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Difficulties Facing Nonprofit Organizations: What Every Nonprofit Leader Needs to Know

Nonprofit organizations serve individuals and communities, making a difference in people’s lives. Of course, it is not an easy job. This article explores some difficulties every nonprofit leader need to know.

Money, Money, Money!

Money—it’s at the centre of every charity executive, philanthropic fund manager, and nonprofit leader’s focus. What is the amount needed to greenlight this new program? Who should we target to raise the sum? How can we attract new donors to raise more money for the cause? 

The questions can become near endless—and the focus, all-consuming.

New Challenges Arising

In addition to the incessant challenge of funding, charities and nonprofits are facing new difficulties in the wake of constantly changing economic conditions. Here are three  difficulties facing numerous nonprofit organizations today:

  • Finding New Donors: Individuals are often cautious about who they give their money to. Numerous donors conduct thorough research, take advice from their advisors, and engage family and friends with similar values before committing to donate to a cause. If your organization’s name doesn’t come up in that research, they might not know you exist.
  • Donor Retention: To ensure your donors remain long term, you need to offer value. Creating a source of value for a profitable business is relatively straightforward—it’s simply the unique product or service that the customer obtains, usually in exchange for cash. Of course, this is not the framework in which a charitable organization operates. 

The main source of value a charity creates, by definition, is for its beneficiaries—the individuals or other causes at the core of the organization’s mission. Because of this distinct difference, to properly position a charitable organization to ensure the greatest impact, there exists a vital need for nonprofit professionals to not only comprehend the recipient, or beneficiary value proposition, but also the donor value proposition. While understanding the former is quite simple, grasping the latter is where the challenge comes in for many organizations.

  • Lack of Resources: Like many nonprofits, the majority of your resources, such as cash, donated items, and volunteer hours are likely going toward your overarching mission—but limited cash flow doesn’t automatically mean you can’t get your name out there.

Bloom Has You Covered

At Bloom Investment Counsel, Inc., we recognize that these are significant challenges for many nonprofits, which is why we’ve pulled together a comprehensive guide to address these issues.

As a nonprofit leader, you’re looking for solutions to these issues to maximize your impact in your community. Here’s the scoop on how to go about meeting the challenges commonly facing charitable organizations today!

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Finding and Retaining Donors

Engaging new and existing community members isn’t always easy—but it is possible, even in trying times. As our society turns to the philanthropic sector to deal with the issues we face, as leaders of nonprofit organizations, it’s vital to comprehend and recognize the funding model best suited for your organization in order to attract relevant donors. 

Finding the right donors for your charitable organization is challenging, and there are negative consequences if your donors are not well matched to your cause—it’s not beneficial to any party involved. Oftentimes, it ends with donors cutting off funding, and valuable charitable programs take a large hit, unable to make the intended impact—or are perhaps even eliminated altogether.

What’s Your Model?

Once you can pinpoint the funding model most relevant to you, you’ll be able to further understand and implement funding strategies and organizational endeavors to ensure your programs prosper for years to come. 

Visit Stanford’s Social Innovation Review, which has identified 10 unique funding models that nonprofits can use to best target pertinent donors to ensure long term prosperity. With an understanding of these 10 funding models, nonprofit leaders can use the for-profit world’s valuable practice of engaging in succinct and clear conversations about long-term financial strategy.

Creating a Personal Touch

As humans, we are natural givers. The philanthropic inclination is rooted in human experience—a primary motivation for giving for many is feeling a personal connection to a specific cause or organization. Thus, it’s vital to maintain personal ties with your donors and engage with your donor community in a way that is personal and sincere. 

It could be as simple as sending them a personalized, handwritten thank you note and keep them apprised of the impact their dollars are having on the cause. Perhaps it’s recognizing dedicated volunteers on your social media platforms (with consent). Whatever method you choose, be sure to commend them for their contribution. Empowering them to carry your message may have a larger impact than you anticipated—it could help to welcome others within their circle to donate as well.

Everyone Loves a Story!

Testimonials are an extremely powerful form of advertising for charities. Undoubtedly, everyone loves to hear a heartfelt, feel-good story. Toronto-based Strategic Growth Partner, Joanna Bacchus, weighs in on this point.

“The value of conveying the touching stories and situations your charity has had a hand in shaping cannot be overstated. Specific stories expressing genuine sentiment are extremely powerful—there lies an ability to foster a sincere emotional connection, which can actually translate into donations and volunteer hours by touching people on a deep level and altering their motivations and actions.”

How Bloom Can Help Charities in the Giving Journey

If you’re seeking further advice, look no further than Bloom Investment Counsel, Inc. We are pleased to work with philanthropic organizations and fund managers to make the most of the donations you receive by translating that capital into dividend paying investments that foster stable, consistent cash flow–ensuring your charity’s programs and efforts can thrive for decades to come.

Building Wealth and Cash Flow

Creating stable, consistent cash flow with your investments is hard. Bloom makes it easier. 

We are your partners in wealth building providing stable, consistent income solutions for your financial peace of mind. Our committed goal is to help ensure your money is working for you, and not the other way around. 

Custom Solutions

Bloom Investment Counsel is delighted to work directly with our clients’ attorneys and advisors, including family office and multifamily clients, providing custom, personalized solutions to help each client reach their unique diversification goals in a manner that best suits them. Continue making an impact in your community, and leave the legwork to us!

Income and Tax Strategies

Bloom is pleased to assist wealthy individuals, foundations, corporations, institutions and trusts in achieving financial independence by drawing upon a myriad of income and tax strategies—skillfully capitalizing on the wealth of returns produced in the form of three major income streams – dividends, capital gains, and interest income. Our methodology has worked for countless clients—we proudly have over 36 years of experience under our belts, and have managed over $2.5 billion in assets.

How to Contact Bloom

Visit our website or email us at to learn more about the ways in which you can experience financial freedom with multiple, steady, and reliable income streams.

This content is provided for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this content should consult with his or her financial partner or advisor.

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