Why every nonprofit leader needs a failure budget.

The biggest risk in nonprofit leadership? Playing it too safe.

I learned that the hard way.

At first, I believed caution was smart. That risk was irresponsible. Then I created something I now call a Failure Budget and everything changed.

Here’s the idea:

➊ Set aside a portion of your time, money, or team energy.
➋ Use it for experiments—things that might work, or might not.
➌ Accept that some of it will fail. That’s the point.

You budget for travel. You budget for training.

Why not budget for learning through failure?

This isn’t about being reckless. It’s about making space for smart risks without letting fear drive your roadmap.

After introducing a Failure Budget, I see my clients land new funders, make better strategic calls, and build team culture that’s open, creative, and resilient.

What might you try if failure was already paid for?

(Found this useful? Check out the Failure Budget edition of my newsletter, which dives into the mindset shift and how to apply it even if resources are tight).