How To Weather Major Funding Losses

In this episode of Change Loves Company, Dominique sits down with fundraising veteran Sean Triner to explore how charities can survive—and even thrive—when funding suddenly disappears. From lost grants to dominant donors, Sean shares real-life strategies for building resilient organisations, avoiding panic cuts, and creating long-term donor safety nets. With stories ranging from mental health charities in the UK to innovative campaigns across Australasia, Sean breaks down why bold action, smart policies, and a little data nerding can make all the difference. Expect insight, humour, and a masterclass in fundraising resilience.

Transcript

Dominique: Welcome to the Change Loves Company podcast, where I sit down with creatives, fundraisers, social entrepreneurs, artists, and activists—all with one thing in common. They're changing the world for the better through their work.

I'd like to begin by acknowledging the traditional owners of the land I'm recording on today, the Gadigal people of the Ora nation, and pay my respects to elders past, present, and emerging. Always was, always will be.

I'm Dominique Antarctica and I'm delighted to welcome Sean Triner to the studio once again. Sean co-founded Parado Fundraising and helped raise over $1 billion for charities across Australasia. He's guided organizations through lost grants, sudden donor exits, and major downturns—and he knows what works.

Now, through Oceanic, he trains fundraisers worldwide to assess income risk, diversify revenue, and prepare before a funding crisis hits. So what happens when your biggest fundraiser vanishes seemingly overnight? Sean has helped nonprofits survive that nightmare. He's on a mission to make sure you don't wait until it's too late. He equips teams to spot danger signs, strengthen donor programs, and turn individual giving into a long-term safety net. His tools, like the Supporter Connection Survey, have helped rebuild pipelines after major shocks—but more importantly, they've helped organizations avoid those shocks entirely.

Sean joined me in the studio to talk about how to deal with funding cuts and major crises in charities.

Sean: Hello, thanks for having me.

Dominique: Let's dive in. How do charities typically cope when they suddenly lose a significant source of funding?

Sean: In some ways, it's obvious. Often, about half the time, large funding losses come from government or institutional sources. So theoretically, you should see it coming. But as we saw with US Aid, sometimes you can’t. In other countries, funding from government is only as safe as policy at the time. That unpredictability can actually be freeing.

I used to work at Mind, a UK mental health organization. We got significant government funding, but at one point, the British government had a push—around the time the movie Minority Report came out—to preemptively arrest people with mental health problems in case they committed crimes. We opposed this, as a mental health organization, and risked a lot of government funding. We lost some. A change of government eventually restored it.

Sean: Those situations are difficult, but they allow you to do your job independently. Sometimes, you need to be independent of government money so you can speak honestly about problems. The fallout often teaches organizations to diversify their funding portfolio. Ideally, you already should have, but sudden losses make it painfully clear.

Sean: Another positive outcome—if public fundraising is a big revenue source, losing a chunk of funding often highlights mid-major donors who are willing to step up. They become long-term supporters. But generally, losing huge sums is never inherently good. You should have planned ahead.

Sean: Cuts are brutal. For example, an organisation expected government funds that didn’t materialize. They cut all costs by 15%, including fundraising, which reduced revenue by 18%. Staff morale dropped, people left, and recovery took years. Even a 10% funding cut can translate into a 20–25% drop in future revenue.

Sean: The smarter approach? Instead of cutting evenly, you might cut some areas more aggressively while investing in fundraising. It’s about survival, not optics.

Sean: Communication is critical. Charities often worry about telling donors about funding crises. Transparency works. For instance, Starlight and Epilepsy Foundation letters explaining shortfalls and mitigation plans raised more than a full year's donations. Honest communication transforms crises into opportunities.

Sean: Policy is key. Every board should have a reserves policy—around 60–70% of annual revenue. A large, reliable monthly giving program allows a smaller reserve, but generally, you need that cushion.

Sean: Dominant donor policies are equally important. If a single donor contributes 10% of revenue, have a plan for when funding ends. Corporates are fickle too. They may redirect money to more visible causes, like disaster relief, instead of long-term programs.

Sean: Also, implement a donor acceptance policy. If a single gift exceeds 5% of total revenue, have a formal process. Sometimes, the cost to administer a grant outweighs its benefits—so it’s okay to decline it.

Sean: The good news is these policies are easier to implement today, and I can help charities get them in place quickly.

Sean: Outside of work, I’m addicted to American Friction, a podcast with British and American journalists doing amazing interviews. It’s my light relief from webinars, which I listen to for about an hour a day. I never speed them up—one of my Gen-X quirks.

Sean: Mostly, I just enjoy it. And thank you to the listeners—goodbye.

Dominique: Sean has never waited for permission. A lifelong fundraiser, data nerd, and deadly snake rescuer, he has helped over 100 charities in 20-plus countries innovate without losing their soul. He introduced benchmark fundraising in Australia, led campaigns like the Soy Dog Foundation’s fight against the Asian dog meat trade, and empowers fundraisers to test boldly, fail fast, and recover smarter.

Sean co-founded Potato Fundraising and Messianic, revolutionizing how charities use data storytelling. Through Potato alone, Sean helped charities raise over $1 million for good causes across Australasia.

Too many nonprofit leaders are still stuck in analysis paralysis, letting fear and policy roadblocks block progress. We sat down and talked about AI and how charities should use it not only to survive, but to thrive in the coming years.

Dominique: So Sean, how do organizations start to future-proof themselves against these sudden funding shocks?

Sean: It really comes down to planning and policies. First, get your reserves policy right. For most charities, you want around 60–70% of annual revenue in reserves. If you have a robust monthly giving program, you can get by with a smaller reserve, but it’s still about having a buffer.

Sean: Next, dominant donor policies are critical. If one donor is giving a significant proportion of your revenue, you need a plan for when that funding ends or is pulled out. It’s amazing how few organizations actually do that.

Sean: Another thing is donor acceptance policy. If someone offers a gift exceeding 5% of total revenue, there should be a formal process, approved by the board or finance committee. Sometimes grants or donations look good on paper but cost more to implement than they bring in. You have to be prepared to say no.

Dominique: That’s interesting—so it’s not just about having money, but about knowing the real cost of getting it.

Sean: Exactly. And don’t forget communication. Transparency with donors is huge. I’ve seen organizations run “financial crisis aversion campaigns” where they honestly explain challenges, outline a plan, and ask for support. The results can be extraordinary—sometimes raising more than a year’s worth of revenue in a single campaign.

Dominique: So honesty really pays off.

Sean: Always. Donors stick with you if they trust you. They understand that crises happen. Avoid putting yourself in a position where a crisis is necessary to raise funds, though. Proactive planning is key.

Dominique: You mentioned AI earlier. How do you see AI helping charities in this space?

Sean: AI is a game-changer. It allows organizations to analyse donor data, predict giving patterns, and identify risk areas before they become problems. It can also help segment donors more effectively, personalise communications, and optimise campaigns for maximum impact.

Sean: But it’s not a magic bullet. You still need good strategy, strong policies, and a culture that can act on insights. AI just gives you better information faster, and frees your team to focus on relationship-building and creative fundraising.

Dominique: So it’s really about combining technology with the human side of fundraising.

Sean: Absolutely. Fundraising is relational at its core. AI can support and guide decisions, but the connection between the organization and the donor—that trust and transparency—is what makes the difference in the long run.

Dominique: And it sounds like your approach is always about preparation, rather than reaction.

Sean: Yes, that’s the point. Plan before disaster hits. Build diversified income streams. Know the consequences of losing key donors. Have a plan for every eventuality. That’s how organizations survive—and even thrive—through funding shocks.

Dominique: Sean, thank you so much for sharing these insights. It’s clear that nonprofits can learn a lot from your approach—both in terms of strategy and mindset.

Sean: Thanks, Dominique. It’s been great to chat.

Dominique: And thank you to our listeners for tuning in to the Change Loves Company podcast. Remember, whether you’re a fundraiser, social entrepreneur, or just someone passionate about change, planning, transparency, and innovation are key to making your impact last.