What do you think are some of the problems facing not-for-profit organizations today?

What do you think are some of the problems facing not-for-profit organizations today?

Today is a crucial time for nonprofits organisations. The nonprofits sector is in flux, beset by increasing responsibilities, higher public expectations but limited resources. Its phenomenal growth over the past thirty years has been accompanied by the creation of thousands of new one-issue groups, narrower agendas, and greater fragmentation. One can reasonably argue that, despite its enormous expansion, the nonprofits world has become weaker and less influential in shaping the direction, priorities, and policies of our society. It has been unable to address effectively and resolve many of the major problems (Masciere 1998, 1). There are four major problems facing by not-for-profit organisations today and it will be discussed in detailed below.

First and foremost, funding challenges appear to pose the greatest problem to nonprofits organisation. Countless nonprofits organizations are feeling the impact of federal reductions to their core funding streams at the same time foundation endowments and giving are down and many state and municipal governments are experiencing deficits that are reflected in reductions in spending on social programs. Other funding challenges include increasing competition among organizations for diminished funding, onerous financial accountability requirements, and difficulty obtaining corporate support (LeRoux 2009, 158).

Moreover, nonprofits organisations face accountability pressures. As a result of a few high profile cases, nonprofits are facing powerful accountability pressures to provide measurable proof that the services they provide have an impact on the communities and populations they target. Funders and the public want to know in detail if the funded organization is effective in doing what it sets out to do and if it is also efficient at what it does. Also, due to the recent economic crisis, business leaders are feeling the pressure for transparency and accountability in their nonprofits organizations (Lombardo 2005, 45-48).

Furthermore, although most nonprofits organisations identify human capital as their greatest strength, they also face significant human resources challenges. In recent years, there has been a decline in the number of volunteers. Many organisations are finding it particularly difficult to recruit and retain volunteers who are willing to make a long-term commitment. The biggest problems with regard to paid staff are that the funding environment makes it difficult for organisations to hire enough staff and to pay staff well enough that they stay with the organization for more than a year (Mesch 2010, 173-174).

Moreover, the challenges facing nonprofits today is their dearth of strong leaders. Research indicated that there is a growing leadership deficit in the nonprofits sector due to the retirement of the baby boomers, the changing nonprofits environment, and the growth of the sector. Bell, Moyers and Welfred (2006 , 36), found that a quarter of executive directors were planning to leave their positions in the next five year. On the other hand, Tierney (2006, 26-35) suggested that, in order to support the sector’s growth, nonprofits will need to recruit 640,000 new senior managers in the sector for the next decade. These upcoming leadership demands have raised concerns and have placed an even greater emphasis on leadership development. Hence, leadership deficits are considered as another major problem for nonprofits organisations today.

In summary, organisations in the non-profit sector may differ widely in size, mission, and the ways in which they serve the community, but they share common problems, such as funding challenge, accountability pressure, and human resource challenge and leadership deficit. Therefore, nonprofits companies require seeking out better strategic to solve those problems and increase in organisations effectiveness.