Nonprofit leaders are looking to the future with renewed optimism as a majority plan to bolster staffing, salaries, programs, and technology in the coming year, according to a new survey.
The responses suggest most believe they have emerged from the pandemic and other challenges of the last three years stronger and more confident in their ability to weather future challenges, even as economic uncertainty and fears of a recession loom. “There’s an air of optimism as we look toward the future, and it’s clear that we’re not returning to the way things were a few years ago,” wrote the authors of the 2023 Not-for-Profit Industry Report.
This is the sixth annual survey of this type. Despite painting a mostly rosy picture, the authors acknowledged the ongoing challenge of a tight labor market and importance of staying nimble amid economic uncertainty. To do so, they recommend organizations consider outsourcing where possible and embracing the opportunity to tap into the wider talent pool enabled by remote work.
CBIZ and MHM, partners in providing business consulting and accounting services to clients across the country, commissioned the jointly published white paper from a pulse survey of 437 leaders representing charitable, religious, educational, and other nonprofits. Respondents included presidents, CEOs, chief financial officers, executive directors, and board members.
Nearly all leaders expect to provide modest wage increases in the coming year, and nearly two-thirds expect to maintain or increase staffing as they refocus on attracting and retaining the right talent and staying ahead of inflation. Most envision over half of their workforce remaining in a remote or hybrid setup as well, suggesting a growing recognition that remote work is here to stay.
Technology also is being embraced more than ever in tandem with an increased focus on cyber risk management, reflecting the pandemic’s impact as a catalyst for technological change as well as leaders’ newfound appreciation for the importance of responsible stewardship of digital assets and protecting sensitive data. Other findings from the survey include the following:
- 58% of respondents said they have returned to or surpassed their level of pre-COVID operations.
- 57% cited short-term and long-term planning as top priorities for the coming year.
- 22% expect to offer salary raises of more than 5% in the coming year.
- 24% plan to increase staffing by more than 10% in the coming year.
- 53% plan to expand their organizations’ capacity to deliver services; most others expect to maintain the same capacity.
- 57% anticipate making program changes, with 33% citing a desire to institute new programs and 27% citing increased demand for existing services as factors.
- 60% are confident in their ability to meet strategic goals through financial and operational technology.
- 51% are confident in their ability to navigate the technological challenges of cybersecurity and data privacy.
“Nonprofit leaders have proven, time and again, that they can adapt quickly to changing or adverse circumstances so they can continue to meet the needs of their communities,” said Hope Goldstein, a managing director with CBIZ and leader of its Metro New York Not-for-Profit and Government Practice. “Their confidence and optimism demonstrate strong resilience and allow these leaders to strengthen their organizations now and for the future, to assure positive impacts.”
