Diversification Through Shared Infrastructure – A Smart Path to Impact (RN18)
A Guide for Non-profit Board Members and Staff Leaders
In the ever-shifting landscape of community needs and nonprofit funding, diversification isn’t just a financial strategy—it’s an organizational imperative. More and more, mission-driven organizations are recognizing that expanding the range of services they offer—especially those that complement each other—is a powerful way to deepen impact, increase sustainability, and build lasting relationships with the communities they serve.
But successful diversification doesn’t happen in a vacuum. It requires a strong operational backbone—solid systems in finance, HR, and development—and a strategic mindset that sees opportunities to meet adjacent or wrap-around needs with existing capacity.
This post continues the conversation started in RN12: It’s Time to Look Around, where we explored partnership and collaboration as tools for nonprofit effectiveness. Here, we focus on how diversification, built on a foundation of internal strength, can amplify mission delivery.
Just-A-Start: A Model for Integrated Support
One compelling example is Just A Start, a Cambridge, Massachusetts–based organization that exemplifies the power of diversification. Rather than focusing on a single programmatic area, Just A Start has developed an interwoven portfolio of services that guide individuals and families toward economic stability:
Career Training in Biomedical and IT Fields
YouthBuild vocational programs
Financial education and coaching for economic mobility
Affordable rental housing and homeownership programs
Emergency housing assistance and stabilization services
What sets Just A Start apart is not just the breadth of its programs but the way these offerings reinforce one another. Housing stability enables success in workforce programs. Career advancement increases financial resilience. Financial education supports lasting housing solutions. By intentionally interconnecting these areas, the organization delivers a more comprehensive and effective response to the needs of low- to moderate-income residents.
Why This Approach Works
Diversification can be messy if not done strategically. But when built on a solid operational infrastructure, it creates several key advantages:
1. Leverage a Resilient Shared Infrastructure
Once established, a centralized finance, HR, and fundraising backbone allows new programs to launch faster and run more efficiently. Instead of recreating administrative systems for every initiative, organizations can expand with agility.
2. Attract Broader Funding
Funders increasingly value cross-cutting solutions that reflect the complexity of the problems they aim to solve. Organizations with diversified but aligned programs are better positioned to attract diverse revenue streams—from workforce development grants to housing stabilization funds. Moreover, a diversified mix of revenue streams, for instance fee-for-service, state funding, foundation grants and individual giving, reduces exposure to shifts in funder priorities.
3. Market Synergies
A broader range of programs often means broader community reach. This increases visibility and provides natural pathways for individuals to access multiple services. Shared branding, storytelling, and data systems strengthen impact reporting and public perception.
4. Built-in Partnerships
Diversification creates opportunities for internal and external partnerships. Teams that deliver different services can collaborate on program design and referral pathways. The organization becomes a trusted hub, and external partners see the value in plugging into a more comprehensive ecosystem.
5. Growth Opportunities for Staff
Attracting and retaining staff is a constant challenge. Diversification can provide cross-training and growth opportunities that can keep staff engaged, fill gaps caused by turnover and respond to seasonality in programs.
Is Diversification Right for You?
If your nonprofit is considering diversification, here are a few questions to explore:
Do you already serve a population with multiple needs?
If so, are there services they routinely need that fall outside your current scope and are not being met by other organizations?Do you have core infrastructure (finance, HR, compliance) that can support more programs?
First and foremost, your operations must be solid, sustainable and, to the degree possible, resilient such that additional programs will not tax your systems.
Are there opportunities to add programs that naturally complement each other and are aligned to your mission?
For example, a food security nonprofit might explore health education or employment services.Could you grow more impactfully through strategic partnerships or acquisitions?
If there are other organizations already providing complementary services, often the fastest path to diversification is through working together.
From Addition to Integration
The most effective diversification isn’t just additive—it’s integrative. It aligns with the mission, strengthens organizational identity, and maximizes the return on existing assets. Just A Start’s model reminds us that thoughtful expansion can do more than broaden reach—it can change lives more deeply.
Nonprofits that cultivate operational readiness and think creatively about adjacent needs can become anchors of support in their communities. In doing so, they not only stay relevant—they lead.
Next Up in This Series: We'll explore when mergers or acquisitions might make sense to consider, and how to make them work.
Is your non-profit experiencing challenges
Capitalizing on the pivotal opportunity that leadership transitions offer, Interim Executive Solutions (IES) strengthens nonprofits by placing and supporting experienced leaders who work inside organizations to provide confidence, reduce stress and take action that prepares the organization to thrive. Our core values are:
Inquisitiveness: uncovering and prioritizing organizational needs and capabilities
Inclusiveness: embracing the power of diverse perspectives, experiences and orientations
Transparency: gathering and sharing factual information to improve operations
Collective Action: building the capacity of team-members to sustainably achieve the mission
To learn more about interim leadership
Reach out to Interim Executive Solutions for a free consultation
Subscribe to Rethinking Nonprofits
About the author:
I lead Interim Executive Solutions, a national organization exclusively dedicated to placing and supporting professional interim leaders for nonprofits. We get nonprofits to what's next. https://www.linkedin.com/in/dcharris/