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Challenges Faced by The Non - Profit Organization

The document discusses the key challenges faced by non-profit organizations. It identifies 5 main challenges: 1) Fundraising is difficult as organizations cannot raise funds until registered; 2) Gaining community support takes time and effective communication; 3) Completing necessary legal registrations and paperwork can be daunting; 4) Bookkeeping and accounting responsibilities require accounting skills or outsourcing; 5) Complying with multiple regulatory authorities involves ongoing reporting that increases with organizational complexity. Overall, the passage examines the operational hurdles non-profits must overcome, especially in their early stages.

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Trupti Deore
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164 views2 pages

Challenges Faced by The Non - Profit Organization

The document discusses the key challenges faced by non-profit organizations. It identifies 5 main challenges: 1) Fundraising is difficult as organizations cannot raise funds until registered; 2) Gaining community support takes time and effective communication; 3) Completing necessary legal registrations and paperwork can be daunting; 4) Bookkeeping and accounting responsibilities require accounting skills or outsourcing; 5) Complying with multiple regulatory authorities involves ongoing reporting that increases with organizational complexity. Overall, the passage examines the operational hurdles non-profits must overcome, especially in their early stages.

Uploaded by

Trupti Deore
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Name: Trupti Nivrutti Deore

Specialization: Business Analytics


Roll No: 2k191133

Assignment - Challenges of Non- Profit


Organization

Question: Discuss in detail the challenges faced by the Non- Profit


Organization.
Ans:
1) Fund raising

This is an area of major concern for fundraising organizations. No organization can raise funds until
the state application is registered. It is common for start-ups to be unprofitable without funds until
paperwork is completed. To get started, non-profit organizations look for internal sources of funding
from members, family, friends and other affiliation groups.

2) Community support

Gathering community support takes time and it is a matter of how well the organization
communicates its goals to the community. Effective branding practices are extremely helpful in
gaining community support. The list of organizations with important directories such as Help net
America, Idealist is very effective in gaining the support of the members of choice in the society.
Getting dedicated volunteers to carry out the organization's projects is another challenge.
Organizations tap local resources first. There are several online volunteer directories that provide a
listing of volunteer preparedness for each area.

3) Registrations & Legal Paperwork

Generally, the secretary of the state office registers with the internal revenue service and AG's office
before starting to collect non-profit names. It is easy to register with the Office of the Secretary of
State. People sometimes struggle to organize and draft documents for fear of the unknown.
Institutional documents (such as articles / association articles) should be formatted with slight
deviations. Operating documents (such as articles) are usually not the recommended format and
creating ideas is only a limiting factor.

4) Book keeping & accounting  

Responsibility for all non-profit regulators is a major concern and is the basis of the book's
disclosure. Non-profit organizations try to keep their books and records up to date. Organizations
that do not have accounting skills often outsource this work through professional accountants.
Although non-profit leaders are not expected to be proficient in auditing, they are expected to be
able to read and understand financial statements.

5) Compliance with multiple authorities

In compliance, the funds are sent to the Office of the Secretary of State, IRS (Form 990) and the
relevant funds to the Attorney General where the funds are deposited. Compliance is multiplied
many times over for an organization that hires employees or chooses complex methods for
financial years. Although it may seem difficult to follow in the first year, from time to time it
becomes a mechanical process. An organization with well-established internal systems and
controls can greatly automate this process. There are many simple and inexpensive software
programs that can automatically generate profit reports.

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