The objective of a Non-Profit Organization is to provide services to the community without any monetary profits. They are considered as silent providers, with the interest of the public and private wellbeing at heart. Many such organizations face various problems and issues on a day to day as well as long term basis.
For most Non-Profit Organizations, the crucial relationship is that shared with the Funder, and not the end-user. The input and say of the end-user is minimal. Funding is received to address core issues such as youth or minority ethnic groups, health, irradiation of poverty, safer environment, crime prevention and education, to name a few. Non-profit Organizations have to brilliantly satisfy the needs of the funder by attending to these issues and projects. A vast number of these organizations receive funds in order to meet the urgent needs of the community.
There are many challenges a non-profit organization faces when providing these services. A crucial issue faced by the organization is that the money generated through the office not being adequate to cover the expenses of the end result. Commercial aid is sort for to overcome this issue, through grants, sponsorships and other means. In the recent past, funding from local establishments and governmental authorities have stipulated certain conditions when working with specific groups, thereby posing a huge burden for these organizations. As the cost of meeting the need rises, the end user is also not in a position to meet the extra expense. Looking at this issue in an intellectual way, it is obvious that it will be devastating to go ahead with such projects. Though it is not viable for a well established company to take up such a project, it is expected for a non profit organization to work in such an environment.
A growing concern a non profit organization has where the full cost is not met by the funder, thereby leaving the organization to weigh the pros and cons, and decide whether to accept or turn down the money provided, due to the fact that reduction of funds will lead to a reduction of quality.
Another important challenge a non-profit organization faces is in relation to costs of overheads in delivering such services. Quite often this is looked at with mistrust by the funder, as they expect all finances funded by them to deliver the end result, not taking into consideration the other factors that are equally important to deliver the goods. Thereby, their belief in restricting funds would restrict cost. What they fail to realize is, in reality the efficiency and program quality is undermined.
Another growing concern they face is the difficulty in finding funders for non-profit organizations. Governmental and non-governmental organizations shun away from these sectors, and are also very critical, always looking at them with a caustic eye.
If funders or other support organizations could create a more lucrative environment for these non-profit organizations to operate, and if they carry out a more intellectual approach to funding, better results could be achieved by these organizations.