By: Lazaro Maisler

Over 20 years ago, during my first ABC Fundraising training for AEDROS (the Association of Fundraising Executives in Argentina), one of the first things I told participants was: ‘You need to diversify your income streams. Do not put all your eggs in one basket.’

Back then, I was speaking from theory and the experience of colleagues who had been in the sector for years. Today, after chatting with several of them across the region, that lesson is ringing in my ears louder than ever. Many colleagues are worried because key funding sources are drying up, leaving them in a state of uncertainty.

Diversification isn’t just a good practice—it is a strategic need. When one income stream closes, organisations that have bet on a single income soource are left vulnerable. On the other hand, those who’ve diversified can keep moving forward, adapt, and find new opportunities.

A few years ago, I worked with an organisation that relied almost entirely on government funding. When those funds were drastically cut, the organisation was on the brink of collapse. That is when it was decided to implement a diversification strategy. We started exploring new income sources, like individual donations, partnerships with local businesses, and fundraising events. The process was not easy, but the results were transformative. Today, that organisation hasn’t just regained financial stability—it is also expanded its impact and strengthened its mission.

This is not an isolated case. In my experience, both personally and through my work at in2action, I have seen how diversification can be the difference between survival and collapse for an organisation. But why is it so crucial?

• • First, it reduces risk. Not relying on a single source protects organisations from political, economic, or social changes.
  • Second, it fosters innovation. Seeking new income streams drives creativity and adaptability.
  • And third, it strengthens autonomy. Diversified organisations have more control over their future.

In an increasingly unpredictable world, diversification is not an option—it is a strategic must. I said it over a decade ago, I stand by it today, and I will keep saying it: you can not bet on a single source.

These past few weeks, as I was invited to deliver another ABC training and spoke with colleagues across Latin America, I realised this lesson is as relevant as ever. The concerns we share are not new, but the current context makes them more urgent than ever.