Non-profit organizations are vital to all communities. They provide much required services to those in needs and derive from the humanitarian, religious, healthcare, social service, educational, or environmental sector. While striving for organizational success, non-profit organizations are faced with many obstacles. A non-profit organization often faces a number of issues in the different phases of its growth. Some of these are: Lack of proper management, Lack of resources, superimposed chargers, problems in fund raising, newly imposed legal laws, hiring of qualified staff, unrealistic expectations, inadequate facilities, to a lack of volunteers and funds. The objective of a Non-Profit Organization is to provide services to the community without any monetary profits. They are considered as silent providers, with the interest of the public and private wellbeing at heart. Many such organizations face various problems and issues on a day to day as well as long term basis.
These Challenges can be changed country to country like some problems faced by NGOs in Sri Lanka might not be a problem of NGOs in China. In this report we have identified common problems faced by NGOs and other special challenges for NGOs in different countries. Challenges faced by Non Government Organizations:
The health of the nonprofit sector depends on the quality of its executive leadership. Agency leadership, including board members, must be able to raise fundamental questions related to strategy, mission, and accountability, as well as the roles that their organizations play within their communities. For many nonprofits, being responsive to changes in the environment means a heighten need to: Determine the most effective way to serve a client population that may be growing or changing; Develop strategies and processes to access and manage new funding streams; Decide where and how to make budget cuts;
Develop technology to capture information for reporting and billing; Manage cash flow challenges;
Consider new partnerships, explore possible collaborations, and consider mergers or acquisitions. Given the challenging changes in the typical nonprofit's task environment, effective board leadership becomes particularly crucial. The issues facing the nonprofit sector underscore the need for responsive, skilled and effective board leadership in maintaining and improving the quality of organizational performance. It is appropriate that nonprofit boards take a leadership role in assisting agency management on critical issues such as mission definition and strategic planning, legal compliance and conflicts of interest, oversight of agency financial management, resource development, establishing inter organizational collaborations, cultivating community relationships, and opportunities for capacity-building training.
NGO leaders face extraordinary challenges which are very distinct from those faced by leaders in government and the private sector. They often function in isolated and unsupported circumstances, and are faced with a set of complex and interrelated challenges relating to NGOs’ social change mission, increased pressure for accountability and transparency, the need for unquestioned integrity and to maximize limited resources, and the ability to network and position their organizations in an uncertain external and political environment. Increasingly, this situation is raising important questions about leadership in the sector, the institutional memory of the sector, and the individual and collective capacity of NGO leaders to respond and overcome these challenges. Furthermore, NGO leaders are also confronted with a new set of challenges, including the role and impact of technology on their organization. Funding problem
For most Non-Profit Organizations, the crucial relationship is that shared with the Funder, and not the end-user. Funding is received to address core issues such as youth or ...