Challenges

The first problem is the loss of funding due to a movement called the Tea Party,
which was based on the idea that the government should reduce funding for
services produced by contractors. NPOs could lose access to government funding.
The second problem is that government funding is increasingly constrained.
NPOs faced the fact that government contracts did not fully cover the cost of
services. And the final challenge is the increased competition that the sector
faces from commercial hybrid social enterprises. In the arena of market failures,
NPOs were the best solution.Increasingly, private-sector organizations have
become key players in domains in which government funding can be used to
make providing services profitable.

Opportunities
The first opportunity is that baby boomer generation gets older, surely, they
want to continue to live in their homes as long as possible, will require some
medical, all very likely provided by the nonprofit sector.
The second opportunity relate to the millennials generation; I mean this
generation increasingly need to have social impact as a necessary part of any
work activity and nonprofit sector can provide it.
The last opportunity is that government may not have the funding or the will to
support services previously considered public, nonprofits remain uniquely
positioned to allow citizens to maximize their preferences.