"insurmountable challenges." That rules out funding and community engagement, since both of those can be improved. The problem must have been systemic...
A lack of funding that the board does not see a viable avenue to correct in a timeframe relevant to continuing operations is an insurmountable challenge.
Even if they could continue doing Y which was what they did years ago before they started doing more things.
But sometimes the organization has gotten too big to reliably downsize again.