CR #008: Ben Franklin's Best Advice Is Failing Nonprofits
Ben Franklin sailed to France chasing revenue, not pinching pennies - so why does his quote justify budget cuts?
Episode Summary
In this episode of Castle Roads, host E. Paul Bigham breaks down why nonprofit leaders default to cutting costs when revenue slows - and why the safer-feeling move is often the more dangerous one.
You'll learn the four ways to improve your bottom line (and why only one involves cuts), what loss aversion research reveals about why cutting feels safer, and how one founder grew for 20+ years by refusing to cut.
Question of the Day
When your revenue slows, what's your first instinct - cut costs or invest in growth? Has playing it safe ever cost your organization more than taking the risk would have?
Key Take-aways
- Only one of the four ways to grow your bottom line involves cutting costs - the other three take more courage
- "Leading through decrease" takes far less leadership than leading through change
- Loss aversion explains why cutting feels safe even when it's the more dangerous move
- One founder funded revenue proposals for 20+ years by refusing to let "it's not in the budget" end the conversation
- Zero risk almost always means zero gain - the parable of the Ten Talents, applied to fundraising
Timestamped Outline
00:00 - Opening: is it too risky to say Ben Franklin was wrong?
01:47 - "A penny saved is a penny earned" - what Ben actually said
03:04 - Cutting costs is easy, fast, and requires zero leadership
03:33 - Ben Franklin sailed to France to raise revenue, not cut costs
04:45 - The four approaches to improving the bottom line
05:56 - "You can't cheap your way to success" - Joe Polish
06:36 - The founder who always said "put it in the budget"
08:19 - The parable of the Ten Talents: zero risk, zero gain
09:18 - Kahneman and Tversky: why loss aversion makes cuts feel safe
10:47 - Closing: all roads lead to the same castle
Links & Resources
- Castle Roads Newsletter on LinkedIn - https://www.linkedin.com/newsletters/castle-roads-7450910196572504065/
- Bigham Agency - https://www.bighamagency.com
- Subscribe to Castle Roads on YouTube - https://www.youtube.com/channel/UCyKs2ExSOqB_zpArr1rRlJA?sub_confirmation=1
Connect & CTA
Subscribe and leave a review on Apple Podcasts.
Every week, Castle Roads explores how smart fundraisers build lasting donor relationships through proven strategies that converge old-world wisdom with new-world technology. Subscribe so you don't miss the next issue: www.linkedin.com/newsletters/castle-roads-7450910196572504065/
Credits
Host: E. Paul Bigham © 2026 Bigham Agency. All rights reserved.