Research and recommendations for effective, day-to-day nonprofit practice from ASU faculty, staff, students, and the nonprofit and philanthropic community.
Most nonprofit organizations in the U.S. rely on volunteers to provide their critical mission-focused services. These important team members give their time, talents, and resources, unmotivated by financial compensation or contractual obligations. So, what do these volunteers get out of serving? Do they continue to come back, and if so, why?
The answers stem from how volunteer management and key organizational leadership view volunteer retention - the ability to keep volunteers long-term. Simply recruiting volunteers does not always equate to the ability to keep them.
For most nonprofit organizations, volunteers serve in capacities that are vitally important to the organization’s impact. They are often the catalyst that propel a mission from just surviving to robust thriving. The importance of volunteers cannot be underestimated. A volunteer’s significance goes far beyond just saving nonprofits money in wages; they bring experience, knowledge, and lots of passion. Well-managed volunteers provide incredible value, giving organizations the ability to strategically position themselves for continual growth and impact.
Regardless of the number of volunteers, having a thriving team requires intentionality on the part of key leadership to minimize the reasons why volunteers leave. Research has shown that these reasons often fall into four general categories.
- Volunteers feeling overloaded
- …
The COVID-19 pandemic has not been kind to the nonprofit sector and many organizations have had to undergo massive staffing cuts, eliminate programs, and struggle through maintaining minimal viable operations to avoid closing permanently. Many nonprofits are still unsure if they will ever be the same or even operate again.
In April of 2020, Charity Navigator surveyed over 4,000 nonprofit representatives and learned that of those surveyed, 83% reported suffering financial hardship due to the pandemic and the economic shut down. About 70% stated that the organizations either suffered cut backs, or was planning on cutting programs all together. For a sector that provides pivotal services to the public, the impact is difficult to comprehend.
Last year also brought with it civil unrest, a rise in the call for social justice, and decentering of white supremacy culture. Many organizations are now finding that a crisis management plan is not the whole story. Organizations also need to consider who is leading the organization, and if their leadership style is effective. The expectations of our employees are shifting, which then impacts the way in which nonprofit leaders need to manage through a crisis. Employees are expecting authenticity, transparency, flexibility and collaboration from their leaders, characteristics of which are not typically written…
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Nonprofit leaders play an integral role in the promise of social equity. While nonprofits may aim to achieve an equitable mission for the community, nonprofits also draw in donors, board members, and employees. Without leadership prioritizing equitable practices, class representation suffers in these roles and lessens sector diversity.
Donors
Nonprofit leaders play an integral role in the promise of social equity. While nonprofits may aim to achieve an equitable mission for the community, nonprofits also draw in donors, board members, and employees. Without leadership prioritizing equitable practices, class representation suffers in these roles and lessens sector diversity.
Charitable giving, according to a 2020 Gallup poll, shrunk down to 73% in 2020, from 87% in 2005. Yet, charitable giving in the sector has continued to expand rapidly, with expectations of its first $500 billion haul in 2021. Contributions from high net worth individuals are concealing declines in middle and lower class giving. Capitulation to this style of philanthropy further neglects millennials donors, who lag behind the financial impact of previous generations.
Leaders must therefore diversify their donor bases beyond immediate financial gain. The cost paid in effort and resources may not pay off…
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Nonprofits depend on sustainable revenue sources to ensure their mission is fulfilled. Therefore, when a funder requests administrative costs lower than what is needed, or state they will not fund administrative costs, organizations make it work. The Overhead Project speaks to the difficulties that organizations can face when they do this:
"Community nonprofits typically have overhead that is much too low. They often underspend on essential, basic costs such as rent and insurance. They can't afford adequate accounting staff, good technology, or human resources management. They often try to compensate for under-funding of programs and systems by having too few staff or paying staff poorly. The consequences of under-investing in overhead are financial weakness and inefficiencies at the nonprofit, and as a result, fewer services or lower quality services."
Most in the nonprofit sector have heard the question, “How much of my donation will go toward programs?” This may be a triggering question, but with good reason. There are many implications that this question brings, but when it is asked by major funders it causes a ripple effect within the nonprofit sector.
By adhering to these expectations, nonprofits are supporting false expectations in other donors, potential board members, staff and the public. Goggins-Gregory and Howard in The…
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Nonprofit interest in cross-sector collaboration is ramping up due to evaporating resources and increased demand for services. In 2018 analysis by Ben Gose, a reported 57% of nonprofits doubted their ability to continue meeting demand, motiving many nonprofit leaders to consider collaboration with other nonprofits and across sector lines in order to increase organizational capacity.
“Resources, symbolic attraction of alliance members, and expanded networks” as stated in a review from AIM Alliance, are all compelling benefits to joining forces, however, organizations should proceed with caution as these solutions are not sole problem solvers. The Bridgespan Group reminds leaders that “cross-sector collaboration is a complicated and time-consuming process, given the complexity of the issues and range of stakeholders involved.” So where should nonprofit leaders begin?
There is no “one size fits all” strategy, but all collaboration is rooted in trusted relationships. Nonprofits whose organizational cultures encourage outreach and relationship building are already laying the foundational groundwork of high-performing…
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