3 Challenges that Not Profits are Facing
Running a not for profit organisation can be extremely rewarding, but it can also be extremely challenging. There are a lot of challenges non-profit organisations face today and without adequately preparing for these issues, it could force them into closure.
Here, we will look at 3 challenges not for profit organisations are facing and how they can be overcome.
Charities are allowed to own property, but it is important to realise that any trustees listed on the registry understand they cannot benefit personally from the property. There are challenges relating to buying and disposing of a charitable property. For example, when purchasing a premise, trustees need to be aware of any restrictions which might impact the non-profits use of the property.
To avoid falling into difficulties while acquiring property, it is recommended non profit organisations consult a professional real estate firm with experience in the sector, such as Avison Young. They will be able to advise you throughout every step of the process, as well as help the organisation to find the perfect premises.
Lack of resources
Resources are another major challenge not for profit organisations face; particularly in today’s economic climate. However, many charities have discovered the benefits of connecting with similar organisations to pool their resources.
Finding key partnerships is key to running a successful not for profit business. Charities should ask themselves which types of partnerships they can make. Find similar organisations which share the same values and beliefs. The more not for profit organisations you can partner with, the more resources you will be able to pool.
Not for profit organisations can also reach out to local businesses. Today, businesses are focused on becoming greener and doing their part for the community. Therefore, they may be more open to partnering and contributing to local not for profit organisations.
Finally, funding is another key challenge faced in the not for profit sector. As governments continue to seek ways to cut costs, funding has been held back for numerous not for profit organisations. There has also been a substantial increase in the number of not for profit organisations set up. The increased competition for funding has also presented problems, particularly when it comes to attracting new donors.
The above are 3 of the most common challenges faced by not for profit organisations today. In order to ensure they are running a sustainable charity, these organisations need to be aware of the challenges, and come up with an action plan to overcome them. Pooling resources is a great way for charities to reduce costs and continue operating even during the toughest of climates.