The Internal Revenue Service estimates that there are more than 1.5 million organizations in the United States that qualify as tax-exempt under Section 501(c) of the US Tax Code.  That’s a decline of some 22 percent over 2010 levels, and despite a recent increase in applications for some types of tax-exempt entities, it is clear that the challenges facing Nonprofit organizations are intensifying.

• 42% of survey respondents report that they do not have the right mix of financial resources to thrive and be effective in the next 3 years.
• 1 in 4 nonprofits has 30 days or less cash-on-hand.
• Over the next twelve months, 39% plan to change the main ways they raise and spend money.
• 23% will seek funding other than grants or contracts, such as loans or investments.

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Not-For-Profit organizations are usually defined in terms of what they are not - profit-making -- with less attention paid to what they are and how they are evolving in the 21st Century. Yet the role of the NFP as a cornerstone of culture is changing, and will pose unique challenges to managers at every level of the organization in the decades ahead.

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