Nonprofits encounter unique challenges that differ from those faced by for-profit businesses. One significant challenge is funding. While for-profit businesses can attract investors looking for financial returns, nonprofits rely heavily on donations, grants, and other forms of funding that do not promise a financial return to the donor. This makes it crucial for nonprofits to develop strong fundraising strategies and build relationships with donors. Another challenge is measuring impact. Unlike profits, which can be easily quantified, the social impact of a nonprofit's work can be more challenging to measure. Nonprofits must develop robust metrics and evaluation methods to demonstrate their effectiveness and attract continued support.