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The Biggest Challenges Facing Non-Profit Leaders in 2023 and Beyond

Published on by Rob Ford in Not-for-Profit

The Biggest Challenges Facing Non-Profit Leaders in 2023 and Beyond

Non-profit organizations play a vital role in our society, providing essential services to those in need and making our communities better and stronger. However, they’re sometimes the most vulnerable to shifts and trends, and the first industry to have to face challenges that could threaten their future. As macroeconomic trends continue to shift the trajectory of how we live, work, and collaborate, it’s critical for non-profit leaders to stay informed and ahead of the curve.

What are some of the biggest threats to non-profit organizations in 2023, and how do non-profit leaders find the bandwidth to tackle them?

The ever-present funding challenge

One of the biggest challenges non-profit organizations have always faced is funding. In recent years, there’s been a decline in government funding for non-profits, and this trend is likely to continue in 2023 and beyond. You can hardly visit any news source today without tripping over a story about the turbulent economic conditions we’re facing. And that means non-profit organizations need to take extraordinary measures to secure and safeguard their sources of funding. This could mean finding new ways to raise money, such as through strategic private donations, corporate sponsorships, or developing a cause marketing campaign.

Recruiting and retaining top talent

As the job market remains competitive across virtually every industry, another challenge facing non-profit organizations is staffing shortages. The non-profit sector can face additional challenges trying to match generous compensation and benefit packages, and it has become increasingly difficult to find and retain qualified staff. Aligning your mission and benefits package or finding alternative perks that could increase staff recruitment and retention are crucial tools in the battle for top talent.

Rapidly changing technologies

Technology seems to be evolving at an impossible pace. Non-profit leaders carefully vet one solution only for a shiny new option with enhanced benefits to crop up next year. In order to be efficient and effective, non-profits need to keep up with the latest technologies, but be strategic in evaluating, investing in, and implementing new solutions. And while this can be a challenge for non-profits with limited resources, a regular review of technologies and internal controls can help highlight potential risks and prevent major headaches when it’s time to make a change.

Cybersecurity threats

As our lives become increasingly interconnected, we share more personal information with the organizations we interact with online. The unfortunate truth is that non-profit organizations are also facing an elevated number of cybersecurity attacks. Hackers are increasingly targeting non-profits, as they know that these organizations often collect and maintain sensitive data, such as donor information, payment data, and bank information. Non-profits must take steps to protect their data from cyberattacks, which can severely impact the overall trajectory of the organization in a sudden way, and result in permanent damage both to operations and reputation.

The shifting world of regulatory compliance

In order to operate effectively, non-profits need to comply with a variety of regulations. This can be a challenge as regulations are complex, and tend to change often, with guidance being spooled out over time and subject to wide interpretation. It is important for non-profit organizations to consult regularly with an advisor who’s well-versed in non-profit legislation and regulation.

A toolkit to help non-profits keep it all in sight

At Barnes Dennig, our team of dedicated non-profit professionals know that these are just some of the biggest threats facing non-profit organizations in 2023 – and into the future.  We understand that non-profit leaders need to address these mounting challenges head-on, while also fulfilling their mission and running the day-to-day business of their organizations.

This is why we’ve come up with a non-profit toolkit to gather and summarize the information needed to address these challenges and more. You can download a free copy of the non-profit toolkit here.

Do you have other questions or challenges facing your organization? Contact one of our non-profit pros  for a free consultation. We’re here to help.


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