Certified Nonprofit Professional Practice Exam

What is a major risk for nonprofits that accept funding without evaluating attached strings?

1. Loss of valuable volunteers

2. Shift in organizational mission and values

3. Decrease in community support

4. Inability to raise additional funds

The correct answer is: Shift in organizational mission and values

Accepting funding without thoroughly evaluating the attached strings can lead to a significant risk for nonprofits, specifically around the potential for a shift in organizational mission and values. When a nonprofit receives grants or donations with specific stipulations or requirements, it may find itself compelled to alter its programs, services, or even its fundamental mission to align with the interests of the funders. This can dilute the organization’s original goals and values, which are often designed to serve the community or address specific social issues. Such a shift can have profound implications. The nonprofit might prioritize funder mandates over community needs, potentially leading to reduced effectiveness and mission drift. For instance, if a nonprofit specializing in environmental conservation receives funding that emphasizes economic development, it might inadvertently divert resources toward initiatives that prioritize economic growth at the expense of ecological integrity. Furthermore, the compromise of core values can damage trust with stakeholders, including volunteers, beneficiaries, and community members who expect the organization to adhere to its original mission. This disconnect can result in decreased support from the community and a loss of valuable volunteers who may feel that the organization no longer aligns with their values or the impact they wish to achieve. This understanding highlights the importance of careful consideration when engaging with funding sources, ensuring that any financial support aligns with the