This issue deals with the funding for charities and shelters as well as their strategies to stay successful and deal with reduced funding. Multiple sources of revenue from individuals, foundations, corporations, taxpayer dollars and government funding, pushes nonprofits to face daily obstacles when managing funding. This issue focuses on regulation and accountability for nonprofits, along with charities and shelters’ strategic campaigns.

Multiple streams of income mean more stability for nonprofits according to Joanne Fritz, a nonprofit expert who obtained a Ph.D. working for more than 30 years in the nonprofit world. The economy, “donor fatigue,” and natural disasters around the world are key factors in the amount of funding nonprofits receive. This plays a major part in the current state of the issue. After the recent hurricanes, shootings and political chaos, people have a hard time focusing on the ongoing need for funding and help, no matter how worthy the nonprofit.

Fees for services and sale of products provide valuable funding for charitable organizations. These sources of revenue contributed almost half of the total funding for public charities and nonprofits in 2013 (47.5%), according to the National Center for Charitable Statistics. The next largest source of funding is through government contracts and grants. Nonprofits encounter obstacles from the federal government as federal budget issues led to budget cuts and reduced funding for non-profits, forcing the subsequent recovery and strategic planning of nonprofits to maintain comfortable incomes.

There are various reasons why someone should donate to charity; scientific proof shows the importance of funding for nonprofits. Opponents of government funding and taxpayer dollars going to nonprofits have concerns about how charities and shelters are considered tax-exempt organizations. Corruption scandals and political misuse of tax-exempt privileges have brought scrutiny of how nonprofits operate and earn their tax-privileged classifications. As nonprofit scandals continue, funding for these organizations becomes a bigger obstacle. In a recent 2017 article by the Nonprofit Quarterly, Bank of America executive and accomplices were indicted with embezzlement charges, allegedly funneling $2.7 million from the company illegally in a five-year plan involving Boston- and Atlanta-area nonprofits. Scandals like this occur frequently, as these individuals can take advantage of nonprofits, preying on the power imbalance between companies like Bank of America and the small nonprofits they engage. Although corruption scandals happen within a small percentage of nonprofits, this leads to increased regulation, reduced funding, and an increased negative outlook on giving money to nonprofits.