Feeling the Squeeze

Nonprofits in Minnesota, like everywhere else, are having a staffing crisis

The nonprofit sector plays a crucial role in addressing societal needs and ensuring the well-being of vulnerable populations; this is something we all know. But what happens when there is no one there to watch the shop? That was the question that came to the forefront when I read this article by Kelly Smith for the Star Tribune in Minneapolis, Minnesota.

Smith reported on recent findings from a survey conducted by the National Council of Nonprofits that have revealed a concerning trend – an alarming shortage of staff and job vacancies within nonprofit organizations. This issue not only affects the efficiency and effectiveness of nonprofit services but also jeopardizes the well-being of individuals who rely on these services. Today, let’s discuss the implications of this workforce shortage for smaller nonprofit organizations and discuss strategies they can employ to combat this pressing problem.

The Workforce Shortage in Nonprofits

According to the survey, approximately 81% of Minnesota nonprofits have reported job vacancies, a higher percentage than the national average of nearly 75%. Moreover, nearly two-thirds of Minnesota nonprofits have more job vacancies now than before the COVID-19 pandemic in 2020. While the sample size of respondents in this survey was relatively small, the findings resonate with the challenges faced by nonprofit organizations across the state. These workforce shortages have far-reaching implications for nonprofit organizations and the communities they serve.

Implications for Smaller Nonprofit Organizations

• Impact on Service Delivery: The most immediate and concerning implication of workforce shortages is the impact on service delivery. Nonprofit organizations are often at the forefront of addressing critical societal needs, such as housing assistance, child care, and food security. With reduced staffing levels, these organizations may be forced to scale back their programs and services, leaving vulnerable individuals without essential support.

• Financial Strain: Nonprofits are also grappling with financial challenges. Rising costs and declining revenues, exacerbated by the pandemic, have made it difficult for them to attract and retain qualified staff. Additionally, many nonprofits are experiencing funding reductions, making it even more challenging to maintain their operations and meet the increasing demand for their services.

• Burnout and Retention: The "Great Resignation" has affected the nonprofit sector as well, with employees leaving for careers that offer better compensation and work-life balance. This trend is particularly detrimental to smaller nonprofits, as they often struggle to compete with larger organizations in terms of salaries and benefits. High turnover rates can disrupt the continuity and quality of services provided.

• Limited Capacity: Workforce shortages limit the capacity of smaller nonprofit organizations to take on new initiatives or expand existing programs to meet the growing needs of their communities. This can result in missed opportunities to address pressing social challenges effectively.

Strategies for Smaller Nonprofit Organizations

To address the workforce shortage crisis, smaller nonprofit organizations must adopt innovative strategies tailored to their unique circumstances. While the challenges are significant, proactive measures can help these organizations navigate these turbulent times.

• Competitive Compensation: To attract and retain qualified staff, smaller nonprofits should consider offering competitive salaries and benefits. This may require reallocating resources, seeking additional funding sources, or collaborating with other organizations to pool resources and provide competitive compensation packages.

• Hybrid Work Models: Embracing flexible work arrangements, such as hybrid work models, can make nonprofit positions more attractive to potential employees. Offering remote work options, when feasible, can expand the talent pool by allowing staff to work from various locations.

• Invest in Employee Development: Smaller nonprofits can invest in training and professional development programs to upskill their existing workforce. By empowering current employees to take on new responsibilities and grow within the organization, nonprofits can reduce turnover and strengthen their internal capacity.

• Streamline Operations: Efficiency is essential in organizations with limited resources. Smaller nonprofits should continually assess their operations and look for opportunities to streamline processes, reduce administrative burdens, and allocate resources more effectively.

• Collaboration and Partnerships: Collaborative efforts with other nonprofits, government agencies, and community organizations can help address workforce shortages collectively. Sharing resources, expertise, and staff can enhance the ability of smaller nonprofits to fulfill their missions effectively.

• Advocacy and Fundraising: Nonprofits should engage in advocacy efforts to raise awareness of their workforce challenges and advocate for policies that support the sector. Additionally, nonprofits should diversify their fundraising strategies, seeking support from foundations, corporate sponsors, and individual donors to ensure financial stability.

• Volunteer Engagement: Leveraging volunteers can help fill staffing gaps temporarily. Nonprofits can recruit and train volunteers to assist with essential tasks, reducing the burden on paid staff.

• Succession Planning: Recognizing that retirements are contributing to workforce shortages, nonprofit organizations should implement robust succession planning strategies. Identifying and developing internal talent can help ensure a smooth transition when key staff members retire.

• Data-Driven Decision-Making: Smaller nonprofits should invest in data collection and analysis tools to better understand their workforce needs. This data-driven approach can inform staffing decisions and resource allocation.

• Community Engagement: Engaging with the community and building a strong network of supporters can help nonprofits source talent from their local communities. Community partnerships can also lead to valuable referrals and collaborations.

The workforce shortage crisis facing nonprofits across the country is a complex and multifaceted challenge that demands immediate attention and innovative solutions. Smaller nonprofit organizations, in particular, face unique difficulties in attracting and retaining staff due to resource constraints. However, by implementing a combination of strategies, such as competitive compensation, flexible work models, collaboration, and advocacy, these organizations can navigate the current workforce landscape and continue to fulfill their essential missions. Solving the workforce shortage problem is not only crucial for the sustainability of nonprofits but also for the well-being of the communities they serve.

The Weekly Notebook

A few notes and ideas of things I am seeing and hearing on the nonprofit world.

Our Other Publication is Growing!

I recently started a new substack that is focusing on my work here in my hometown of Troy, Ohio and it is growing like the grass in yard after the much needed rain this week! The Civic Capacity substack has been stewarding the positive energy that came from a close Mayoral election into productive conversations about our community. Even if you aren’t from the Troy community, I do believe you will find some interesting ideas and concepts about local government and I would love for you to be a part of the conversation we are having over there!

Please check it out and let me know what you think! You can find it here:

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If you or your nonprofit would like to advertise a job opening here, please shoot me an email at pinnaclestrategiesltd@gmail.com. We have a large and growing base of readers and we are happy to get the word out!

How Can We Work Together?

Did you know that Pinnacle Strategies works individually with nonprofit and public sector leaders to help them solve problems, achieve goals and gain confidence in their roles?

Why?

Because, this work is hard and it’s often a lonely road. Our nonprofit and public sector leaders need people that they can talk to to get solid advice and encouragement to do the work that is in front of them. If you feel that this can be of value to you, or a member of your team, please reach out to pinnaclestrategiesltd@gmail.com and let’s talk.

Ready to Learn Something New?

One of the prettiest cities in the Midwest is Indianapolis and travelling there can open a perfect opportunity to sharpen your skills and meet new professionals in the field. I would encourage you to look at some of the offerings of The Fund Raising School at the Lilly School of Philanthropy at Indiana University’s campus in Indianapolis. The professional development school has great programming both on-line and in-person both in Indianapolis and at other sites across the country. Take a look at their course offerings here!

Online Learning Options from Texas A&M Announced

If travelling for professional development isn’t in the cards (or the budget), the Center for Nonprofits at Texas A&M University has some great offerings! I recently enrolled in one of their certificate programs and really enjoyed the online format and the online discussions that were developed. It was time and money well spent and I would highly recommend this program, especially for early or mid-career professionals. The next session begins in early February and you can learn more here!

Other Ways to Connect

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