Research and recommendations for effective, day-to-day nonprofit practice from ASU faculty, staff, students, and the nonprofit and philanthropic community.
Properly fulfilling a nonprofit’s mission and providing quality services to the community hinges on the staff hired to perform that work. However, Nonprofits can have unique challenges leading to difficulty in recruitment and retention amongst qualified staff, leading to a workforce crisis in the nonprofit sector.
Contributing factors leading to crisis
Being able to provide a competitive compensation package is a leading challenge for nonprofit organizations. The recent phenomenon of the “Great Resignation” has led to a choosier labor pool, with for-profit companies being able to offer higher salaries and strong benefit packages to prospective employees. Nonprofits are left unable to compete with for profit counterparts due to their reliance on outside funding for their operation costs.
Nonprofit workers, specifically those in client facing roles, also have a higher risk factor for burnout and compassion fatigue. Feelings of emotional exhaustion, cynicism, and the inability to accomplish goals are characteristics of burnout caused by chronic workplace stress. Nonprofit workers are also more likely to experience compassion fatigue, which is related specifically to a reduction in empathy, due to the repeated exposure to hard client stories. When staff experience compassion fatigue or burnout, their work ability can be impacted,…
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Whether a school filled with teachers and coaches, a theater company with actors and set designers, or a research organization providing critical information and analysis, the people who provide services, raise funds, and keep the mission going are the single most important component of our organizations. Our people are our programs.
Why talent development is important
Staff turnover and vacancy can have negative impacts on program delivery and on the quality of those programs. According to a 2019 Nonprofit Technology Enterprise Network (NTEN) survey of nonprofit professionals, nearly 90% of respondents felt they were better able to succeed at work because of professional development opportunities, and a similar number reported professional development as a factor in their job search.
“Funds spent on leadership training provide high returns on investment (ROI).” noted Beth Black in a recent Nonprofit Times article. “And this ROI isn’t just fiscal. It’s a great way to increase your mission impact, bring in higher revenues, control costs and provide for greater stability as you build employee loyalty.” Turnover and attrition will take place in any organization. Mitigating that risk by planning for succession at all levels, and creating pathways to grow the skills and leadership capabilities of top performers will have a direct benefit…
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What if I told you that unlocking an untapped resource for your nonprofit that costs little to nothing can transform your mission and amplify your impact? This blog will look into an often-overlooked superpower that can advance your organization in ways you never thought possible- the secret power of social capital. Deep diving into the foundation of social capital, its dimensions, and its hierarchical framework. Revealing how social capital can fuel innovation, cultivate digital and in-person connectivity, and how leadership can unleash this superpower.
The foundation of social capital
Social capital has many definitions, but a universal definition for nonprofit social capital is establishing trust, norms, and networks that can advance organizational mission impact. Social capital comprises three fundamental elements: relationships between individuals and groups, trust within those relationships, and beneficial resources. Nonprofits are a perfect match for social capital since they are driven by the cycle of reciprocity: support and collaboration between the organization and the community.
Hierarchical framework
Bixler & Springer (2018) illustrate the hierarchical framework of healthy nonprofits as a pyramid with three layers, each dependent on the other. It starts with a strong base as a foundation of organizational capacity. The next layer is social capital, which becomes the power to…
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Nonprofit organizations thrive on the vision of the organization and leaders who fulfill the mission, driving lasting impact. Nonprofits need to harness the energy of the entire multigenerational workforce to ensure sustainability and ultimate fulfillment of the organizational mission- including Generation Z. Gen Z is poised to redefine nonprofit leadership with their unique values, perspectives, experiences, and skill sets. But how can nonprofits effectively engage this unique generation to create empowered leaders?
The rise of the Gen Z workforce
Generation Z represents individuals born between 1997 and 2012, a significant portion of today’s workforce. This generation is considered to be digital natives, growing up surrounded by a changing digital landscape influenced by social media and instant access to information. Gen Z has been further shaped by the life altering events that caused societal shifts like 9/11 and COVID-19. This generation is suited for nonprofit work with a heightened interest in social change and community impact through their values of diversity, creativity, and authenticity. Gen Z’s approach to work is driven by innovation, finding their purpose, and creating impact. They prioritize jobs that align with their personal values specific causes such as climate action, racial equity, and mental health resonate deeply with Gen Z. Their interest in meaningful work provides nonprofits with a unique opportunity to engage this generation to…
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Nonprofit organizations, and in turn, their staff, often feel crushed by the weight of unreasonable expectations. These expectations come from the donors, government contracts, and within the organizations themselves. Unreasonable expectations can lead to staff turnover, which leads to a loss in revenue for a nonprofit organization.
Let’s explore what these expectations look like as well as how to attempt to alleviate that pressure on staff.
The overhead myth and the nonprofit starvation cycle
Overhead refers to costs to the organization that are not specific to programming or service delivery. This includes payment for office space, salaries of non-programmatic employees, and fundraising costs. If your nonprofit occupies a building, you have to pay for electricity, heat, and water. Unless previously agreed upon, you have to pay a salary to your CEO, CFO, and Human Resources staff. You have to pay for office supplies. If you plan on doing any serious fundraising, you have to pay to print off fliers and mailers.
The nonprofit starvation cycle comes into play with charity watchdog sites who rate nonprofits based on the percentage of revenue they spend on overhead as opposed to their total revenue. For example, a nonprofit reports a 6% overhead expense rate. This will attract donors who look upon nonprofits with a higher overhead percentage as inefficient. And that nonprofit with a 6%…
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