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The competition challenge is potentially problematic for nonprofit organizations because they are losing large market shares to for-profit firms (Calhoun & Damm, 2015). These firms have introduced new things that have attracted many like in the field of charitable fundraising. The for-profit has also shifted their focus of public funding to the consumer-side subsidies considering that they have a natural advantage in that area. The technology challenge important for the nonprofit organization to scrutinize because their operations need to incorporate the new technologies. However, this is a challenge for these organizations because of the enormous financial implications they will encounter in making the technological shifts. Moreover, fundamental philosophical issues pose challenges for the organizations because they affect their mission and operations. Lastly, the human resource challenge arises as it relates to accountability and liability. Therefore, the human resource risk should be investigated because it affects the lower and the upper management staff of these organizations (Jaskyte & Holland, 2015).
The less relevant issues are the legitimacy challenge and the managerial effectiveness issues because they are not core issues to the operations of nonprofit organizations. Legitimacy challenge is less relevant because organizations that have been serving communities for longer periods understand their mission well. Therefore, the legitimacy challenge only applies to the recently formed ones. The parameter is irrelevant when it comes to questioning the credibility of nonprofit organizations. Moreover, the effectiveness challenge is less relevant because nonprofits focus on investing their time, resources, and knowledge measurable results. Such metrics are important because they will look at issues about their smooth running. Furthermore, they build in an environment that is accountable and thus, has managed to help the nonprofits to deliver positive results regarding community building in areas where government services are lacking or overwhelmed (Salamon, 2015).
References
Calhoun, N., & Damm, D. (2015). One sector more poised for the future than either business or government. Forbes. Retrieved on 18 Sept. 2017 from www.forbes.com/sites/singularity/2015/02/09/stealth-rally-in-the-nonprofit-sector/
Jaskyte, K., & Holland, T. (2015). Nonprofit boards: Challenges and opportunities. Human Service Organizations: Management, Leadership & Governance, 39(3), 163–166.
Salamon, L. M. (2015). The resilient sector: The future of nonprofit America. Retrieved on 18 Sept. 2017 from www.brookings.edu/wp-content/uploads/2016/07/thestateofnonprofitamerica2ndedition_chapter.pdf
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