5 Challenges Faced by Nonprofit Organizations

Nonprofit organizations serve a great purpose and make a difference in the community daily. In order to stay both active and effective, nonprofits have to attract supporters to their cause and then convert those supporters to become donors or members that will support their work.  

Although nonprofits serve a great purpose, they are faced with various challenges along the way. Thankfully, there is always a way to turn those challenges into opportunities. We’ve listed some of these challenges and provided you with some tips on how to turn them around and make it work for your organization:

Nonprofit Challenges

1) Retaining/Engaging Donors

Without donors, nonprofits cannot survive. The organization-to-supporter relationship is very important. Today’s donors do not want to think that all you want from them is their money. Rather than asking for money right away, find ways to engage conversations with supporters and give them an opportunity to get to know your organization and build an emotional attachment to your work and mission. These are some good ways to keep donors invested: 
  • -Keep them engaged and let them know that they are part of the team. Let them know that they are an integral part to the organization. 
  • -Let donors know where their money is going and what it is supporting. Give monthly or quarterly updates via email or newsletter. 

2) Lack of Resources

When finances are limited and resources are scarce, it is beneficial to form partnerships with other organizations that have the similar mission and goals. By forming and fostering these relationships, you can achieve more on a larger scale. Remember, there is strength in numbers. 

3) Adequate Funding

Acquiring the necessary funds to adequately operate your organization in its full potential may be a bit of a challenge for some groups. Organizations can solicit funding from foundations, corporations, grants, and philanthropic individuals. Reaching out to local businesses in the community along with community leaders for sponsorships or donations. 

4) Public Awareness

New non-profit groups or organizations that may not be well known in their community yet should put focus on increasing awareness about who they are and what they do. Implementing an online marketing campaign/strategy will allow for your organization to be promoted to a larger audience and can also draw the attention of potential funding sources. Utilizing social media platforms like Facebook, LinkedIn, Twitter, Instagram, and more, will also be very beneficial in reaching larger audiences. 

5) Printed Communication

The days of paper-based marketing and sales are slowly, but surely fading away. For many years, organizations depended heavily on direct mail serving as their main point of contact with current and potential donors. Although direct mail still brings in some money, it mainly targets just one age bracket, which is age 55 and over and makes it quite difficult to track who opened and read the mailer that was mailed. 
The best way to solve this problem is to move online. Instead of sending letters, send emails with an intriguing subject line and include the information that you’re trying to disseminate. Also, if your organization has a website, you can add a “Donate Now” button to your home page which will allow donors to give online. Having the capability to receive donations online can also encourage donors to set up automatic payments and donations towards your organization each month. Plus, millennials are more prone to make donations via text or online if they are contacted through that medium. 

How To Maintain Tax-Exempt Status

In order to remain as a tax-exempt organization or to receive tax deductible donations to sustain the operation of your organization, you must in good standing with the IRS. This status can be maintained by e-filing with ExpressTaxExempt. Within minutes you will be able to successfully e-file one of the forms including in our Form 990 Series or our latest release for political organizations, Form 1120-POL.
Feel free to contact our support team of e-file experts at 704.839.2321 if you have any questions or need help with your e-filing experience. We’re here to assist you Monday through Friday from 9 a.m. to 6 p.m. EST or feel free to reach us 24/7 via email at [email protected].

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