Many nonprofit leaders celebrate raising money, yet still find themselves unable to pay the bills. In this episode, Matt Stockman unpacks one of the most common and dangerous funding traps facing small and growing nonprofits: an overdependence on restricted giving.

You will learn why restricted gifts are not the villain, how they can quietly undermine your organization’s stability, and how to shift donor conversations toward healthier, mission-aligned support. Matt walks through real examples, practical frameworks, and specific language you can use to educate donors, build trust, and protect your nonprofit’s long-term impact.

If your programs are funded but your operations are constantly under pressure, this conversation will change how you think about fundraising and sustainability.

Key Takeaways

• Why restricted gifts feel like success but often create hidden financial strain
• The difference between fundraising problems and funding alignment problems
• What truly happens when operations are underfunded
• How to decide which restrictions your organization can responsibly accept
• How to reframe donor conversations around unrestricted and operational support
• Practical language you can use to position donors as heroes while protecting your mission
• Why early-stage nonprofits need flexibility more than restriction

Topics Covered

• Restricted vs. unrestricted giving
• Nonprofit sustainability and operational funding
• Board education around financial health
• Donor trust, transparency, and communication
• Ethical stewardship and leadership responsibility
• Building long-term organizational resilience

Action Steps for Listeners

1. Review how much of your current funding is restricted.
2. Compare your funding structure to your actual operational needs.
3. Identify restrictions you can no longer responsibly accept.
4. Begin intentionally educating your board and donors on why operations funding matters.
5. Start reframing fundraising conversations around aligned generosity and long-term impact.

Resources Mentioned

Free PDF:
From Dream to Action: Your Nonprofit Pre-Launch Checklist
Email: matt@nonprofitlaunchplan.com
LinkedIn: https://www.linkedin.com/company/nonprofit-launch-plan
Website: Nonprofit Launch Plan | Consulting & Fundraising for Nonprofits