Sustainability:  Hot Nonprofit Governance Issue

By: Eugene Fram                  Free Digital Image

In the next four years, nonprofit boards will face exceptional challenges affecting long-term financial and operational sustainability. It is likely that governmental grants will substantially decline. Business/individual donor gifts can be reduced should the economy teeter towards recession or the tax code changes in an unfriendly way. But, as usual, demand for nonprofit services will increase substantially.

Based on national survey data, Alice Korngold, highly regarded nonprofit consultant, concludes that these issues are driving the problems.

• Demand for services has increased every year since 2008.
• 50% of nonprofit survey respondents are unable to satisfy demand.
• Half of the organizations surveyed only have three months of cash readily available.
• Government contracts don’t provide full costs for programs. *

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