Let’s be honest. Every nonprofit has a beloved program that soaks up staff time, budget, and brainspace while quietly underperforming. You love it because it has a story. Your team loves it because they built it. Your board loves it because it has history. But love is not a strategy. When resources are tight, the bravest move is often to sunset a pet program so you can scale what works.
That is not failure. That is focus. And focus is how small and growing fundraisers serve more people.
Cutting a program is not the end of your story. It is the moment your mission gets the oxygen it needs.
Why smart nonprofits sunset programs
High-performing nonprofit teams don’t stumble into tough choices — they face them with clarity. Instead of clinging to programs because of tradition or sentiment, they step back and ask: Which activities truly advance our mission and sustain our finances?
One of the most effective tools for making these decisions is the Matrix Map.
This framework plots every program on two axes: mission impact and financial sustainability. Suddenly, what used to be a pile of scattered reports becomes a single picture your entire board can see and discuss.
Programs that land in the “high impact, high profitability” zone clearly warrant growth, while those that drain resources without much mission return become candidates for sunsetting.
But analysis only works if it’s complete. That means looking beyond direct expenses to the full cost of running your organization. The Nonprofit Finance Fund defines full cost as everything required for effectiveness: indirect costs, staff time, infrastructure, working capital, and reserves. When leaders weigh programs with full cost in mind, they make decisions that are not only more accurate but also more equitable and sustainable.
Of course, sunsetting a beloved program is never purely analytical. It is emotional. The healthiest decisions come when leaders bring transparency, honesty, and planning into the process. Acknowledging the emotions at play, naming them out loud, and communicating early with staff, participants, and partners helps reduce fear and builds trust through the transition.
The bottom line is simple: sunsetting isn’t panic, it’s stewardship. By courageously letting go of what no longer serves, you create space for what does. That choice strengthens both your mission and your financial health, ensuring your organization can serve with greater focus and less frenzy.
Carrie Grover talks about making hard decisions and cutting programming in this episode of The Focused Fundraiser.
A 4-step decision sprint to know what to cut
Nonprofits often hesitate to cut programs because the process feels overwhelming. The thought of consultants, endless board meetings, and heated debates can stall momentum before it even begins. But pruning is part of healthy growth, and it doesn’t have to drag on for months.
What leaders really need is a focused, time-boxed sprint. In just two to three weeks, your team can gain the clarity to decide which programs strengthen your mission and which ones quietly hold you back. Think of it as a strategy reset: fast, collaborative, and built on evidence rather than gut feelings.
This sprint works because it compresses analysis and decision-making into four practical steps. Each step builds on the last, moving your team from mapping the landscape to making hard calls, and finally to planning respectful exits where needed. By the end, you’ll have one clear picture of your portfolio, a shared understanding of costs and outcomes, and the confidence to act.
Here’s how to run it:
1) Map your portfolio on one page
List every program or business line, then quickly score each for mission fit and financial sustainability. Use the Matrix Map or a simple program strategy map. The picture will reveal your clear winners, your revenue contributors, your mission leaders that need subsidy, and your potential distractions that deserve a tough conversation. (Bridgespan guide).
2) Count full cost and cost per outcome
For each program, calculate fully loaded costs, then divide by a meaningful outcome. If one program consumes significant unrestricted dollars and produces weaker outcomes, it should not outrank a program that reliably moves the needle. Use a true program cost template so indirect costs are not ignored in the math.
3) Apply clear decision rules
Set criteria before you debate a single program. Bridgespan suggests practical screens such as covering fully loaded costs, relying on renewable funding, reasonable cost per outcome, and strong utilization. Score every program against the same rules so your final choices are fair and defensible.
4) Plan an ethical sunset, not a sudden stop
If a program is tagged to exit, make a plan for people and promises. Outline how you will communicate with participants, staff, funders, and partners. Share timelines and transitions. Offer referrals or warm handoffs when appropriate. Honesty and empathy build trust, even in hard moments.
Decision rules reduce drama. When everyone agrees on the criteria, the conversation shifts from opinions to stewardship.
Your sunsetting playbook: Communicate and transition with care
When you end a program, you’re protecting your mission. Say that plainly, and back it with a plan.
What to say and do, step by step:
- Participants and clients. Explain what is changing, why, and when. Provide referrals, partners, or a warm handoff so people are not left without support. Keep channels open for questions.
- Staff. Share the decision early with the team delivering the work. Offer clarity on employment transitions, internal opportunities, or support resources. Honor the work with gratitude and stories of impact.
- Funders and donors. Brief key funders individually before a public announcement. Affirm how their past investments created outcomes, then share how the new focus will multiply impact. Most will appreciate your candor and discipline.
- Partners. Coordinate referrals and data handoffs. Protect privacy. Document outstanding commitments and close them on time.
- Public. Publish a short, transparent announcement. Emphasize the mission-first rationale and the stronger path ahead.
Transparency is not a press release. It is a series of respectful conversations that keep trust intact.
If you want a helpful script for funder conversations, borrow this shape: “Thank you for making X possible. We learned Y and achieved Z. As we refocus on the programs that drive the strongest outcomes per dollar, we are sunsetting X by [date]. We would value your partnership in scaling A and B.” Keep it short, human, and specific.
What to do with the capacity you free up
You did the hard thing. Now make it count.
Reinvest your time and dollars in the program that pulls the most weight. That often means putting staff hours into donor relationships, measurement, and delivery for a single flagship program. A zero-based plan can help you ruthlessly eliminate more and choose the five to eight fundraising plays that actually move revenue. See A Zero-Based Plan for Small Fundraising Teams.
Protect your calendar. Use the 15-Hour Focus Framework to block three donor-first hours a day, including stewardship, outreach, and follow up.
Keep your fundamentals tight. If you need a refresh on core plays that support your streamlined program mix, revisit Fundraising 101. Tight basics make every ask easier.
Track and share the gains. As dollars and outcomes improve in the remaining programs, tell that story. Donors love to see courageous focus turning into measurable results.
You do not need ten revenue lanes. You need three or four that compound. When your best program is funded by recurring donors, validated by local funders, and supported by a couple of strong partners, every win strengthens the next.
Quick checklist: From decision to done
- Map your full portfolio on a Matrix Map.
- Calculate full cost and cost per outcome.
- Agree on decision rules in advance.
- Choose which programs to sunset and set a 60 to 120 day transition.
- Communicate with care across stakeholders.
- Reinvest freed capacity in the program that delivers the most impact per dollar.
Wrap-up and next step
Ending a pet program takes courage. But you are not choosing less. You are choosing more impact with the team you have. That is how you ease your mental load, focus on what matters most, and serve more people this year.
Ready for more focus and less frenzy, with a CRM that keeps your donor work simple while you run a tighter program mix? Schedule a demo and start building meaningful donor relationships today.
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