Breadcrumb
In a recent high-impact webinar, Kevin L. Brown tackled one of the most entrenched problems in the nonprofit world: the nonprofit starvation cycle.
The nonprofit starvation cycle is a self-reinforcing loop where nonprofits are consistently underfunded, driven by unrealistic expectations for low overhead. To meet these expectations, organisations underreport their true costs – especially in the areas that matter most for long-term sustainability, like staff, systems, strategy and infrastructure – leading to chronic underinvestment and ultimately weakening their ability to deliver long-term impact.1
The nonprofit starvation cycle is clearly visible in the Australian cultural sector, where ACNC data2 shows that of the 1,805 charities registered with the primary purpose of "advancing culture", 81% operate on less than $500,000 annually, while only 5% manage budgets over $3 million. This highlights how few have the scale and resourcing to break free from the chronic underinvestment.
The core question Brown posed was bold and clear – how do we stop nonprofits from starving for funding while struggling to make their missions sustainable?
His answer: to get funding, be fundable and findable.
Part one: Be fundable
Brown argues being fundable is the first key. Being fundable means showing donors why you exist, what you do, who will do it, where you’re going, how to get there, and when it will be done. He introduced three practical laws for being fundable:
Law #1: A Pitch Without a Problem Is a Problem
A problem statement is the initial most powerful step in your fundraising communications. Lead with it. Donors must understand the issue before they invest in your solution. If people can’t quickly grasp what you’re solving, they’ll move on.
Law #2: Complicated Missions Complicate Funding
Sometimes we use so much fluffy language in our communications that donors fail to understand. Mission statements that try to do too much end up doing nothing. Brown’s advice: sharpen your mission until it’s crystal clear. Funders need to know exactly what you do in one breath. Be clear, concise, and compelling.
Law #3: Sell Donors Your Vision, Not Just Your Cause
The power of vision is proven. Sometimes nonprofits confuse their vision with their mission. A vision is where you want to go – and it needs to be audacious. Donors don’t invest in the status quo; they invest in change.
To bring the three laws together, Brown suggests having a bold, clear, one-sentence theory of change. Brown’s formula: “Because [WHY], we work [WHERE], to help [WHO] [WHAT] [HOW] in order to [WHEN]”. Short. Specific. Strategic.
Part two: Be findable
Being findable means occupying a distinct space in the minds of your ideal funders and routinely communicating your promises. You can’t raise money if nobody knows you exist. Here are the three laws Brown laid out for being findable:
Law #1: Difference Equals Donations
People are hardwired to compare. Donors ask: “What makes you different?” If you can’t answer that in five seconds, you’ll lose attention and funding. Being ‘better’ is subjective. Being different is tangible. Don’t be the ‘best’ – be the ‘only’.
Law #2: Diversified Funding Is a Nonprofit Nemesis
To grow significantly, Brown argues that chasing too many funding streams can kill focus and momentum. Brown calls this the ‘diversified funding trap’. Instead, go deep, not wide – focus on funders that align tightly with your mission and message.
Law #3: Brands That Chase All Channels Chase Away Funding
The ‘omnichannel myth’ is a budget and bandwidth killer. Brown’s method? For smaller nonprofits, Brown suggests starting lean and smart with the minimalist communication playbook. This includes a 10-slide pitch deck, a five-page website, a three-line elevator pitch, and a monthly email newsletter. From there, you grow intentionally. Brands that focus on the fundamentals find the funds.
To bring the three laws together, Brown suggests using a one-sentence marketing strategy. His formula: “Unlike [COMPETITORS], we are [THREE UNIQUES] and we reach [MAIN AUDIENCE] via [TWO CHANNELS] in order to [ONE GOAL].” This is not a public-facing message, but the structure helps you reach internal clarity.
Final takeaway
Kevin L. Brown reframes the nonprofit starvation cycle not as an inevitable fate, but as a solvable problem – you need to put your brand first, fundraising second. To get funding, be fundable and findable.
Want more?
To dive deeper into Kevin L. Brown’s work, you can:
- watch the Knowledge Series recording.
- follow Kevin L. Brown on LinkedIn for daily insights.
- order your copy of Fundable & Findable, the best-selling book by Kevin L. Brown, which outlines 20 laws to be fundable, be findable and get funding.
This article was written by Matthew Higgins, State Manager Development and Partnerships, Queensland.
Creative Australia’s State Managers Development and Partnerships provide a free coaching and advice service aimed at building the fundraising capacity of individuals and organisations within the cultural and creative industries. Make an appointment with your local State Manager Development and Partnerships to discuss how you might apply the key learnings and frameworks shared by Brown to your specific context.
References
1. Gregory A. G., Howard D (2009). The nonprofit starvation cycle. Stanford Social Innovation Review, 7(4), 49–53; Lecy and Searing (2014). Anatomy of the Nonprofit Starvation Cycle: An Analysis of Falling Overhead Ratios in the Nonprofit Sector. Nonprofit and Voluntary Sector Quarterly, 44 (3).
2. Full interactive Charity Data Explorer from the Australian Charities Report 11th edition.