Problems Facing Non-Profit Organizations

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Challenges Facing Non-profit Organizations
Non-profit organizations are vital to all communities. They provide much required services to those in need 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. These challenges range from the hiring of qualified staff, unrealistic expectations, inadequate facilities, to a lack of volunteers and funds. Non-profits like for-profit businesses can suffer devastating blows to organizational success. Though the definition of organizational success varies from business to business it generally includes attaining organizational goals. While it’s ideal and advantageous to set forth goals in the non-profit world, it’s important to be aware of and acknowledge unrealistic goals and expectations. Unrealistic goals can have a negative impact on the success of an NPO (non-profit organization) and also the relationship of the primary team involved in NPO’s: the funders and the grantees. These unattainable objectives primarily involve costs and are fueled by non-profits “spending too little on overhead and underreporting their expenditures on tax forms and in fundraising materials.” (Gregory & Howard, 2009, p. 50) This in turn leads funders to “expect grantees to do more and more with less and less” thus putting pressure on funders to confirm to ill-contrived unrealistic expectations. The key to oversetting unrealistic expectations first begins with funders as they have more pull and power in the funder/grantee relationship. Changing expectations will lead to the reduction of underreporting and misleading figures. In addition funders should “clearly communicate their program goals to their grantees” and they should also concentrate more on outcomes rather than costs. (Gregory & Howard, p. 52) Staffing is a crucial factor in running any business. One challenge that non-profit...
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