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:

1. No Development Strategy or Fundraising Plan
2. Understaffed & Overworked Development Team
3. Lack of support from Leadership
4. Lack of Resources 
5. 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.