Issues
For nonprofits to become thriving, sustainable, hyper mission-focused organizations, we need to address these topics.
Revenue Mix Fragility
Revenue is just as important in a nonprofit as a for-profit business. However, the same risk we flag immediately in for-profits often goes unnoticed in nonprofits.
An example:
In an early-stage for-profit, having five customers would be a red flag. It signals concentration risk and triggers an urgent push to diversify.
In nonprofits, having five annual funding sources is often considered stable (even healthy).
But the risk is the same: Lose one funder, contract, or revenue line, and the organization can be thrown into crisis.
The problem isn’t philanthropy, it’s revenue vision. Nonprofit revenue mix is too often seen as static, not strategic.
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The Nonprofit Is A BUSINESS perspective: Nonprofit revenue mixes deserve the same intentional design, diversification, and risk management we expect in even the earliest for-profit ventures because impact and sustainability depend on it.
Nonprofit Business Health
Many nonprofits measure success by how busy they are, not by how well the organization actually functions.
Programs continue because they’ve always existed.
Processes stay manual because “that’s how we’ve done it.”
Hard decisions get delayed because they feel personal (not operational).
But activity is not the same as effectiveness.
Systems are often fragmented, undocumented, or overly reliant on institutional memory.
Operational inefficiencies quietly drain time, money, and staff energy.
Programs are rarely assessed against mission impact, and more often against interest or tradition.
The result: organizations work harder every year without becoming stronger.
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The Nonprofit Is A BUSINESS perspective: Healthy nonprofits must regularly examine systems, programs, and operations, keeping what drives impact and letting go of what no longer serves the mission.
Leadership 501(c)3 Skills Gaps
Many nonprofit leaders step into their roles because of commitment, longevity, and deep belief in the mission.
They know the cause. They know the community. They know the work. But they are rarely trained in how to lead the business of a nonprofit.
In the for-profit world, leadership often come with intentional upskilling (executive coaching, management training, or even an MBA). In nonprofits, that same investment is far less common.
The result is a real skills gap.
Leaders are expected to be experts in nonprofit finances, systems, and strategy without formal preparation.
Decision-making can be reactive and short-sighted instead of strategic and rooted in sustainability.
Burnout increases as leaders carry responsibilities they were never trained to hold.
In theory, the Board of Directors help balance this through governance and oversight but they have their own challenges. (See next section.)
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The Nonprofit Is A BUSINESS perspective: Mission commitment matters, but leadership capacity matters equally to meet the 501(c)3 dual bottom lines: strong finances and mission impact.
Board of Directors Types & Challenges
Most nonprofit boards are filled with committed people. But commitment without clarity often leads to confusion, misalignment, and frustration.
In practice, boards often include a mix of members who show up in very different ways:
The Resume Builder: This is the person who loves the idea of being “on a board.” It sounds prestigious at networking events but their commitment is limited.
The Corporate Appointee: This person was told by their employers that they needed to serve on a board. They’re successful and capable people, but they often have no idea what to do once they get there.
The Mission Driven: These are the ones whose hearts are all in. They love the mission, they believe in the cause, and they genuinely want to help.
Plus many boards have never clearly defined what type of board they are meant to be: working, governing, fundraising, public-facing, or some combination. Without that clarity, frustration grows on both sides: board members feel unsure while executives feel unsupported or over-directed.
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The Nonprofit Is A BUSINESS perspective: Strong boards are not accidental. They are intentionally designed with clear roles, shared expectations, and alignment between governance and leadership.