Tip #7 – Build Financial Resilience, Not Just Revenue

Dear Fellow and Aspiring Social Entrepreneurs,

One of the most frequent questions I receive, whether I’m coaching young people starting out or professionals seeking more purpose-driven work, is this:

“What do I need to know to build a social enterprise?”
“Where do I begin?”
“How did you do it?”

This article is part of a series where I share insights from my own journey as a founder, CEO, and lifelong third sector professional.

Let’s talk about money

In this article, I want to unpack why financial resilience is essential for third sector organisations, and why we need to talk about money without shame or fear. It’s a lesson I’ve been learning (and re-learning) throughout my years founding and leading both Micro Rainbow and the Micro Rainbow International Foundation.

It’s time to remove the stigma. In a sector that champions values and integrity, we sometimes treat money like a dirty word. But every organisation, even the most mission-driven, needs financial resources to thrive and serve.

Money Is Not a Dirty Word

Having worked across the third sector for my entire career, I know how deeply uncomfortable money-talk can be. Early in my career, particularly 20 years ago, I was surrounded by a culture that was anti-corporate and anti-wealth. The assumption was that volunteering was the “purest” form of service. Talking about profit, or financial growth, often felt like a betrayal of our values.

But as I’ve grown in this work, I’ve come to see this mindset as limiting, even harmful.

We need to find a balance between rejecting capitalism entirely and uncritically embracing profit-at-all-costs models. In my opinion, we need to be able to say: money has a role in change-making.

What I’ve Learned. Obstacles and Tensions

1. Scarcity vs Capitalism

When I suggested building reserves for financial security, I was sometimes asked: “Are we becoming a capitalist organisation?”
That question made me feel like the enemy within. But I now see that resilience is not incompatible with our values, in fact, it reinforces them.

2. Reserves vs Financial Vulnerability

Funders sometimes challenged us: “Why do you need more money if you have reserves?”
This creates a culture of fragility where being under-resourced is the price for receiving support. We must challenge this.

3. Sustainability vs Solidarity

I’ve often been asked to provide services “in solidarity,” even when budgets are tight or non-existent.
For years, I said yes, at the cost of our own sustainability. But true solidarity includes sustainability. Now we ask: What’s possible? What can we do together? Can we fund this partnership collaboratively?

4. The “Naughty” Corporates

Corporates with multi-million-pound turnovers would ask us to speak at Pride events for free.
I used to say yes, thinking of it as visibility. Now I ask: What’s your plan for long-term engagement? How else can you support us?

These shifts weren’t easy, but they were necessary. Now I speak more openly about money. I ask for what our team deserves. I protect our mission, and the people we serve, by demanding fair value for our time, labour, and expertise.

Because ultimately: money pays salaries, supports livelihoods, funds care, creates dignity and fuels our mission.

The Quest for Financial Resilience

Financial resilience is what allows organisations to withstand crisis and respond to emerging needs. It gives us flexibility, freedom, and security in a volatile, uncertain, complex and ambiguous (VUCA) world.

Micro Rainbow was built with this resilience in mind. That’s why, when Russia invaded Ukraine or the Taliban returned to Kabul, we had the financial stability to support LGBTQI refugees without delay. That’s why, when donors pulled out or political rhetoric turned hostile, we kept going, without cutting services or staff.

When we started 12 years ago, our income was 100% from grants. Today, it’s 60% grants and 40% earned income. By 2030, we aim to be 100% financially sustainable. Why? Because movements cannot survive without infrastructure, and infrastructure needs funding.

Final Reflections

If I could give one piece of advice to fellow social entrepreneurs, it would be this:

Talk about money. Learn about money. Get comfortable with it.
Money is not the enemy, silence and stigma are.

We can no longer afford to treat money as something separate from our missions. In a VUCA world, we need financial resilience to survive and thrive: for our people, for our planet, and for our shared future.

I hope this article offers a prompt for reflection. Let’s talk more about what it takes to build organisations that are sustainable, mission-aligned, and ready for the future.

With solidarity and hope,
Sebastian

PS. If you enjoyed this blog, see also Tip #6 – Generate Income While Creating Impact. For more tips, see the Build a Social Enterprise Blog

@sebastianrocca @buildasocialenterprise