Showcase of Undergraduate Research and Creative Endeavors (SOURCE)

Why is it Difficult for Grassroots NPOs to Receive Funding?

Nonprofit organizations (NPOs) are formed to improve or maintain conditions in society by providing support and resources for the greater community. NPOs can tackle a wide variety of issues such as poverty, environmental impact on a population, or health disparities. Nonprofits have played an increasing role in advocating for disadvantaged people. But in order for an NPO to survive, they need substantial funding. Though many high-profile international nonprofit organizations are able to thrive, unfortunately many local NPOs will struggle to survive. This leads to the question, why is it so difficult for local grassroots NPOs to raise funds? Is there a reason why some local NPOs have greater fundraising capacity? This paper examines these concerns through case studies of local nonprofits in Charlotte and surrounding areas. Through the comparison of case studies of local nonprofits, this study hypothesizes and finds initial supporting evidence that religious-backed organizations are better able to obtain necessary funds compared to secular organizations. This study also explores how race challenges the ability of NPOs to raise funds.