Behind the Scenes of Running a Nonprofit

While the public may recognize nonprofits’ inspiring missions and enjoy their positive community impact, they often don’t see that the daily inner workings of running a nonprofit are demanding and complex. From balancing budgets and juggling grant deadlines to managing staff and volunteers, running a nonprofit can be as challenging as it is rewarding.

Nonprofits, often the heartbeat of communities, are also businesses — they have to raise capital for office space, staffing, marketing and visibility. They need to manage IRS reporting, develop HR policies and take care of other organizational documents along with ensuring their financial health is stable. They must decide on the right mission statement and vision for the organization, narrow down who they serve and who they don’t, fundraise and collaborate with other nonprofits for continuation of services.

The challenges facing nonprofits, particularly small to mid-size nonprofits, are many and the biggest one is no surprise — raising funds for operating costs and programs. With grants and donations being unpredictable, it’s difficult to achieve financial stability and plan ahead. According to Independent Sector’s 2024 Health of the U.S. Nonprofit Sector: Annual Review, the number of donors decreased 3.4% in 2023 and 22% of nonprofit workers struggled to afford basic necessities.

In Maryland, it’s no different. “There’s a perpetual sense of scarcity in what nonprofits need to advance their mission and how they can access their resources to do it,” said Heather Iliff, Maryland Nonprofits president and CEO. “And this is primarily related to small and mid-sized nonprofits that are community-led, community accountable. They have good, strong relationships in the community and expertise to offer, but often don’t have connections to big money and big donors. The vast majority of the funding is going to the largest nonprofits.”

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Source: Capital Gazette