Over the years the demand of fundraising has been increasing exponentially. From natural disasters resulting from climate change and global warming to immigration and refugee crisis and war victims around the world to health and educational crisis in the counter, the demand for charitable funds has been rising consistently in the United States. Unfortunately, the fiscal tightness of the government budgets is making it difficult for the government to meet the demand and needs of the public goods. This is due to the consistent negative balance of payments and budget deficits. The government can set aside lesser funds for public funding. As a result, the pressures of charitable funds have been primarily shifted onto the nonprofit entities.
According to the Chronicles of Philanthropy, the government of United States has been consistently limiting the tax privileges on charitable funds for nonprofits. This is being done to provide support to the tighter budgets and deficits and depleting resources. As a result, many nonprofits do not find it worth to remain nonprofit and prefer closing the non-profit entities. This acts as a trickle-down effect and widens the gap between demand and supply of fundraising and creates an added pressure on the government, resulting in a more recessionary situation.
It must be noted that that with the government cutting down on public spending, nonprofit entities take care of a major chunk of community needs. These nonprofit entities survive on very stringent resources. Limiting tax privileges for nonprofits will result in an additional blow to the already restricted resources and will make it difficult for the nonprofits to function optimally. The demand and growth of the overall nonprofit sector have a fairly positive outlook given that the volume of donors is on the rising and nonprofit leaders are being pulled in to fill the gaps created by the government withdrawing its spending. However, the further cut down of their resources such as tax subsidies make it difficult for them to run their finances smoothly. It might further have an impact on the employee motivation if they have to meet their objectives with inadequate resources.
Given the current circumstances under which most nonprofit entities are operating, leveraging technology to run the entity will help optimizing operations to a great extent. Incorporating technology in the non-profit operations will help pool in and attract potential donors from all avenues and will assist in hassle-free transactions resulting in greater and quicker revenue generation. It further helps in cutting down financial and administrative costs as much administrative, marketing and human resource areas can be taken care off by the technology. The reduced costs and increased revenue generation help to reduce the pressure on the organization’s resources, and more funds can be made available to meet the non profit leader’s objectives. An optimally functioning non-profit entity will further attract donor and encourage them to donate more if they see more resources are being contributed to the community’s well being.