According to The Independent Sector, funding-related practices and relationships are one of the challenges that the nonprofit sector faces, and there are myriad reasons that funding-related practices and relationships are challenging for the nonprofit sector. These include the lack of funding and difficulty securing adequate funds, funding structures that incentivize counterproductive practices, strained relationships between funders and nonprofits, and shifts in funding models and strategy.

Mowrer’s Grant-seeking Challenges highlights that funder practices and requirements are considered one of the greatest challenges for grant-seekers. Foundations leaders need to recognize and understand how grantmaking practices can negatively affect nonprofit organizations and can lead to mission drift. Grantmaking foundations have the financial resources that nonprofit organizations need to accomplish their work. Nonprofit organizations are doing the work essential to further the grantmaking foundation’s mission. “The power and influence that flow from money, combined with the near absence of a negative feedback loop in philanthropy, result in potential manipulation of and control over nonprofit organizations,” Janice Pettey of Nonprofit…

Engaging board members can significantly increase fundraising efforts and yield greater results. While encouraging board member involvement for fundraising can be challenging, it's the right thing to do. Board members may be unaware of their potential contribution or the organization's fundraising strategies, or they just may not know where to start. However, it's important to recognize the value of board member involvement and reconsider any previous notions that it is unnecessary.

1. Make fundraising an integral part of the meeting agenda. Include a short session at the beginning of your meeting to discuss fundraising and the importance of everyone's attention and participation. Every board member should be willing to discuss this.
2. Make fundraising a pillar of the organization and more than just a discussion. You must ensure that every member of the organization is involved in fundraising from the very beginning. It has to be the air that your organization breathes.
3. Set clear expectations for board members. Laying out the specific fundraising needs of the organization is your first…

Public policy and the nonprofit sector

Public policy at all levels of government has the ability to threaten the work of all nonprofits (National Council of Nonprofits, 2019). At the federal level, we see this threat in tax, regulatory, and spending policies. Notably, about 32% of nonprofit funding comes from government contracts and grants. The effects of federal policy often trickle down to the state and local levels. This creates implications for an organization’s beneficiaries in regards to available resources and funding for programming.

Despite the importance of public policy to the nonprofit sector, there is a severe lack of engagement among nonprofits. According to the National Council of Nonprofits, “compared to the business and government sectors, nonprofits have been sitting silently on the sidelines.”

A missed opportunity

Many nonprofits see public policy engagement as a peripheral activity not central to their mission. In reality, however, it presents a significant opportunity to increase their impact. The National Council of Nonprofits as of 2019 has found that “nonprofits with the most extraordinary levels of impact do not focus exclusively on either policy advocacy or direct service – the highest…

It is no secret that nonprofit organizations often have a hard time retaining employees. The work can be difficult, staff is underpaid, and burnout levels are high. These issues often lead to a decline in employee work performance and may even cause staff to seek additional opportunities for employment. Many valuable resources of the organizations are then spent on recovering from turnover including recruiting, hiring, and training new talent.

It is important for the leadership of nonprofit organizations to invest in programs aimed at improving employee satisfaction. These programs need to be comprehensive and highlight different aspects that typically contribute to employee burnout or dissatisfaction. It is vital to understand what is contributing to employees feeling dissatisfied and aim to amend these issues. Five major considerations that should be included in employee-focused programs are discussed below.

Leadership strategies and changes: It is critical to recognize that changes to basic leadership structures can have a significant impact on employee satisfaction. Organizations should analyze the structural base of the leadership within the organization and identify possible modifications that could allow tasks to be delegated differently. This often allows employees more opportunities for organizational growth. It is beneficial to recognize additional ways for staff to engage in leadership opportunities and…

Nonprofit leaders in 2020 are faced with the difficult challenge of recruiting and retaining employees for long periods of time. They are learning the ways different generations adapt and grow in the workplace and how to build an environment that helps the organization succeed.

Leadership styles such as coaching, delegating, and directing, impact the leader and employee office relationships. It is important that the leadership teams understand their employees’ communication styles to further guide them in their positions. Leaders that empower their team to take on initiatives and pursue skill growth will develop a productive staff.

Research shows that there is high turnover as employees experience burnout from a lack of work-life balance, fair compensation and career growth opportunities. These leadership teams need to focus on the overall experience of mentoring their employees in the first year, as that is a critical time that impacts the employee’s overall commitment to the organization. Many nonprofit organization employees work in direct service fields, meaning they are hands-on and emotionally connected to the vulnerable population their organization serves in the community. They often have to be readily available and dedicate many hours toward fulfilling the mission, which can be emotionally exhausting.

This sector faces the challenge of having limited funding to support their employees and mission, which can lead to…