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Nonprofits face challenges scaling student success efforts due to limited data and funding

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Nonprofits face challenges scaling student success efforts due to limited data and funding

Student success has become a central focus within higher education institutions across the United States, aiming to significantly reduce dropout rates and improve graduation outcomes. While colleges and universities increasingly prioritize internal programs, nonprofit organizations also play an essential role, providing vital resources, financial aid guidance, personalized coaching, and comprehensive student support services.

Despite their pivotal contributions, nonprofits encounter substantial hurdles in scaling their efforts effectively. According to a recent joint study by the National College Attainment Network (NCAN) and America Forward, nonprofits are struggling primarily due to two significant obstacles: inadequate access to crucial data and limited public funding.

Barriers preventing effective student support

The research highlights that although nonprofit organizations have pioneered numerous evidence-based interventions to boost college success rates, these initiatives have failed to grow rapidly enough. The report notes that promising models often stagnate due to insufficient resources needed for refining strategies, adapting solutions to diverse student needs, and rigorously testing and implementing successful approaches.

The most frequent barriers students face during their college journey include high educational costs (71%), substantial living expenses (55%), and significant mental health challenges (56%). Post-graduation barriers further compound student struggles, notably the absence of critical social capital (85%), inadequate career navigation support (75%), and limited availability of internship opportunities (65%).

Additionally, the geographical distribution of support programs disproportionately favors urban areas, specifically California, Massachusetts, New York, North Carolina, and Texas. This uneven distribution underscores a glaring gap in providing adequate in-person support to students residing in rural communities, where resources and direct assistance are typically more limited.

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Data sharing and collaboration with higher education institutions

Effective partnerships between nonprofit organizations and educational institutions are essential to enhancing student success. However, data-sharing barriers significantly hinder these collaborations. Approximately 74% of nonprofit organizations primarily rely on their own administrative data to assess impact, while only 39% report successfully accessing critical academic data directly from college partners.

Furthermore, nonprofit organizations lack access to essential external data sources. Only 24% utilize relevant workforce data, while a mere 9% access data related to public benefits or basic-needs insecurities among students. These limitations severely constrain their ability to accurately measure program outcomes and refine interventions effectively.

Challenges with funding and organizational capacity

Financial stability remains a major challenge preventing nonprofit organizations from effectively scaling their programs. While 95% of nonprofits receive philanthropic funding and half benefit from corporate support, only about 43% receive any form of public funding. Specifically, only one in five organizations secure funds directly from educational institutions or K-12 school districts.

Key reasons cited for the lack of public funding include limited awareness of grant opportunities (44%), insufficient internal capacity to manage application processes (43%), and inadequate capabilities for detailed financial reporting (43%). These barriers emphasize the critical need for enhanced support systems and streamlined processes for accessing public-sector grants and financial assistance.

Nonprofits also grapple with other organizational issues that hinder growth, notably challenges in hiring and retaining qualified staff (55%), inadequate organizational infrastructure (35%), and difficulties attracting and maintaining active student participation (30%). These operational challenges further highlight the complexity involved in successfully scaling and sustaining effective student support programs.

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Policy recommendations for enhancing nonprofit effectiveness

In response to these identified challenges, the authors of the NCAN and America Forward report recommend significant policy actions at federal, state, and local levels. Policymakers are encouraged to substantially increase investment in proven student support programs. Specifically, at the federal level, increased funding for initiatives such as the Postsecondary Student Success Grants (PSSG) is strongly recommended. Notably, only one of the 22 current PSSG recipients is a nonprofit, indicating a significant opportunity for expanded nonprofit engagement.

The report further suggests strengthening existing programs like TRIO, GEAR UP, and AmeriCorps, which have demonstrated effectiveness in addressing critical barriers to college success. Moreover, policymakers should actively work towards increasing nonprofit accessibility to federal funding opportunities by reducing bureaucratic obstacles and streamlining application processes.

Building stronger infrastructure for student success

To maximize impact, nonprofits require enhanced support to strengthen their internal capabilities. The report highlights the necessity of robust evaluation frameworks, dedicated research support, and access to comprehensive data systems. Additionally, fostering vibrant communities of practice could facilitate greater collaboration among organizations, promoting shared learning and continuous improvement.

Ultimately, addressing these critical barriers—data access, funding sustainability, and organizational capacity—will significantly amplify nonprofit contributions to student success, ensuring more students can complete their degrees and achieve lasting career outcomes. These targeted policy initiatives and structural enhancements represent essential steps toward achieving widespread, sustainable improvements in student success nationwide.

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