Hello friends,

Each Thursday, I break down a practical framework in four minutes—helping you reclaim time, cut through the noise, and navigate tough decisions. To the many new people joining this week: welcome! And if someone forwarded this to you, why not subscribe?

I’ve always been fairly risk-averse—probably too risk-averse to be a truly exceptional fundraiser or product manager. But in leadership, playing it too safe can be just as damaging as taking reckless risks.

When I was Director of the European Journalism Centre, I pushed myself to take more strategic risks. I wrote a build-in-public blog, even when some of my team were uneasy about that level of transparency. I changed our decades-old logo, knowing it would spark debate (understatement). I shut down a high-performing website to free up resources. I even turned down a major European Commission grant without alternative funding because it was unaligned with our new direction.

Not all of that worked (and the funding situation was not markedly better than it is now). But some of it did—multiple new funders later told me the blog (still online!) was why they contacted me in the first place.

At the time, I didn’t have a name for it, but I was mitigating my own risk-averse nature by running a Failure Budget—deliberately allocating resources for experiments that might not work. Today, I want to show you how to do the same: how to make failure a controlled expense instead of a paralysing disaster.

Let’s break it down.

💸 FAILURE BUDGET 💸

A Failure Budget is a deliberate allocation of money, time, or energy that you expect to “spend” on failed attempts before you reassess. It shifts failure from something to fear into something you plan for—so when it happens, it doesn’t throw you off course.

When to use it.

• Resources are tight, but innovation is necessary. When funding is unpredictable, it’s tempting to only invest in “proven” strategies. A Failure Budget ensures you don’t default to what’s safe but stagnant.

• Your board is risk-averse. If every idea is met with “but what if it doesn’t work?” - a Failure Budget builds structured permission to try, fail, and learn.

• You need to convince funders or family. Experimentation can look irresponsible unless it’s intentional. A Failure Budget signals to those that matter that it’s strategic.

• Your organisation is growing or pivoting. What worked before won’t necessarily work now. A Failure Budget gives you a margin for testing without jeopardising your core work.

• You’re stuck in analysis paralysis. You’ve been circling the same idea for months, unsure whether to commit. A Failure Budget forces you to test instead of overthink.

Why it works.

A Failure Budget works because it counteracts loss aversion and builds psychological safety into decision-making. People instinctively avoid risks because losses feel more painful than equivalent gains, leading to hesitation and stagnation. By treating failure as a planned expense rather than an unexpected loss, a Failure Budget removes the emotional sting of setbacks.

At the same time, it fosters a culture of psychological safety, where teams feel free to take smart risks without fear of blame. The result? More experimentation, faster learning, and a team that innovates instead of playing it safe.

How to use it.

Depending on your work and resources, your Failure Budget can take different forms:

1. Financial Failure Budget

Example: Allocate £5,000 per year for experimental fundraising methods (a new donor event, digital ads, a crowdfunding campaign).

For: Fundraisers, nonprofit leaders, small business owners testing revenue models.

2. Time-Based Failure Budget

Example: Set aside 10 hours per month for testing new donor engagement tactics or outreach strategies.

For: Nonprofit teams with limited staff, solopreneurs juggling multiple roles.

3. Emotional Failure Budget

Example: Commit to sending 15 funding proposals per quarter—knowing that 10 might get rejected.

For: Fundraisers, grant writers, social impact leaders seeking partnerships.

4. Opportunity Failure Budget

Example: Agree to three new collaborations per year, even if they feel risky.

For: Organisations stuck in old models, entrepreneurs afraid to test new ideas.

Take it to the next level.

Firstly, decide what to “spend.”

→ Are you budgeting money, time, emotional resilience, or risk-taking?
→ Example: £2,000 per quarter, 20 hours per month, or 5 high-risk grant proposals per year.

Then track failures like a currency.

→ Keep a Failure Ledger (spreadsheet, journal, or shared document) to track failures like financial expenses.
→ Example: If your budget is 10 failed grant applications per quarter, log each one like a debit.

Finally, reassess regularly.

→ Are you learning from failures, or just throwing resources at bad ideas?
→ Adjust as needed—failure budgets should evolve.

Want to make this even more effective? Try these:

• The “small bets” rule: start with low-cost failures before scaling up.

• Failure reflection time: spend 30 minutes per month analysing why failures happened.

• The reverse budget: instead of capping failures, set a minimum number required (e.g., “We must test five new fundraising methods this year”).

🔮 FUTUREPROOFING 🔮

A Failure Budget is a powerful tool, but it’s not without risks—especially for organisations with unstable finances or deep commitments to communities built on trust. When failure impacts funding, relationships, or team morale, the cost can be more than just a learning opportunity. That’s why failing thoughtfully matters.

If finances are tight, only allocate resources you can afford to lose and prioritise experiments with secondary benefits—even if a fundraising test flops, does it build stronger donor relationships? When working with marginalised communities, involve them early, frame new initiatives as collaborations, and be transparent about risks. And within your team, reinforce psychological safety by running blameless post-mortems—failures should be analysed, not weaponised.

Not every organisation has the same margin for error, and failure is a privilege not everyone can afford equally. A Failure Budget should push you to take smart risks, not reckless ones. Set clear boundaries, communicate openly, and make sure every failure—big or small—moves you forward.

🪁 PARALLEL PLAY 🪁

Forget about the markets and escape with these:

• On a trail run this weekend, I saw a Tawny Owl in broad daylight. This time of year is always a good one for checking out Cornell's Nest Cams.

• We finished Season 3 of The Bear last week. It's flawed, but undeniably beautiful. This is why The Bear hits so hard.

• This look inside Casa do Povo, a rare (and brave) public forum for creativity, is delightful. Imho, the local newsrooms of the future looks like this.

🌊 WAVE GOODBYE 🌊

Thanks for being here.

My YouTube video this week focuses on the truth about being multi-passionate. It seems to have hit harder than anything else I've recorded, so I think I'll consider more on this topic in the future.

You often find multipotentialites launching startups, leading organisations through change, or jumping into multiple, complex social or business challenges where no clear roadmap exists. They don’t just survive uncertainty—they seek it out.

I guess I'm one of those people, and maybe you are too.

We often perceive a lack of validation, feel overwhelmed, and experience extreme imposter syndrome. You never feel like you’re enough.

If that's you, know you're not alone. We are many!

Take care,

Adam

p.s. First time here? Like what you see? Subscribe for more.
p.p.s. Want to read that build-in-public blog? I'm fighting against the cringe, but here's one post that doesn't make me die inside at least.