What would be a sign of failure for a nonprofit?

The inability to meet financial obligations or serve its mission is a clear indicator of failure for a nonprofit organization. Financial stability is critical for nonprofits as it directly affects their capacity to deliver services, fund programs, and achieve their mission goals. When a nonprofit struggles to manage its finances, it may lead to a lack of resources necessary to operate effectively, thereby undermining its ability to serve the community or fulfill its core purpose. This not only compromises the organization's immediate functions but can also erode trust and confidence among stakeholders, including donors, volunteers, and the communities served. Therefore, ongoing financial health and the capability to maintain service delivery are essential for a nonprofit’s sustainability and overall success.