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Reduce the Concentrations That Could Sink You.

Too much of your organization rides on one thing. One funder is a third of your budget. One contract keeps the lights on. One supplier or partner is the only one who does the thing you cannot do without.

It works, right up until that one thing goes away, and then a big piece of your organization goes with it. This guide finds where you are dangerously dependent, reduces it where you honestly can, and builds a real plan and cushion for the dependence you cannot reduce yet, so a single loss is a hard season instead of the end. It is not a command to drop your biggest funder or fire your best supplier; concentration is often how a small organization gets anything done at all. It is about not being destroyed if that relationship ends. It is not the work of building new revenue streams, which is its own larger effort in the funding work; this is the resilience side, the buffer and the plan that buy you time to replace what you lost. Use this if losing one funder, contract, supplier, or partner would put the mission in real danger.

Step 1

Map where you are dangerously dependent

You cannot reduce a concentration you have not measured. Work out what share of your total money comes from your single largest source, and from your top three combined. If your fundraising or grants work already produced these numbers, bring them here rather than redoing them. Then, beyond money, name the single suppliers, partners, or providers the work could not continue without, the one vendor, the one partner agency, the one landlord, ranked by how badly a loss would hurt.

Who: you, with finance staff for the money numbers. Produces: a clear map of exactly where too much rides on one source, ranked by how badly its loss would hurt. This is your Concentration Map.

Open the Concentration Map →
Step 2

Reduce what you can

Some dependence can be spread with deliberate effort, and every bit you spread is a shock you have made smaller. For each dangerous dependence, ask what would realistically reduce it: a second supplier, a broader base of funders, a backup partner, and be honest about what is achievable this year. Where the concentration is your money, the actual work of building broader revenue is your fundraising and funding work, so name it and send it there rather than solving it here. Set the target: what share from any single source would let you sleep.

Who: you, with the board and program leads whose relationships would broaden. Produces: a concrete plan to spread your most dangerous dependence, with the revenue-building work sent to where it belongs. This is the reduction section of your Concentration Reduction Plan.

Open the Concentration Reduction Plan →
Step 3

Buffer and plan for what you cannot reduce

Some dependence cannot be reduced soon, or at all, a sole government contract, the one funder in your field. For those, resilience is a cushion and a plan, not diversification. Work out roughly how long a cushion would need to carry you while you replaced the lost source, and write a rapid-response plan for the day the loss comes: the first calls, the costs you would cut, the services you would protect.

Who: you, with the Board, because setting a financial cushion is a board matter. Produces: a cushion sized and routed to be built, and a written plan for surviving the loss of a dependence you cannot yet reduce. This is the buffer-and-response section of your Concentration Reduction Plan.

If a concentration genuinely cannot be reduced

If you serve through one government contract that is most of your budget and there is no realistic alternative, do three things. Size and build a cushion that would carry you through a loss while you replace it, which is reserve work that lives in your financial management, and is sent there. Write a rapid-response plan for the day the loss comes. And have an honest conversation with your board about the risk you are carrying, so it is a shared, eyes-open decision rather than a silent exposure. This is a route to the work that fits, not a stop.

Open the Concentration Reduction Plan →

The honest edge

If a concentration is locked in by a contract you cannot exit, or by the simple reality that only one funder in the world supports your kind of work, that is worth an honest read from a nonprofit attorney on the contract side and an equally honest conversation with your board about whether the mission, as currently shaped, rests on a foundation you can live with. That is a real strategic question, and it may reach beyond resilience into whether the organization should change shape. Naming it is the guide being honest about its edge.

How you will know it is working

You can state, as a number, how much of your money rides on your single largest source. Every dependence you could reasonably spread, you have started to. And for every one you cannot, you have a cushion being built and a written plan for the day it is lost.

Where to go next

With your concentration addressed, most leaders move to Protect Against Disaster and Systems Failure if that is next on their plan, or to Write the Plan to Keep Serving Through a Shock to pull it together. The broader revenue base is the funding work, and the reserve is financial health and management. If you came in through a crisis and have steadied, the whole-organization check-up is the honest next look once your resilience plan is complete.

You can always go back to the overview or start over from the welcome page.