Page 30 - 2024 Nonprofit Industry Trends

29 30

JACQUELINE TISO ALISON LA FERLITA CHARLES D. HAMMERMAN CHRISTINE DESKA

FOUNDER & CEO EXECUTIVE DIRECTOR PRESIDENT & CEO PRESIDENT & CO-FOUNDER
NONPROFIT RESOURCE HUB
JMT CONSULTING GROUP DISABILITY OPPORTUNITY FUND NONPROFIT SECTOR STRATEGIES &

BELLESBOARD
As we look back at 2023 and forward to 2024, we anticipate the most significant issues will continue to In conversations with numerous nonprofit leaders, the universal concern revolves Capital, capital, capital! How will not-for-profits “balance the budget” in 2024? When we partner with nonprofit organizations to facilitate and draft their strategic plans,
be financial sustainability, staffing constraints, digital transformation, and cybersecurity threats. around the ongoing economic uncertainty driven by global events. An unstable Depending on how much fundraising is relied upon to fill the operations gap, we are we are given a unique window into various parts of organizational growth and development.
economy invariably leads to an increased demand for our organizations’ services and suggesting to our not-for-profit colleagues to avoid complacency and build upon
Financial sustainability will continue to be a challenge as the economic uncertainties of inflation persist, support. Nonprofits may find themselves needing to expand their staff and resources proven strategies (events, direct mail, etc.) and find additional, unconventional and You have likely heard many times, “What good is a strategic plan if it sits on the shelf?” I
state/federal including COVID/ARPA dollars continue to recede, and increased competition for funding to meet this demand, but the pressing question is whether they can stretch their creative sources in 2024. With another contentious election cycle ahead and world would like to add, “What good is a strategic plan if your employees are disconnected from
amid changing donor behaviors expands. Nonprofits will need to continue to look at streamlining already strained budgets to do so. This question looms heavily on the minds of many events remaining unstable, individual and foundation giving towards philanthropy may it -- along with your values and your vision?”
operations, investing in technology, and diversifying funding sources wherever possible. Forecasting the nonprofit leaders. get diverted to political causes and overseas efforts.
potential operational impact of changes in state/federal grants and other revenue streams will be vital That said, I am seeing a growing trend of reduced engagement among nonprofit staff, which
to management’s ability to make strategic decisions for their organization’s operations. In addition, Nonprofit organizations, and the sector, in general, will need to adapt to In additional to the “cry for capital,” staffing is the next largest concern of our not- can lead to a variety of negative outcomes.
various challenges and changes in the upcoming year. for-profit colleagues. Each organization is unique, so if this is helpful, here is DOF’s
Staffing constraints due to the high levels of turnover, including at the c-suite level, combined with strategy for 2024 and beyond: we asked the Board of Directors to adopt a Strategic In 2022, the average turnover for nonprofit organizations was approximately 19%, whereas
the declining numbers of experienced labor available and the growing cost of replacement staff, all This may include: Plan which included “Next Generation” as our key theme. Every decision we make is the average all-industry turnover rate was 12%. When you couple this turnover rate with most
combining to make it more and more difficult for nonprofits to find the human resources needed to with a goal towards hiring and retaining younger talent. As a 16-year-old organization, nonprofits’ inability to offer competitive salaries, employee engagement is often lacking as
deliver on their mission. Qualified staff are only going to continue to become more and more difficult to • Compliance with Evolving Regulations we are working to transfer institutional knowledge away from the founders to the next well. Through a strategic planning lens, this negatively impacts overall buy-in and connection
find, hire, and afford in 2024. Keeping an organization’s mission and culture front of mind as part of the • Financial Resilience generation. We provide a wide berth of experience and job responsibility to each hire. to your organization’s longer-term goals and vision -- and is a stark reminder of how “culture
hiring process is vitally important for the success of the new hire and the organization. Achieving this Financially we are competitive with salaries and bonus structures and review every can (indeed) eat strategy for breakfast.”
will be challenged when there is a lack of capable and affordable candidates, so organizations evaluate • Efficient Resource Allocation person’s job portfolio annually. We hope that larger investments in staff in the short-
their operations and what positions might be better served by outsourcing. • Staffing Challenges term will pay dividends down the road. To address the problem of reduced employee engagement, my recommendation is for
nonprofits to go back to basics when it comes to creating a consistent and thoughtful
• Digital Transformation, including AI
While more and more nonprofits increasingly recognize the importance of technology, Digital Disability Opportunity Fund (DOF) crosses into two complimentary markets: not- feedback channel for staff and stakeholders alike. Consider an investment in a formal staff
Transformation, and ensuring cybersecurity, the cost of those needed investments is another challenge • Donor Engagement for-profit community development and the disability market. The disability market, satisfaction survey so that you have baseline data to pull from. Consider an informal impact
organizations are working to manage. Building financial resilience through upgrades to their technology • Program Evaluation especially on Long Island, is exponentially growing. The number of children and survey based around your strategic plan growth areas. Consider bringing your staff together
that will automate back-office admin/operations, improving efficiency and helping offset the challenges teenagers being treated for physical, emotional, intellectual/developmental disabilities for an in-person and/or live virtual session where you can celebrate collective successes
of having to find staff and the increasing cost of that staff. • Advocacy and Awareness and substance use disorders continues to grow. Our “market” approach to addressing while also opening an honest conversation regarding areas of concern.
• Diversity, Equity, and Inclusion public issues with private-sector solutions makes us proud to be headquartered on
Donors, funders, and the public are increasingly demanding transparency and accountability. Nonprofits Long Island. In both Nassau and Suffolk Counties, creative housing projects, new Your organization’s sustainability and level of impact is at risk when your most precious asset
need state of the art back-office infrastructure to quickly and accurately demonstrate their impact • Crisis Preparedness, data security, and risk management businesses started by entrepreneurs with disabilities, treatments at world-renowned -- your human capital -- is disengaged.
through effective measurement and reporting mechanisms. • Collaboration hospitals, not-for-profits which understand how to partner in developing solutions and Many organizations are still trying to find their footing post-covid and have yet to re-establish

Finally, cybersecurity threats can impact nonprofits in various ways, and it’s important for organizations • Transparency and Reporting school districts unafraid of addressing the needs of their students proves that Long important elements of employee recognition and opportunities to bring staff back together.
to stay vigilant and implement robust security measures. Nonprofits must pay attention to the increased It’s important for nonprofit organizations to remain flexible, agile, and forward- Island is the perfect “living laboratory” for creating a better future for the disability Take your staff feedback into account and start with a few tangible improvements that you
sophistication of cybersecurity attacks, ransomware threats, data privacy and compliance challenges, thinking in the face of evolving circumstances. Staying attuned to changing needs, market. We are very excited to see what will be developed in 2024 and look forward to can commit to in a consistent fashion.
cloud security concerns, and remote work security. These and other kinds of cybersecurity threats staying informed about industry trends, and fostering a culture of innovation can help helping more dreams come true!
require increased awareness and training throughout an organization. nonprofits navigate the challenges and changes in the coming year.