3 potential threats nonprofit leaders should keep in mind

September 4, 2013

3 potential threats nonprofit leaders should keep in mind

While nonprofits have an overarching mission to do good in the community where they are located, that doesn't mean they are exempt from rules and regulations that other organizations have to follow. There are some policies that make it a bit easier for nonprofits to flourish, but it's definitely not easy to sustain success. Below are a collection of some of the threats and distractions that can act as potential roadblocks for today's nonprofit organizations:

Fewer contributors due to limitation on tax deductions
Developing a donor network is difficult enough for many nonprofits, but it could be even more challenging if President Barack Obama chooses to impose restrictions on the amount of money people can claim for charitable giving when filing their taxes. Many people write off their donations on their taxes. If the government reduces the savings Americans can achieve on their taxes, nonprofits should expect to see far fewer donations sent their way, stated an article written by James Toscano, principal of Toscano Advisors, for the Minnesota Post.

A volatile economy
While the American economy appears to be on an upswing from the Great Recession, experts still aren't confident in its current state. When the economy is in dire straits, so are nonprofits. Americans are more comfortable donating to organizations when the business environment is strong, rather than when their investments could be taking a turn for the worse. According to a piece for Sustainable Business Oregon written by Stephen Marc Beaudoin, executive director of the PHAME Academy, nonprofits that struggle because of the economy will have to be especially creative when it comes to fundraising.

Failing to find qualified leaders
Many nonprofits are run similar to today's corporations, but fewer people are interested in joining these organizations. Americans often feel directors at nonprofits don't make as much money as those in for-profit leadership positions. Toscano mentioned this can be a serious problem as about one-third of current executive directors at nonprofits are expected to step down in the next few years. Organizations must be proactive in recruiting qualified candidates, preferably with MBAs, to help guide the nonprofit into the future. Making succession planning a higher priority may also be a good idea for nonprofits as the competition for top talent is greater than ever.


Ready to chat?
Get in touch today to request a no-obligation savings evaluation.


Throughout our membership in the Unemployment Savings Program, First Nonprofit understood our demands, community dynamics, and the importance of seamless services; that allowed us to serve our constituents better.

Prevent Blindness America, Chicago, IL

Because INCS advocates for the operating conditions that allow charter public schools to provide high quality public education, partnering with First Nonprofit was an easy decision. First Nonprofit’s unemployment programs provide our member schools two operating elements crucial to their ability to provide high quality public education: savings and budget certainty. Capable, committed teachers are the key to student success. By participating in the unemployment insurance savings plan, charter public schools gain peace of mind and are able to invest more money in their teachers.

Illinois Network of Charter Schools, Chicago, IL

It has been our sincere pleasure to maintain a strong, vibrant business partnership with First Nonprofit. We greatly admire their strong industry knowledge, technical expertise, constant professionalism, knowledgeable and dedicated staff. They are always extremely responsive, personable and provide us with the necessary guidance and recommendations on a numerous variety of employment scenarios.

Thresholds, Chicago, IL

NYCON members who use First Nonprofit’s programs enjoy enduring savings and improved efficiency. Our association knows that success, because from the beginning, we achieved the same great benefits. Great savings, seamless technology, and responsive service. NYCON highly recommends First Nonprofit’s remarkable unemployment solutions.

New York Council of Nonprofits, Albany, NY

Visually Impaired Preschool Services has been a client of First Non-Profit since it was first offered as a benefit of VisionServe Alliance. We completed a thorough evaluation of cash savings to our agency before taking advantage of this wonderful benefit and it has been a very wise decision. Our experience with the processes from accounting to claims have been professional, expeditious and easy.

Visually Impaired Preschool Services, Louisville, KY

Luckily for us, our interactions regarding any issues with staffing has been very minimal! I can say that all other interactions with regards to billing, 941 reporting, etc. have been extremely pleasant, accommodating and easy to work with. Kim Ghanayem is always prompt, professional and friendly. Thank you so much!

Neurologic Music Therapy Services of Arizona, Phoenix, AZ

First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.

Visually Impaired Preschool Services, Louisville, KY

The Ensight Skills Center has enjoyed working with First Nonprofit for several years. We are enrolled in their Unemployment Savings Program and although we have not required a lot of intervention, there have been a few times. I know others have dealt with the same problem of unemployment fraud over the last year and in our case, a call to First Nonprofit (they actually answer their phones) cleared up the issue. They also sent us a letter to send to all our employees telling them what they needed to do to prevent this in the future and protect themselves. What a relief! Over the years if I have questions or concerns, they are happy to listen, advise and help if they can. Another BIG advantage of using First Nonprofit is that all the money that is paid into the Unemployment Savings Program lives on my balance sheet as an asset. The money continues to be Ensight’s not the governments. First Nonprofit has certainly given me peace of mind.

Ensight Skills Center, Inc, Fort Collins, CO