Non-profit organizations are vital in every community as they provide necessary services to individuals who require assistance. These organizations come from various sectors like humanitarian, religious, healthcare, social service, education, or environment. However, despite their efforts to succeed, non-profit organizations face multiple challenges including the struggle to recruit skilled personnel and meet unrealistic expectations. Additionally, they often lack adequate facilities and suffer from a shortage of volunteers and financial resources.
Non-profit organizations, like for-profit businesses, can experience significant setbacks in achieving organizational success. Although the specific definition of organizational success may differ among organizations, it generally encompasses the attainment of organizational objectives. While it is beneficial to establish goals in the non-profit sector, it is crucial to recognize and address unrealistic goals and expectations. Unrealistic goals can adversely affect the success of a non-profit organization (NPO), as well as the relationship between its primary stakeholders: the funders and grantees.
These unattainable objectives primarily involve costs and are driven by non-profits “spending too little on overhead and underreporting their expenditures on tax forms and in fundraising materials.” (Gregory & Howard, 2009, p. 50) Consequently, funders are compelled to “expect grantees to accomplish more with limited resources,” creating pressure for funders to adhere to unrealistic expectations. Changing unrealistic expectations starts with funders, as they hold more influence and control in the funder/grantee relationship.
Changing expectations will result in a decrease in underreporting and inaccurate figures. Additionally, funders should clearly communicate their program goals to grantees and place more emphasis on outcomes instead of costs (Gregory & Howard, p. 52). Staffing is a crucial aspect of operating any business, and non-profit managers are currently facing difficulties in filling job positions. The pressures of fundraising within the non-profit sector have impacted recruitment efforts.
According to a survey conducted by the Nonprofit Listening Post, 87 percent of nonprofits are finding it somewhat challenging to recruit qualified applicants due to decreasing pay levels and limited opportunities for job advancement. Another report from DAWN Ontario – Disabled Women’s Network Ontario states that a large percentage of nonprofit employees are dissatisfied with their pay and benefits, as nonprofits are facing increased responsibilities, reduced funding, and less stable funding sources. This has resulted in lower pay, more reliance on temporary employment, and less job security. The lack of funding for recruiting and retaining positions poses difficulties for organizations in achieving their goals and objectives. Furthermore, non-profits are also struggling to recruit diverse professionals, which is another issue affecting NPOs.
In the non-profit sector, diversified staffing is advantageous as it allows for the introduction of new ideas and perspectives, according to Sandra Larson. Diversity goes beyond racial and ethnic differences; it also includes a variety of values and viewpoints. This is beneficial for non-profits because it ensures that multiple perspectives are considered, leading to thorough analysis of situations and the development of innovative ideas (Larson, n.d., ¶ 25). Although recruiting may present difficulties in the non-profit industry, it is just one part of the larger need for these organizations to improve their organizational infrastructure and overall leadership.
When it comes to recruitment in the non-profit world, funding is a major factor. However, organizations should also consider internal factors such as infrastructure and agency leadership. According to Huntoon (2007), board members should ask important questions about strategy, mission, and accountability and recognize their organizations’ roles in their communities. Effective board members and executive teams are crucial for improving organizational performance in non-profit organizations (Huntoon).
In the current economy, funding is often seen as the biggest challenge for non-profit organizations. According to Bender (2009), leaders have had to make difficult decisions like job cuts and reducing events due to a decrease in annual donations caused by the economic downturn. The economy has significantly impacted non-profit charities and organizations. Nonprofits are facing declining revenues while experiencing an increasing demand for assistance according to the Nonprofit Economics Vitality Center (2009).
Nonprofits are increasingly experiencing reductions in funding, with some receiving less support than the previous year or even being denied funding altogether (Bender, 2009, p. 20). This trend is not only affecting nonprofits but also impacting families, who are facing the consequences of the ongoing recession. As a result, families are forced to tighten their budgets and eliminate expenses, including charitable donations. In a recent interview with Doug Jansson, president of the Greater Milwaukee Foundation, Tom Held of the Milwaukee Journal Sentinel discussed these challenges.
Jansson states that the economic decline has resulted in a significant decrease in donors’ trust, posing challenges in persuading people to donate money. The Salvation Army center in Atlanta, an established non-profit organization, is also affected by the economic downturn and is unable to open its homeless shelter this year due to insufficient funds. Maj. James Seiler, the area commander of the Atlanta center, acknowledges that financial limitations prevent them from supporting staff and programs. Both non-profit organizations and donors are impacted by the economy; however, it is essential to remain focused on their mission. Despite the current bleak situation, leaders maintain hope and confidence for improvement next year. Fundraising plays a vital role in generating revenue for non-profits.
Fundraising is vital and difficult for Non-Profit Organizations (NPOs) as it ultimately determines their success or failure. The process involves acquiring funds through grants and donations, with grants originating from the government or corporations, while individuals or groups contribute donations. NPOs utilize different methods such as bake sales, rummage sales, and auctions to collect donations. Additionally, fundraising can be categorized into three sections: overseeing fundraising staff, involving non-fundraising staff in fundraising efforts, and collaborating with other organizations for fundraising objectives.
Specialized professionals in fundraising primarily prioritize the acquisition of donations rather than the implementation of programs. These individuals, referred to as fundraising staffers, are typically employed by the majority of nonprofit organizations. It is understandable that organizations capable of investing in such professionals have embraced the employment of fundraising staff. (source: “Contributions for Nonprofit Organizations”, 2004, p. 1)
Non-fundraising staff and volunteers are significant contributors to the success of nonprofit organizations. While they may not be the primary source of fundraising dollars, their involvement is noteworthy. They, along with non-fundraising staff, play a crucial role in fundraising for many nonprofits.
“Contributions for Nonprofit Organizations” (2004, p. 2) explains that NPOs benefit from partnering with other organizations for fundraising purposes. These partnerships can come in two forms: professional fundraising firms contracted by nonprofits to raise funds on their behalf, and community organizations or federations that take on fundraising responsibilities for NPOs. Both types of partners are essential in the fundraising process.
In addition to fundraising efforts, non-profit organizations also provide vital services such as healthcare, education, and social services to communities. It is imperative for these non-profits to continue their mission of serving those in need.
Non-profit organizations often encounter challenging times, setbacks, and failures. However, these situations present opportunities for them to reevaluate their objectives in order to provide improved services to the public. Various obstacles arise during this process including cost reduction, technology utilization, efficiency enhancement, financial and investment management, employee attraction and retention, meeting financial reporting obligations, and increasing revenue while minimizing tax responsibilities. Addressing these concerns is crucial for non-profits to operate effectively and achieve success ( , 1997, ¶ 1).
