Well here we are. Writing about last year’s deficit feels a bit like sitting across from a friend at a cafe when they know you are going to spill the tea and you’re not quite ready to.
So let’s get into it. I started this off attempting to write a piece about our recent partner convenings (which we restarted after an almost 6 year hiatus) and the why behind how we run our fiscal sponsorship program. And don’t worry nonprofit nerds, you’ll get that piece in due time. But as I spoke with Kristine, our Director of Operations Support, and Deserea, our Director of Finance, it became clear pretty quickly that a deep dive into the intricacies of fiscal sponsorship fee structures isn’t what is needed right now.
The State of Nonprofits
We’re all struggling and it’s hard not to feel alone in this field right now.
RVC is not the only nonprofit that faced significant layoffs in the last year. And we won’t be the last. According to the Chronicle of Philanthropy’s continued tracking, it’s estimated that at least 24,000 full time jobs have been cut from the nonprofit sector since Trump took office. Now, RVC’s financial situation was not solely related to the new administration and cuts to nonprofit funding. Increasing apathy from donors – especially white folks – over the past 5 years has hurt BIPOC nonprofits, including us. According to the Lilly Family School of Philanthropy’s June 2025 Communities of Color Index Report, support from white donors towards BIPOC organizations spiked in 2020 in the wake of George Floyd’s murder and the mass uprising but then feel right back down below 3% by 2021.
We invested in community without clarity
We also had internal reasons as to why our finances landed where they did. The reality is, in a rapidly changing landscape, we didn’t respond with the nimbleness and flexibility we are known for. This is in part because we lacked a clear understanding of our day to day cash flow and were unable to project our revenue into the future.
The other reason is that we intentionally spent money as we received it by investing deeply into our community and supporting folks through the challenges they shared with us. We grew fast because folks told us they needed support in capacity building, staffing, and financial support. We also faced the reality that living in late stage capitalism means that to do things well, you need A LOT of money, capital, and resources. Which funders and donors rarely give in perpetuity. (Even if they should.)
What we’re asking ourselves right now
Now, coming out the other side of our reduction in force and financial crisis, we are reflecting on some major questions that we’ll continue to ask ourselves during the months ahead.
- In moments of crisis, what do we need in place to make good, values-aligned decisions?
- How do you approach making major cuts during a really difficult time for individuals as they navigate increasing state violence, economic hardships, and the potential loss of their livelihood?
- What philosphy do we want to have around saving for a rainy day versus immediately investing funds in community?
- What does it mean to be a safety net and support for a network of organizations, many of which are navigating their own crises? At what point does the safety net break?
I want to hear your thoughts on these questions! Because like I said at the beginning of this piece, no one person has it all figured out.
We’re going to spend time exploring these over the next several months, especially within the context of our role as a fiscal sponsor and an organization that faced its own downsizing. And we want to help facilitate collective learning and collaboration, so I would love to partner with anyone who is interested in exploring these questions further.
Send me your thoughts on these questions via email or click here to schedule a time to chat with me.
P.S. Thanks so much to Kristine Maramot, our Director of Operations Support, and Deserea Romero, our Director of Finance, who sat with me on a Google Meets call for up to 2 hours talking through this topic and all the valuable insights they provided to make this piece come alive.
