To research the reasons why people would choose not to fund and/or donate non-profit organizations.
Reasons Non-Profit Organization are denied donations by people:
1. Lack of Transparency:
Donors tend to avoid donating to a non-profit if they don't know how their money is being used.
To avoid this, they need to be kept engaged with the non-profit rather than just donating money. They should be informed about what goals their donations have helped achieving and how.
People tend to research the charity they are donating to understand how they use their money. For example what percentage of it is utilized for the benefit of people/nature/animals. Charity watchdogs rate charities according to this percentage, and those that use more than 75% of donations for effective good, are given the highest rating.
For example, CharityWatch gave the Disabled Veterans National Foundation an F rating as it spent only 4 percent on its programs. On the other hand, the National Military Family Association received an A as it spent 82 percent for the benefit of Miliary families.
3. Lack of Compelling causes: Sometimes people may also feel that the causes the charity is working for is not worth their donations.
People prefer donating to their local communities and domestic charities. "Ninety-five percent of the $240 billion that individuals in the United States give to charities annually goes to domestic non-profits while only 5% is donated internationally."
People think they need to save more money for themselves and their families. They might as well think their donations would be too small to make a difference.
They might think differently about poverty. For example, poverty can't be solved, it's not the problem, its a symptom, governments are supposed to solve it, it might make developing nations more dependent on foreign funding, etc.
Internal Factors of Non-Profit Organizations:
According to the National Association of Nonprofit Organizations & Executives (NANOE), some internal reasons behind failure of non-profit organizations are:
Empty optimism: Leaders fail to accurately calculate the amount of support that would be available, or the alliances and partnerships their organizations need to support their launch.
Poor organizational development: The organization might lack core values, and hence, internal trust. The leaders might prefer the "do as I say" approach and might find it difficult to transfer power and share the limelight with an empowered team.