Examine Identifies Hole Between Grant Availability, Nonprofits’ Wants

BryteBridge, a service supplier to the nonprofit group, launched a brand new report that sheds mild on the challenges dealing with small and rising nonprofits. Figuring out that roughly 30% of nonprofits fail inside the first ten years of operation, based on the Nationwide Middle on Charitable Statistics, BryteBridge got down to determine and perceive the largest threats to nonprofit sustainability.

The report, Rising Pains: Overcoming the Challenges that Hold Nonprofits from Reaching Sustainability and Development, outcomes from a quantitative survey of 261 nonprofit employees members and volunteers from organizations established between 2014 and 2024.

In keeping with the survey:

• Donor contributions energy nonprofits: Greater than half (54%) of a nonprofit’s income comes from donors, together with particular person (28%), board (14%) and company (12%) donors. Extra sources of income are basis and authorities grants (22%) and bequests, in-kind donations and program charges (23%).
• Competitors for grants is fierce: 86% of nonprofits intend to pursue authorities and basis grants, however few will likely be awarded an impactful quantity.
• Grants should not a silver bullet for income: On common, it takes two years and 4 months earlier than a nonprofit receives its first grant. Virtually two-thirds of organizations safe between $5,000 and $15,000 in grants on common and obtain two to 4 grants per 12 months. Additional, most nonprofits (41%) should not prepared to use for, obtain, and handle grant funding.

The survey outcomes underscore the numerous hurdles nonprofits face in securing grant funding, highlighting why organizations should depend on a various mixture of income streams to remain sustainable. Whereas grant funding is an often-sought useful resource within the nonprofit sector, it can’t be the only real focus of nonprofit fundraising. The truth is, nonprofits of their first three years of operation could also be ineligible for many grants. Moreover, there’s the executive burden of making use of for grants and restricted assets to rent grant writers (both internally or externally) that detract from a nonprofit’s capacity to generate income from their major fundraising supply: particular person donors.

“Nonprofits across the nation fill vital gaps that exist inside our social security nets,” mentioned Brian Davis, President of BryteBridge. “Whereas they face ongoing challenges like sustainable funding, authorized and compliance complexities, and the demand for data-driven strategic planning, these hurdles are alternatives for progress and innovation. By addressing these points, nonprofits can proceed to boost their influence and higher serve the communities that depend on them.”

The report uncovered three key areas the place nonprofits search probably the most assist over time:

• Fundraising: 51% of nonprofits reported receiving assist with fundraising of their first 12 months, with 37% of nonprofits reporting that it was the realm during which they wanted probably the most help. Additional, 43% foresee needing fundraising help in subsequent years.
• Authorized and Compliance: 54% of nonprofits obtained authorized and compliance assist in their first 12 months, with 32% of nonprofits reporting that they may have used assist throughout their first 12 months. Nevertheless, 42% report they foresee needing help in these areas in subsequent years.
• Technique Help: 42% of nonprofits felt they may have used assist with technique of their first 12 months, with solely 38% receiving that assist in the primary 12 months. That want ticks up barely to 43% reporting that they foresee the necessity for technique help in subsequent years.

BryteBridge final surveyed nonprofits in 2020, on the peak of the COVID pandemic, which confirmed compliance, staffing, monetary well being, and fundraising because the 4 foremost challenges dealing with small and rising nonprofits. The 2024 survey confirmed a lot of the identical, with fundraising and compliance rising in significance.

• In 2020, 37% of nonprofits had been involved about fundraising shifting ahead, in comparison with 43% indicating they may use fundraising help in 2024.
• In 2020, 23% of nonprofits indicated that assist was wanted in authorized and compliance issues throughout their first 12 months, whereas 32% indicated they may have used help in authorized and compliance issues of their first 12 months in 2024.
• In 2020, 41% of nonprofits indicated that assist was wanted of their first 12 months for technique, with 42% indicating they may have used the identical assist in their first 12 months in 2024.

“It’s clear that nonprofits want extra help to thrive,” added Davis. “At BryteBridge, we’re dedicated to empowering nonprofit leaders and their groups by offering assets that assist them preserve their deal with positively impacting their communities.”

Obtain the “Rising Pains: Overcoming the Challenges that Hold Nonprofits from Reaching Sustainability and Development” report right here.

Supply: BryteBridge

The previous press launch was supplied by an organization unaffiliated with NonProfit PRO. The views expressed inside don’t immediately mirror the ideas or opinions of the employees of NonProfit PRO.