Some non-profit organizations frequently struggle with fundraising. Why is this? Why are some non-profit organizations more successful than others when it comes to finances? There have been some studies done on these issues and their relation to things like mip fund accounting as well.
Currently, the economy has played a huge part in the struggles that some nonprofits are currently having. People are making less, and therefore it affects people’s willingness to give. In 2007, a study discovered that 26% of charities were raising less money, and only 48% were raising more. Although 48% may sound significant, the usual trend is that most non-profits get some sort of increase yearly because of inflation and other economic factors. As the American economy has suffered from a recession, the amount of giving has decreased.
Although charities and non-profits are suffering because as the giving has decreased, the need has greatly increased. People who were possibly contributing to the organization financially are now losing their jobs and seeking assistance from the same organizations that they were once supporting. Increased poverty equals increased need, and this combination of problems will end up causing a lot of nonprofit charities to suffer.
Charities that serve lower-class and disabled individuals continually struggle with financial issues. As previously stated, even though the current state of the American economy definitely plays a part in the fundraising struggles that many different organizations have started to see in recent years. Awareness is necessary for successful fundraising endeavors. Many times, the public is uninformed about issues in their own communities. Lack of awareness has affected other nonprofit organizations in the past. Lesser-known diseases and causes that people don’t realize have a large impact on society often get forgotten when people are deciding who to contribute funds to. Many organizations first need to formulate a plan which focuses on raising awareness in the community or area they are in.