Challenges Experienced by NonProfits

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ChallengesExperienced by NonProfits

Anonprofit organization is considered a particular type of corporationorganized to meet specific tax-exempt purposes. The only way that aninstitution can qualify for nonprofit status is if it is formed tobenefit the public, a specific group of individuals, or themembership of the nonprofit. A nonprofit organization is createdpurposely for reasons other than making a profit. They are meant toadvocate for a particular point of view often overlooked by amajority because it affects a small percentage of the population.Furthering a given social course is their main agenda like rights ofpersons with disability. The nonprofit organizations have acharacteristic of using its surplus revenues to achieve their goalsand objectives. Examples of Nonprofits include politicalorganizations, religious organizations, membership clubs like acountry club, and credit unions. They face major challenges in theirday-to-day operations, which at the end of a business year, arereflected on the outcome of the intended purpose. For my learningjournal, I will discuss different perennial problems for FeedingAmerica Organization. They include importance of the mission,character of the board of directors, donations, and challenges inexplaining what the institution does.

TheImportance of the Mission

FeedingAmerica organization is the largest hunger-relief society whosemission is to work together to end hunger. Their mission is welldefined, and they put in place plans that will help in achievingobjectives. However, it lacks the inherent clarity of purpose. Itseem harder to sell it to supporters and well wishers. Mission creepremains as one of the most disruptive forces to arriving at the setgoals and objectives. Forbes Nonprofit Council (2016) states thatmission creep is a major challenge that nonprofit organizations face.A majority of internal and external shareholders can lead a nonprofitastray. Since they receive funds from different funders, the funderscan dictate the terms of how the funds are going to be used. Theyexert pressure on nonprofits to broaden their mission to accommodatesome grant making interests. With this form of pressure, nonprofitscan deviate from their core purpose of existence. The management of anonprofit should be able to say no to grants that are a stringattached since they can cause a mission creep. It does not meansaying no to funding but being able to be flexible with the use ofthe money. This is because mission creep can stretch the resources ofan organization so much that it loses its ability to pursue its setgoals. The management should not deviate from the standard operatingprocedures more so if it falls outside the scope of theorganization’s mission.

Characterof the Board of Directors

Accordingto Forbes Nonprofit Council (2016), nonprofit leaders are normallystubborn. Most employees in Feeding America organization work towardtheir own gain. As a result, the board meetings do not degenerateinto a rubber-stamping exercise hence, that its leaders much neededstrategic guidance. Furthermore, board members for their part wouldfeel that their time was not well utilized. Some members of the boardcome in on a volunteer basis and sign a contract of what they can do,but when it comes to attending meetings, a relatively significantnumber does not participate. For an organization to succeed, boardcomposition plays an important role. The composition of a boardshould have a different composition of professional background, withrepresentatives from the private sector and various segments of theglobal public landscape. In every institution, diversity creates richand ultimately helpful discussions that aids in decision-making. Thenonprofit sector also suffers from a leadership capacity deficit. Itis up to nonprofits to build their leadership capabilities andimprove how leaders are replaced. A nonprofit has better-suitedleaders, but worse still is that they deviate when trying to achievean organization’s strategic plan and may not have a succession planin place. An abrupt departure or retirement could leave theinstitution empty-handed when it comes to leadership succession.

Donations

InAmerica, most there is high level of unemployment, poor health,housing instability, among other lifestyle problems. For thesereasons, Feeding America organization face challenges while donatingits aid. In the recent past, the number of donors has dwindledbecause of the financial crisis of 2008. However, per capita givinghas gone up as individual donors continue funding groups they decideto support (Logan,2016).The variation in the distribution of funding may result from thehuman-made or natural disaster. An example is if an earthquake hitsany region, most funds end up being used in reconstruction thanfunding nonprofits. Furthermore, there is no way that nonprofits canescape government-funding cuts. The Recovery and Reinvestment Act of2009 has led nonprofits receiving fewer funds as compared to beforethe financial crisis of 2008 (Pfeifer,2013).These organizations continue to get less money less often and when itgets into their accounts, are in arrears. The steep cuts fromgovernment agencies have forced these institutions to rely more onthe public sector for the much-needed funds. Moreover, this has beenescalated by an increase in nonprofit organizations resulting instiff competition while sharing the allotted monies from the privateand public sectors. The quagmire is that funding sources are beingsolicited by multiple organizations, limiting the number of donationsthey can make or they may give out fewer funds so that they cansupport more organizations.

Challengesin Explaining what the Institution Does and Technology

Consideringthe programs a nonprofit may undertake, it is an uphill task topublicize some programs than others. It becomes difficult to getmedia that might be interested in a nonprofit’s press releases.Moreover, lack of expertise can prevent a nonprofit from publicizingits efforts (Bielefeld,2014).Some were created with the personnel having limited knowledge in whatkinds of resources are available to help them. Getting exposure is achallenge because it hinders procurement of trained staff that canassist in the development of the organization. On matters technology,feeding America program are so much concerned with providing helpand end up lagging behind on advances in technology. They end uprelying on interns and students to save on expenses. Many of theseorganizations are challenged when it comes to owning a bandwidth orestablishing a strong digital presence. Finances are limited tononprofits to help them incorporate innovative technologies, whichthrough online marketing can help raise money and awareness thusdrawing their attention to potential donors.

Conclusion

Asyears go by, nonprofits are going to experience new challengescoupled with those that have been affecting them over the years. Whenthe problem of fewer funds, high demand, and reduced cash flow arecombined, it results in a strained and reduced staff with longerworking hours. It is up to the nonprofit organizations to findopportunities in the middle of the chaos so as to achieve their setgoals and objectives. They should not be driven by profits becauseafter all transforming lives is a great achievement for anyone whogets involved in charitable work.

References

Bielefeld,W. (2014, December 31). The Challenges of New Nonprofits – Non ProfitNews For Nonprofit Organizations | Nonprofit Quarterly. RetrievedOctober 16, 2016, fromhttps://nonprofitquarterly.org/2014/12/31/the-challenges-of-new-nonprofits/

ForbesNonprofit Council. (2016, May 17). Five Challenges All NonprofitLeaders Must Come To Terms With. Retrieved October 16, 2016, fromhttp://www.forbes.com/sites/forbesnonprofitcouncil/2016/05/17/5-challenges-all-nonprofit-leaders-need-to-come-to-terms-with/#1b6e92624c32

Logan,E. (2016, January 4). 4 Challenges Facing Nonprofit Marketers in 2016(And How To Beat Them). Retrieved October 16, 2016, fromhttp://blog.hubspot.com/marketing/challenges-facing-nonprofit-marketers-in-2016#sm.0000ghafskmnycx4uca2agg2kv5vq

Pfeifer,S. (2013, November 20). Corporations increasingly spying onnonprofits, group says. Retrieved October 16, 2016, fromhttp://articles.latimes.com/2013/nov/20/business/la-fi-mo-corporations-increasingly-spying-on-nonprofits-group-says-20131120

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