A lot of blood, sweat and tears goes into running a Nonprofit organization, as is evident by the frequent cases of burnout and secondary traumatic stress experienced by employees. This is because Nonprofits have to do as much, if not more than for-profits with much less money.

Aside from the common issues that for-profits face, like adapting to new technology and staying up to date with accounting and regulatory requirements, Nonprofits face additional challenges and problems specific to their sector.

Familiarizing yourself with the potential problems that could arise will help you to tackle them efficiently and effectively when they arise.

  1. Poor Strategic Planning

A Nonprofit is not in business to make money, yet they still have the same operation costs as a for-profit. This leads to complex calculations when demonstrating that social impact objectives are being achieved.

Nonprofit leaders often feel frustrated at the organization’s lack of meeting the needs of the community. This is often the result of not being able to have a steady income from a source.

This is only one of the many specific challenges that Nonprofits encounter – some more obvious than others. To future-proof your organization and accomplish the mission, awareness and understanding of issues is tantamount.

Nonprofits that go the distance have strategies to mitigate these challenges and use them as a starting point for developing a comprehensive business plan. When Nonprofits approach an operational strategy from this perspective, the long-term sustainability of the organization becomes inevitable.

Do you need help with future-proofing your Nonprofit using forecasting and strategic planning? Click here to read more from Lescault and Walderman on forecasting and scenario planning for Nonprofits.

  1. Diversifying How You Fundraise

Nonprofits expend a lot of energy into securing funds. A practice that often sees them putting all their eggs into one basket. It is important to diversify funding sources and avoid relying on individual donations. A grant writer or fundraising specialist comes in handy in this area.

Corporate sponsorships are easier to come by when one is able to convince sponsors that it will boost their public image. This becomes trickier to achieve when trying to convince the average individual to part with their hard-earned cash.

As such, many Nonprofits rely on government grants or matching schemes. Due to shrinking budgets at state, national and municipal levels, Nonprofits often get less money than they requested, if any. While others get no funding. Therefore, government funds merely serve as a safety net to fill the gap when funds are short within the Nonprofit organization.

Do you need to learn strategies and tools for enhancing donor engagement for Nonprofits? Click here.

  1. Staff And Volunteers: Attracting And Retaining The Right Staff Skills

There is a high demand for qualified social workers and psychologists within NFPs, which is why it is best practice to learn how to attract talented and qualified workers. This is easier said than done which is where a PR consultant can be of great benefit. Not to mention social media job boards.

Many Nonprofits struggle to attract top-tier talent. People attracted to Nonprofit work are often individuals who are dedicated to a cause. Those who are attracted to a cause often are drawn to Nonprofits because of the sense of personal accomplishment it gives them. Helping to meet society’s needs can be just as fulfilling as an enviable remuneration package. Nonetheless, the limited resources that a Nonprofit has makes it tricky to recruit ‘top talent’. Is there a solution to attracting quality individuals before they get snapped up by a corporation?

The solution comes in two parts:

  1. Fight the fear. If these are the individuals that the organization needs, then organizations should invest in them despite the chance that they may leave or cost the company too much.
  2. Where investing in new talent is not possible, then you must believe in your current talent. Provide an engaging work experience. As they flourish they will contribute to the organization with a greater passion.

Another issue is how to attract the right people. When an organization has a strong culture, good leadership and a strong vision, the right people will be drawn to the company as stated by Law 9 of John Maxwell’s 21 Irrefutable Laws of Leadership. Who you are is who you will attract.

With the great resignation, it has opened up the workforce allowing for more opportunities to find the right candidate for your Nonprofit. To read about the impact and opportunities of the great resignation click here.

  1. Donor Retention

The pressure to perform is as real for a Nonprofit as it is in a for-profit organization. Donors are central to a Nonprofit’s ability to perform as they generate the revenue needed for projects.

This is easier said than done in the face of stiff competition. Receiving an individual donation is only the beginning of the donor retention process. A not so easy feat. A lot of work goes into retaining a donor.

For starters, an organization must create a personal bond with each of its donors if they intend to keep them on for the long haul. Donors also need to feel as though what they are giving is worthwhile. This is done by showing donors the difference their contribution is making.

Success at this phase will require personalized communication, sincere gratitude and strategic future contribution requests. This will require an organization to actively work with like-minded individuals.

To learn more about donor retention strategies for Nonprofits click here.


Nonprofits face a daunting set of challenges. Awareness of the required actions to overcome the challenges goes a long way in future-proofing a Nonprofit. When a Nonprofit finds tools that empower everyone in the organization to analyze information and make data-driven decisions, the likelihood of long-term sustainability increases. 

This is easier said than done in an organization where individuals often wear many hats and are not specialists with the dedicated financial knowledge needed within the organization. This is why Nonprofits look to outsourcing their accounting and financial reporting as a quick and viable solution that can save the company 30-40%

At Lescault and Walderman we have the knowledge backed by many years of expertise to help your Nonprofit weather the storms and we know the Sage Software and technology that goes a long way in streamlining a Nonprofit’s operations.

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