---
title: The Real Reason Nonprofits Struggle to Grow
description: Nonprofit funding shortages are NOT about a shortage of money, says Donald Summers. It is often about structure and systems. See what is holding you back!
---

[Principle Impact: Maximize Performance with Principles for Nonprofit Leaders](https://extendedimpact.com/en/principle-impact)

# [The Real Reason Nonprofits Struggle to Grow](https://extendedimpact.com/en/principle-impact/the-real-reason-nonprofits-struggle-to-grow)

 Written by [Don Stephenson](https://extendedimpact.com/en/principle-impact/author/don-stephenson) | Apr 9, 2026 11:46:45 PM

Let’s start with a statement that might feel a little uncomfortable.

**Nonprofit funding challenges are not primarily about a lack of money.**

Yes, economic conditions matter. Donor trends matter. Competition matters.

But if you are being honest, most leaders and their organizations that feel “stuck,” are dealing with something deeper, something structural.

I recently came across a thoughtful LinkedIn post by Donald Summers of Altruist Partners. I’ve been following Donald’s teachings for years. He always delivers data-based insights.

He outlines five critical areas that limit nonprofit organizational growth.

If you’re a nonprofit leader trying to break through a plateau, his framework built upon 20+ years of working with nonprofits, is well worth your attention.

 

**The “Boat Anchors” Beneath the Surface**

On the surface, many nonprofits look like they’re doing everything right. Events and programs are running. Fundraising campaigns are active. Staff are working hard.

*But what is underneath the surface*? There are often hidden “boat anchors” or structural weaknesses that slow everything down.

**These anchors typically fall into five key areas**.

**1. People: Your Greatest Asset… and Your Biggest Risk**

Every nonprofit leader knows this instinctively: your mission is only as strong as your people.

But here’s the reality many organizations face:

- Burnout is high
- Turnover is constant
- Skill gaps go unaddressed
- Having the right people in the right seats

You can’t scale impact with an exhausted or under-equipped team.

Growth requires:

- Investing in leadership development
- Clarifying roles and accountability
- Building a culture that retains great talent

For example, if your team is stretched too thin, no new fundraising strategy will fix this underlying problem.

 

**2. Programs: Good Intentions Aren’t Enough**

Passion drives programs - but design and execution determine impact.

Too often, programs:

- Evolve without clear structure
- Lack consistent evaluation
- Aren’t fully resourced

The result: Your case for support will NOT be compelling and you’ll achieve only limited outcomes.

Strong nonprofits treat programs like living systems:

- Clearly defined outcomes
- Measurable impact
- Continuous improvement loops

If your programs aren’t producing clear, demonstrable results, growth will stall - no matter how strong your mission is.

 

**3. Planning: The Missing Link Between Vision and Results**

Many nonprofits either:

- Over-plan (and never execute), or
- Under-plan (and operate reactively)

Neither works.

Effective planning is both focused and flexible. It connects:

- Strategic priorities
- Revenue goals
- Day-to-day decisions

Without this alignment, teams drift, opportunities are missed, and resources get diluted.

Planning isn’t about creating a perfect document. It is about creating clarity and direction that guides everyone’s behavior.

 

**4. Finances: More Than Just “Raising Money”**

Here’s where the myth really breaks down.

Financial challenges are often framed as: “*We just need more funding*.”

But the issue may be:

- Lack of a clear revenue strategy
- Over-reliance on a few funding sources
- Weak financial management systems

Healthy nonprofits don’t just raise money - they manage and design their financial model intentionally.

That means:

- Diversifying revenue streams
- Understanding true program costs
- Aligning funding with strategy

Money flows more easily to organizations that demonstrate clarity, discipline, success, and impact.

 

**5. Operations: Where Strategy Lives or Dies**

Planning is important. But execution is everything.

And this is where many nonprofits struggle the most.

Common operational challenges include:

- Inefficient systems
- Lack of process discipline
- Weak internal communication

These issues don’t always show up in strategy discussions.

But they show up everywhere else:

- Missed deadlines
- Frustrated staff
- Inconsistent results

Strong operations turn good ideas into real outcomes. Without them, even the best strategies fall flat.

 

**So… Where Should You Start?**

The hardest part of all this isn’t understanding the five areas. It is knowing where your organization stands now.

I appreciate the practical approach from Donald Summers. He has created a simple, **10-minute assessment** that helps you evaluate your organization across each of these five dimensions. [Click here](https://lnkd.in/gHwFhAu9).

The assessment is designed to help you:

- Identify hidden gaps
- Benchmark your current state
- Get immediate, customized insights

If you’re serious about growth, it’s worth taking a few minutes to get that clarity.

 

**Final Thought: Growth Is an Inside Job**

It’s tempting to look outward for solutions - find more donors, get bigger grants, implement new fundraising campaigns.

But sustainable growth starts internally, when your:

- People are aligned
- Programs are effective
- Planning is clear
- Finances are strategic
- Operations are strong

**Funding follows function.**

If your organization feels stuck, don’t just ask, “*How do we raise more money*?”

Ask: “*Which of these five critical growth areas is holding us back*?”

The answer you get is where real growth begins.

 

If you’d like to discuss your situation, [click here](https://meetings.hubspot.com/askdons?uuid=28d9e7c1-249a-4cd5-9a33-8ae363a26189).

[View full post](https://extendedimpact.com/en/principle-impact/the-real-reason-nonprofits-struggle-to-grow)

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