The Real Costs of Running Nonprofits: Capacity Building Challenges of 2025
We have had a busy spring, filled with amazing conversations with leaders of peer organizations. There are so many organizations that are going above and beyond the call of duty to do not just necessary but revolutionary work. But behind every ribbon-cutting ceremony or community ground-breaking lies an often invisible reality—the immense cost and complexity nonprofits shoulder to bring their missions to life.
Our mission is rooted in the idea that everyone deserves access to safe, stable, and affordable housing. Although our challenges differ from those of other nonprofits in Dallas, we share common goals related to capacity building and scaling for similar reasons.
Turnover and Talent
In nonprofit work, burnout is real. Where resources are limited and regulations are frequently changing, systemic hurdles in applying for grants and seeking funding can lead to higher turnover. Recruiting, training, and finding talent that grasps the institutional knowledge required for nonprofit work can be challenging. Staff changes are not just personnel shifts but a loss of time, trust, and momentum.
Administrative and Policy Complexity
Nonprofits working in affordable housing navigate a complex web of regulations. Zoning laws, permitting processes, and changing municipal or state regulations can delay or derail projects entirely. Administrative burdens drain time and energy that could otherwise be spent serving our communities. Well-intentioned and protective policies can become roadblocks without clear communication, consistent leadership, and coordinated execution.
Inconsistent Funding
Access to funding remains one of the most significant challenges. Grant cycles are competitive and limited in scope. Philanthropic dollars are often earmarked for programs, not operations. Public funding is frequently tied to rigid compliance metrics and fluctuating politics. It is complicated to deliver long-term solutions on short-term budgets.
Reliable Partners
Managers, marketers, grant writers, designers, and executives are essential for nonprofit work. Finding talent and retaining talent is difficult, and finding partners that are also affordable and committed to community-first values is not easy. Many costs are rising from the price of goods to labor. Where budgets are often to the dime, having partners that deliver subpar work can be a threat to the foundation of nonprofit operations.
We Believe It's Worth It
Communities, activists, and nonprofits continue to show up not because it is easy or because every day is a reward, but because the stakes are too high to walk away. The people who persevere through policy complexity, advocate for better funding, build trusted partnerships, and fight for justice are some of the toughest you will find. Supporting your community means supporting the nonprofits behind it, from advocating for flexible funding, recognizing the full cost of nonprofit work, and helping develop systems that work with, not against, change.
The burden, but also the IMPACT, is real. Equitable housing is a long game that helps people build generational wealth. We are looking to address generations of displacement, disinvestment, and discrimination. This requires deep community engagement, culturally competent design, and long-term support structures, and these do not fit neatly into simple policies and timelines. With the right resources and partnerships, we can scale and build homes that help generational wealth grow for all. Learn how you can get involved.