Nonprofit Workforce Challenges

In 2021, the National Council of Nonprofits found that nonprofit workforce shortages were “intolerably high.” In 2023, the Council conducted a survey of more than 1,600 nonprofits to find if workforce shortages were still impacting organizations and the communities they serve.

Survey results clearly showed that this issue has not gone away. More than half of nonprofits have more vacancies now than they did before the pandemic. Nearly a third reported longer waiting lists for services. Small, rural, and human service organizations have been the most impacted.

Local Challenges

To prepare for creating a new strategic plan, this spring the Community Foundation conducted a survey of nonprofits serving Linn County. The local data aligns with national trends.

Employee recruitment and retention challenges are impacting more than 70% of local organizations; more than 86% noted that demand for services exceeds current capacity. Given current trends, few see these challenges going away: 78% expect to be impacted by workforce shortages in the next five years, and 95% expect demand for services to exceed capacity.

Conversations with local nonprofit leaders reveal even more alignment with the national data. Foundation 2 Crisis Services, which provides various crisis and counseling supports, saw a significant increase in demand for services at the onset of the pandemic.

“A lot of people sought help for the first time during the pandemic,” said Emily Blomme, CEO. “Both volume and acuity have increased since pre-pandemic—we’re seeing more people at risk of suicide or in need of stabilization. During the pandemic, a lot of great staff stepped up to take extra shifts, but that led to significant burnout.”

How Nonprofits Are Responding

Over the last few years, many have left emotionally taxing roles like crisis response for jobs that pay more, come with less stress, and require no specialized skills or knowledge. In response, organizations like Foundation 2 have raised wages and looked for new ways to increase employee satisfaction and wellbeing. An increased focus on employee benefits, like floating mental health days, hybrid work where possible, and flexible dollars for employee insurance have been effective.

The Arc of East Central Iowa, which serves people with disabilities and their families, notes that while the workforce shakeup has subsided to a degree, the challenge is not gone.

“We have good retention, but we haven’t recovered from COVID losses,” said Theresa Lewis, Executive Director. Current staffing challenges are having a very real impact on The Arc’s ability to pursue its mission. “Before the pandemic we didn’t really maintain a waitlist; we now have 120 families waiting for services. We don’t have the staff needed to meet this demand.”

Restrictions placed on funds can make it more difficult to respond to such challenges. Often, gifts or grants to nonprofits are for a specific use. Funders and donors are sometimes reluctant to cover administrative expenses, and government contracts do not accurately reflect the actual cost of program delivery.

How Philanthropy Can Help

Of course, there is more to the issue than salaries and benefits, and there remains room for creative approaches through philanthropy. Community outreach and support for local educational groups, for example, can help build the pool of qualified workers and generate interest in nonprofit careers.

In recent years, the Community Foundation has also worked to build the Greater Good Fund, which supports competitive grant programs. These grants support local programs and projects and help build the capacity of organizations serving Linn County. The Greater Good Fund now also provides general operating support grants, which equip organizations with the flexible funding they need.

The Community Foundation has long been a convener on issues of broad community importance. In the months ahead, we look forward to working with local nonprofits and donors to better understand and respond to the changing workforce landscape. By finding creative ways for philanthropy to help meet community needs, we can help create a stronger, more agile nonprofit sector, which in turn leads to a healthier, happier Linn County.

Learn about and support local organizations through the Nonprofit Giving Center.