Capacity building is an ongoing problem experienced by NPOs for a number of reasons. Most rely on external funding (government funds, grants from charitable foundations, direct donations) to maintain their operations and changes in these sources of revenue may influence the reliability or predictability with which the organization can hire and retain staff, sustain facilities, create programs, or maintain tax-exempt status. For example, a university that sells research to for-profit companies may have tax exemption problems. In addition, unreliable funding, long hours and low pay can result in employee retention problems. During 2009, the US government acknowledged this critical need by the inclusion of the Nonprofit Capacity Building Program in the Serve America Act. Further efforts to quantify the scope of the sector and propose policy solutions for community benefit were included in the Nonprofit Sector and Community Solutions Act, proposed during 2010. COUNT 5
QSN1 What are ways that a charitable foundation receives money for it's cause? ANS1 government funds, grants from charitable foundations, direct donations QSN2 What type of funding do charitable organizations typically rely on? ANS2 external funding QSN3 What are some problems that affect employee retention and volunteers? ANS3 unreliable funding, long hours and low pay QSN4 What legislation did the US introduce to try and help the NPOs? ANS4 Nonprofit Capacity Building Program QSN5 When was the Nonprofit Sector and Community Solutions Act adopted? ANS5 2010