regions, or earned-income ventures because credibility travels with the name.
4. Higher Perceived Value – Nonprofits with clear, credible brands can command larger donations, sponsorships, and contracts because funders perceive them as lower risk and higher impact.
5. Second Chances – A respected brand encourages stakeholders to forgive missteps or setbacks, allowing organizations to recover faster from crises.
6. Market Protection – Distinctive brands create competitive barriers that discourage duplication and position the organization as the preferred partner in its cause space.
7. Clarity of Vision and Culture – A strong brand unifies internal stakeholders, enabling leaders and teams to focus energy and resources where they matter most.
8. Maximized Human Capital – Purpose-driven professionals want to work where the mission and reputation are strong. A compelling brand attracts and retains top talent.
9. Extended Lifespan – Organizations with adaptable, values-anchored brands outlast funding cycles and remain relevant as social needs evolve.
10. Stronger Alliances – A trusted brand facilitates partnerships with corporations, governments, and philanthropies that can multiply impact.

In short, brand strength is not just about visibility; it is about viability. It is a strategic asset that directly contributes to financial health and mission longevity.

EMAIL DERRICK AT [email protected] TO LEARN HOW YOU CAN PARTICIPATE IN THIS STUDY

Seeking Executive Voices: Your Experience Matters

To make this study as valuable as possible for the sector, I am conducting in-depth interviews with nonprofit executives who meet the following criteria:

• Current Leadership: Currently holds an executive leadership position (e.g., CEO, Executive Director, or equivalent).
• Sector Experience: Possess a minimum of 10 years of experience in the nonprofit sector.
• Leadership Tenure: Have served in an executive leadership role for at least 3 years.
• Organizational Profile: Are affiliated with U.S.-based 501(c)(3) organizations recognized for entrepreneurial, adaptive, or innovative approaches to revenue generation, with annual budgets of $1 million or more.

Each interview lasts approximately 45–60 minutes and is conducted virtually. Participation contributes to a growing body of research aimed at equipping nonprofit leaders with practical insights for the future.

If you meet these criteria, or can connect me with someone who does, I invite you to reach out. Your experience could help shape a framework that strengthens the financial foundations of the nonprofit sector for decades to come.

What the Sector Gains

The anticipated outcomes of this research are both practical and aspirational. Practically, it will provide nonprofit leaders with a set of tested, evidence-based strategies for diversifying revenue and building resilience. Aspirationally, it aims to shift the sector’s mindset from reliance to reinvention.

Key benefits include:

• A roadmap of innovative revenue models adaptable to different missions and scales.
• Case studies illustrating how strong brands can accelerate adoption of new funding approaches.
• Insights into leadership behaviors and organizational cultures that foster financial innovation.
• A framework for aligning mission integrity with entrepreneurial thinking.

Ultimately, this research seeks to empower nonprofits to move beyond survival mode and operate with the same confidence and strategic clarity as high-performing private-sector brands.

The Larger Vision: A More Self-Reliant Nonprofit Sector

Imagine a future where nonprofits no longer depend on unpredictable cycles of generosity, and mission-driven organizations generate sustainable income guided by brand clarity, operational discipline, and strategic creativity.

In that future, nonprofits would not just ask for support, they would create value that earns it. They would partner more effectively with businesses, governments, and investors. They would reinvest profits into their missions rather than diverting energy into endless fundraising appeals.

That is the world this research envisions: one in which purpose and profitability coexist, where strong brands fuel sustainable impact.

As someone who has spent a career helping organizations build brands that endure, I believe this transformation is both necessary and achievable. The same principles that drive growth and trust in the private sector can help nonprofits achieve greater independence and resilience.

But first, we need to learn from those who are already leading the way.

Join the Conversation

If you are a nonprofit executive who has experimented with new ways to fund your mission, or if you know of organizations that have, your insights are invaluable. Together, we can build a stronger, more sustainable future for the sector.

As Managing Partner of The Blake Project, Derrick Daye has spent decades helping some of the world’s most admired organizations define and articulate what makes them competitive and valuable. As a Doctoral Candidate at the University of Southern California, his research explores innovative revenue-generation strategies for nonprofit organizations. Reach him at [email protected]

3835 E. Thousand Oaks, Blvd Suite 303
Westlake Village, CA 91362-3637
(813) 842-2260
[email protected]

Derrick Daye Invites Charity to Rethink Financial Sustainability was first posted at INSIDE CHARITY

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