Top 5 Reasons Nonprofits Fail to Reach Their Goals
Why do most nonprofits fail? And what effect does the economy play on the state of nonprofits today? I would argue far less than most people would like to believe. Yes, the economy is still in a slump and people are being selective with their donations but organizations should no longer be using that as an excuse. The economy has been in a decline for more than four years and the majority of nonprofits have been forced to reduce spending and adjust their budgets. I believe there are greater threats to the financial sustainability of a nonprofit than the economy and these threats become blatantly apparent during a weak economy.
Five of the main reasons nonprofits fail are:
- No Development Strategy or Fundraising Plan
- Understaffed & Overworked Development Team
- Lack of support from Leadership
- Lack of Resources
- Unclear Mission
I will spend the next few posts going more in depth on each of these topics. I will provide you with best practices, insights and resources on how to avoid each of these threats. I encourage everyone to comment and share your experiences. I would love to hear your thoughts on why nonprofits are failing to reach their goals and what steps they should take toward saving their organization.