Non-profit organizations (NPOs) are those organizations whose main aim of establishment and functioning is the interest of the public at large with no associated monetary profit. These organizations take on the responsibility of conducting programs which are generally sidelined by local or state authorities. Though they play a crucial part in maintaining balance in the society through various ventures, they are often relegated to the lowest strata in terms of importance.
There are many problems and issues that constantly hound non-profit organizations. One of the ongoing problems is capacity building. Capacity building refers to the assistance provided to the organizations through other developing societies but the problem is that there isn’t a lot of support forthcoming that can be provided to these organizations to work efficiently. Any variation in these external funds may result in a negative impact on their reliability and service. Non-profit organizations are also affected by the lack of support for generation of funds for their ongoing and future projects. Mostly organizations receive their funding from charitable foundations, government funds and other donations.
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: An effective management and a board of directors play a major role in the success of any organization. Most non-profit organizations lack skillful management service and therefore, fail in maintaining quality of service.
Lack of resources: Another major issue faced by non-profit organizations is lack of sufficient resources such as funds, employees, management services and other such resources. However, this can be built up with the support of other profit making organizations and government sectors. Strategic planning can also help these NPOs to successfully overcome this issue.
Superimposed charges: Non-profit organizations often have to grapple with overhead charges required to carry out these services in an uninterrupted fashion. Most of them do not have a choice here. The funds they receive are barely sufficient to keep their projects afloat and not every one of them has volunteers to carry out the tasks.
Fundraisers are a rare commodity: An additional issue these NPOs face is the problem of finding an appropriate fundraiser for their projects. Not much support is forthcoming from the governments and private enterprises and the entire burden of raising funds rests solely on these organizations. Often the fund provided may not be adequate to cover all the expenses involved and this then needs to be supplemented with commercial aids such as advertising, sponsorships and other grants.
Newly imposed legal laws: The imposition of certain regulatory acts on the fundraising and distribution process performed by the NPOs is another obstacle in the development process of non-profit organizations.
Non-profits organizations often lack money, time and useful resources to build a strategic plan or an efficient management. Better strategic planning under the guidance of a quality leadership management and support from government and private entities can help NPOs overcome all such common issues and work better for the greater good of the needy and society in general.