Nonprofit organizations provide very valuable assistance to society. With shrinking funds for programs and a more competitive environment, nonprofit organizations will need to rethink their corporate strategies for future success.
In 2005, there will be approximately 1.4 million nonprofit organizations registered to the IRS. The majority of nonprofits depend on volunteers at various levels. In fact, 74% of all public charities and 83% of all foundations are small; they have less than $500,000 in expenses and limited staff.
Negative market trends signal trouble for many nonprofit organizations. According to the Nonprofit Research Collaborative in 2011, 59% of nonprofits reported their donation income was flat or lower than 2010. Although 41% of nonprofits saw an increase in their donations during this timeframe, smaller charities with less than $3 million in total spending saw donations drop.
In fact, food pantries and homeless shelters across the nation reported more usage which increased the cost of operations. Furthermore, 8% of charities noted they were in danger of closing according to the Center on Philanthropy at Indiana University.
Demanding contributors and the public in general are demanding more accountable and efficiency after several high profile scandals. Nonprofit organizations are often influenced by their stakeholders that include clients, board of directors, committees, government officials, community leaders, staff, and volunteers.
However, most nonprofit organizations haven’t completely embraced this rigor due to various reasons (i.e. limited resources and the lack of knowledge). Yet, nonprofit organizations have a greater need for increased effectiveness in their processes during this economic crisis.
Describe your professional experiences with nonprofit sustainability issues.
© 2012 by Daryl D. Green