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Financial management in nonprofits: challenges
Why is financial management for nonprofits challenging? Watch Georg von Schnurbein explain the challenges that nonprofits have to face.
Why do so many nonprofits have financial difficulties? It is not only because of the scarcity of funds, but also because of some constant challenges they face.
A social initiative is not about making money, but it is nothing without it either. Because of the different goals of nonprofits, financial management faces some constant challenges:
- there are too many options to raise funds,
- there is a lack of numbers,
- there is a lack of knowledge,
- there is a danger of mission drift,
- and a focus on year-to-year reporting.
