The Nonprofit Sector : A Challenge For Nonprofit Management Essay

2371 WordsNov 21, 201610 Pages
The nonprofit sector faces many challenges that make it more difficult to measure its financial performance. Young (2007) states that the survival of nonprofit businesses depends upon receiving financial funding from outside donors such as donations from charities, government contracts, endowments et cetera, and the necessity for having several different revenue sources is a challenge for nonprofit management. In addition, he points out that securing capital for operating is also much different than in the traditional business world. Fortunately, scholars have provided tools and information that will help nonprofits manage and measure their unique financial performance so they may make informed decisions and guide their organizations to sustainability (Young, 2007). In addition to the significant financial challenges in obtaining funding and securing capital, the reputational risk is much greater for nonprofits than for-profit businesses (Jackson, 2008). He suggests that cases of fraud or misuse of funding can be especially damaging for nonprofits. Because nonprofit organizations are formed to provide a service to the community and are reliant upon outside donors to serve their mission, they must take certain precautions to safeguard their assets and maintain their relationships with the community. The purpose of this paper is to evaluate the financial health of The Assistance League of Bend. Each nonprofit organization establishes its own mission statement and vision for

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