Michael Levenston, Principal, NFP Solutions at TIP Group, details how NFPs can achieve financial sustainability.

In the not-for-profit sector, mission is everything; however, mission can only be sustained if the organisation is financially strong. In the past year, we have spoken with dozens of NFP leaders who are facing the same challenges:

• Increased demand for services
• More competition for funding
• Donor fatigue in a world where economic uncertainty is the new norm

Against this backdrop, the question many boards are asking is simple: How do we make sure our organisation is still here, and thriving, in ten or twenty years?

As the platinum sponsor of the Third Sector Leaders Forum for the second consecutive year, we believe events like this offer more than just networking opportunities. They are rare moments when senior executives can step back from day-to-day pressures, compare notes and share solutions that work in the real world. It is why we continue to invest in the sector and in these conversations, because resilience is not built in isolation.

The changing landscape for NFPs

The funding environment has shifted dramatically in recent years. Traditional sources of income, such as government grants and large-scale philanthropy, are under pressure. Donors are more selective, often tying contributions to measurable outcomes and shorter reporting cycles.

At the same time, operational costs are rising, from staffing to compliance, while communities rely more heavily on NFP services during times of economic strain. The result is a widening gap between mission ambitions and the resources available to achieve them.

This environment demands a new approach that blends strong governance, financial literacy and proactive investment strategies.

From surviving to thriving

We have seen first-hand that financial sustainability is not an abstract ideal; it is the foundation for mission continuity. Organisations with a long-term financial strategy are better positioned to weather shocks, seize opportunities and invest in innovation.

One of the most powerful tools at an NFP’s disposal is the creation, or growth, of an endowment fund. By setting aside capital and investing it prudently, NFPs can generate a steady stream of income, independent of fundraising cycles. This does not replace donor or grant income; it complements it, creating a buffer that allows leaders to plan confidently for the future.

For boards and executives, the challenge is often knowing where to start. That is where governance comes in.

Why governance and financial literacy matter

We have worked with organisations that have exceptional missions but limited investment governance. In many cases, boards have not received specialist training in managing significant capital or outsourced investment decisions without retaining oversight.

Building financial literacy at the board level changes everything. Directors become more confident in assessing risk, evaluating investment opportunities and aligning financial strategy with mission priorities. It also leads to healthier, more informed conversations with advisers and fund managers.

The key is a structured approach:

1. Assess the current financial position and future funding needs.
2. Educate board members and executives on investment principles and sector-specific considerations.
3. Strategise to set a clear investment policy aligned to the mission.
4. Implement using products and structures appropriate for NFPs.
5. Review regularly to ensure performance and risk remain in balance.

Tailored solutions for NFPs

At TIP Group’s NFP Solutions team, we specialise in creating investment strategies that align with an organisation’s mission, values and governance framework. Our flagship option, the Corinthian Balanced Fund, is specifically designed for charities and not-for-profits, investing in a diversified portfolio of mostly ASX-listed equities and secured commercial real estate bonds.

Because we work exclusively with the NFP sector, we understand the unique regulatory requirements, ethical considerations and cash-flow needs that shape investment decisions. The result is a strategy that delivers sustainable returns without compromising organisational values.

Real-world impact

Last year, we assisted an NFP with an $8 million endowment that had been sitting in low-yield term deposits. By implementing a balanced investment strategy aligned with their risk profile, they increased annual income by over 20% while maintaining capital stability. This additional income now funds new community programs without the constant need for fundraising.

Stories like this illustrate the potential for transformation when governance, investment expertise and mission alignment come together.

Join the conversation

As platinum sponsor, we are here not just to put our logo on the program; we are here to be part of the conversation. We will be hosting a session during the conference focused on “Practical Steps to Financial Sustainability for NFPs”, sharing more detailed frameworks and real-world case studies.

We invite you to attend, bring your questions and explore how your organisation can build a financial foundation that lasts.

A closing thought

The most successful NFPs are those that prepare for tomorrow while delivering today. Financial sustainability is not about hoarding resources; it is about ensuring the mission continues, regardless of the economic climate.

We look forward to meeting you at the conference, hearing your challenges, and working together to create solutions that make your organisation stronger, more resilient and ready for the future.

Michael Levenston

Principal, NFP Solutions at TIP Group |  + postsBio

Michael leads the strategy and execution of TIP Group’s NFP Solutions. With over 20 years of experience in finance and strategy, he has worked in institutional debt capital markets at Citibank, Royal Bank of Canada and Credit Suisse, treasury management, financial advisory, and data & technology. He also founded two startups, one each in the edtech and fintech sectors.

Michael has served on multiple NFP boards over several years, with a mission to support organisations to maximise impact for their cause. He continues to volunteer in the community across several charities and as a Justice of the Peace.

Michael holds a Bachelor of Commerce with Honours from the University of Sydney.

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