What Are the Greatest Challenges Facing Nonprofits Today?

I told my co-author Matt Craig that it was pretty funny that we’ve both been doing a number of podcasts – considering I didn’t know what a podcast was a year ago.

Host Rob Harter of The Nonprofit Leadership Podcast and I had an interesting conversation a few weeks ago about some of the more exciting developments in the world of nonprofits that provide me with a sense of optimism once we “turn the corner” in the pandemic. These include:

  • the Tusnami of new sources of capital being directed to the sector by investors who want to obtain a “double return” – social and economic – on their investments, which is estimated to be over 1/3 of investing worldwide – and growing quickly
  • the reset of the “golden rule” among funders and grantees – from “those that have the gold rule” to “we’re in this together.” Developments such as Trust Based Grantmaking, multi-year and unrestricted capacity grants, and the increasing demise of the “Overhead Myth” are enabling nonprofits and their funders to build bridges to reward sustainable organizations – instead of “piers” that end when the grants run out
  • the plethora of new organizational structures – like Certified “B” corps, social enterprises and other hybrids, and the deployment of social entrepreneurship to tackle our society’s most difficult and swampy problems
  • the Covid driven re-examination of all of their business practices by nonprofits and their boards. Along with discontinuing historical activities that no longer make sense, they are developing new concepts that will survive Covid, and, equally important, creating enhanced teamwork and deeper knowledge of the organization among their staffs and their boards.

Here is a link to the podcast and the Nonprofit Leadership site, which is a great resource:


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