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As the world keeps evolving, nonprofits find themselves with a lot on their plate to handle. From the ever-changing regulations to increased competition for donor money and volunteers, running a nonprofit in the modern age is not always easy. These challenges are, however, fun and make the job more rewarding in the end since these challenges can lead to innovation. Solutions to some of these problems are what makes nonprofits always fresh. The most important thing here is that you need to know the issues and challenges that you are likely to encounter to stay ahead of the game.

Here are some of the issues that you are likely to encounter as a nonprofit leader going forward.

  1. Government regulations and taxation regime changes

A leading concern, both within and without nonprofit world is the impact of the tax reforms and regulations that always change. From the changes in taxation and paper-cutting move by the Trump Administration to the changes in tax code, nonprofits are always faced with challenges in adapting to the government regulations that change each time a new president comes in. Some of the questions that nonprofits struggle to find answers to include what is the likelihood of an increase in standard deduction that a person donates? Will it allow donors to increase their donations? With the regulatory changes, will we be able to receive the same or more funding?

  1. Talent retention and growth

Many nonprofits always find it hard to attract and retain talented employees that will help them achieve their goals and seize opportunities for growth. As such, most of them fear to invest in talent development initiatives because employees keep leaving leading to losses. However, although some employees may leave, you should always try to create an environment that promotes learning, growth and development to attract new talent to compete in the future.

  1. Technology challenges

Technology is a perpetual challenge to all nonprofits. The changes in how things are done, thanks to evolving technology, have made the old methods such as manual, paper-based processes obsolete. Also, outdated software keeps increasing the cost of operations as nonprofits try to acquire new systems to keep going. Old ineffective software reduces reliability, therefore, affecting transparency that is critical in any nonprofit. Lack of up to date and secure software platforms affects growth, funding and donor funds. Since new technologies can improve outcomes in many ways for nonprofits, the right technology also creates positive effects and reduces reliance on the human workforce. In turn, it leads to growth that is fast and painless.

  1. Political and social unrest

With the coronavirus, 2020 will be a year of political, economic and social disruption. The year has already been characterized by the absence of meaningful legislative accomplishments that advances the development interests of different sectors.  As such, nonprofits will find it harder working with all the noise, and other challenges in place and their funding will also be reduced significantly. Nonprofits must, therefore, reconsider their funding priorities and consider partnerships for the common good.

  1. Sustainability issues

Sustainability is crucial in an organization, be it profit or nonprofit. In the past, nonprofits were mainly focused on leadership, resources and services. However, with the changes in society, nonprofits must at all times, evaluate their missions and align with the needs of a customer and their preferences. For nonprofits, sustainability depends on the ability to identify the changes in donor behavior and change the structures and strategies to conform to these new norms. This is not easy and is expected to be tricky in the coming years as donor behavior keep changing. Cracking this code will be a competitive edge and will see the rise in fundraising money.

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Scott Koegler

Scott Koegler is Executive Editor for PMG360. He is a technology writer and editor with 20+ years experience delivering high value content to readers and publishers. 

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