What Financial Challenges Do Nonprofits Face?


What Financial Challenges Do Nonprofits Face?

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Financial struggles are a reality for many nonprofits, even those with excellent programs. Primarily dependent on highly restricted grant support that does not cover general operations, today’s nonprofits spend too much time trying to cobble together a patchwork of funding sources. They are subjected to complex and redundant paperwork in order to apply for and report on grants. And, last but not least, they plow most if not all of their grant monies into delivering services now, rather than investing in strengthening their organizations.

All of this contributes to hollowed-out nonprofit organizations with high rates of personnel turnover and executive burnout — not to mention an inability to grow stronger over time.