RubinBrown What Not-For-Profit Organizations Should Expect in 2015

TRENDS FOR 2015

Community Need In addition to economic conditions, organizations are responding to other trends impacting the industry. Above all, not-for-profit organizations react to the needs within the communities they serve. According to Nonprofit Finance Fund’s 2015 survey, the need continues to increase. Over recent years, there has been an increase in demand for services with 76% of responding organizations expecting an increase in need in 2015. This creates a “resource gap” as organizations struggle to keep up with the increasing demand. The survey reveals 52% of responding organizations are unsure if they can bridge this gap in 2015. Some of the most prevalent community needs identified included affordable housing, job availability and youth development programs. Organizational Challenges In the same Nonprofit Finance Fund surveys, organizations were asked about their top challenges for the upcoming year. The most popular responses were: Achieving long-term financial sustainability – Organizations know how difficult it can be to build operating reserves given the increase in community demand. Other fundraising challenges such as loss of government funding and lack of unrestricted operating contributions can prove daunting when trying to fund reserves and endowment campaigns. Diversifying funding sources – Organizations are striving to find new earned revenue opportunities while still remaining true to their missions. Offering competitive pay and/or retaining staff – As economic conditions improve and competition for talent increases, hiring and retaining highly-qualified talent often means offering more competitive salaries and benefits. An organization will have to balance protecting its greatest resource – employees – and straining its budget. Responding to cuts in government funding – The need for diversified funding sources and operating reserves is even more prevalent as organizations continue to see local, state and federal government funding reduced. Marketing, outreach and community engagement – Organizations are constantly challenged to attract donors, volunteers, users of services, patrons, etc. in a competitive environment.

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