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ASU Lodestar Center Blog

Research and recommendations for effective, day-to-day nonprofit practice from ASU faculty, staff, students, and the nonprofit and philanthropic community.


This work has been a personal journey as much as a professional one. I’ve been exploring a question that feels relevant not only for nonprofit leaders, but also applicable for all other sectors, and to the collective communities we aim to serve:

How can we recruit and retain a workforce that doesn’t just survive, but thrives?

Often times there is a lot of emphasis and resources that are focused on measuring impact in the nonprofits. While understanding the impact the cause promotes and elevates is important, it is only half of the equation. The second part of the equation that is often missing, or limited resources are allocated towards, is organizational infrastructure sustainability. And here’s the hard truth: When we struggle to recruit, or neglect to retain people, our communities feel it. It causes a ripple effect that spans far and wide. Having a workforce deficit can cause programs to stall, services disrupted, and public reputation and trust can be impacted.

What’s behind the turnover?

Sure, compensation matters. But it’s not the whole story.

The research goes deeper than just compensation. It is the invisible measures that are less easy to quantify, related to workplace culture, organizational investment in the individuals doing the work, and clarity to the mission-driven work. Remember, people stay where they feel seen, heard and valued. It boils down to one word: belonging.

Five…

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financial stability

Every nonprofit organization is reliant upon funding from the community, but funding is never consistent or reliable. Nonprofit leaders play an essential role in innovatively managing the organization’s resources to ensure that the organization can fulfill their mission long-term. Here are five strategies to increase the financial stability of your organization.

Practice mission-focused leadership

Nonprofit leaders should use the organization’s mission as their guide when making decisions as they are responsible for implementing practices that further the organization’s impact on the community. If a decision is made that does not align with the mission, mission drift can creep in which negatively impacts the organization’s ability to fulfill their mission. In my experience, compromising decisions that do not align with the mission are often made when leaders choose to accommodate a funder’s request that they would not have otherwise considered just to receive their funding. A nonprofit leader has a duty to decline or redirect funder requests that do not align with their values in order for the organization to be the most successful. In these situations it is better for the overall wellness of the organization to kindly decline, then offer to connect them to another organization where their gift would be more impactful.

Foster a positive organizational culture

Employees in the workplace want to feel…

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Generation Z (also known as Gen Z or Zoomers) is a fascinating generation aging from 13 to 28. As the newest generation to enter the workforce, they are the first generation who have never lived without the internet. Zoomers are fascinating - confident but anxious, passionate for a cause but often mistaken to be self-centered, quick processors but slow to act. Gen Z is driven when passionate about a cause. Coupled with their unique, fresh viewpoints, tech skills, and social media knowledge, Zoomers could be a huge asset to the nonprofit sector facing a labor shortage.

The nonprofit sector needs to be strengthened, and Gen Z has the potential to do so by enhancing organizational culture, bolstering the workforce, and continuing a strong vision for the future. Nonprofits can intentionally adopt practices that work alongside the incoming generation to create a better sector and galvanize Gen Z. Zoomers bring their technology skills, quick processing, and energy. The nonprofit sector can provide training, education, structure, and mentorship to help Gen Z create lasting careers. To better equip nonprofits and come alongside the newest working generation, there are a variety of ways to improve each organization.

Intergenerational communication

Sharing a work life with people from different generations is a norm, but sharpening each other is key. Avoid stereotypical assumptions on all sides - communication is the…

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piggybanks holding freeweights

A 2022 report from the National Council of Nonprofits calls trust one of the most valuable assets a nonprofit can cultivate. Without donor trust, even the most well-intentioned organizations can struggle. Building trust takes time, but losing it can happen in a headline, a misstep, or an unanswered question. So, what exactly is donor trust? It’s the confidence donors have that your nonprofit will use their funding wisely, ethically, and in alignment with the mission they care about. It’s about believing in an organization’s ability to make a real impact. In a time of high-profile scandals, inconsistent communication, and growing public skepticism about how organizations use their funds, trust has never been more valuable, or more fragile.

Treat transparency as a strategy, not a checkbox

Nonprofits are legally required to disclose financial information, but legal compliance doesn’t always translate into clarity. Donors frequently report that they struggle to access or understand how funds are being used. This lack of clarity fuels public skepticism- according to a 2006 poll, only one in ten Americans strongly believed that charities are honest and ethical in their use of donated funds. To shift this dynamic, nonprofits can communicate financials in ways that are proactive, accessible, and understandable. 

Build internal systems that reinforce accountability

Accountability can start from within. Scandals in organizations like Oxfam and the…

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employee happiness

Wellness movements have gained prevalence in recent years. Following the shifting tide, employers have begun to incorporate wellness programs into their organizations. After all, what better place to promote wellbeing than a place where you are typically at for 8 hours a day? Implementation of employee wellness initiatives is not only born of an employer’s altruism. These initiatives also come in response to ongoing challenges facing the sector such as high rates of turnover and burnout. Emphasis on employee wellness is an organization’s investment into the sustainability of the organization and their people.

As wellness initiatives have gained popularity, Employee Assistance Programs or EAPS, have also become popular. While specific data on the implementation of EAPs in nonprofits is not readily available, some groups estimate that as many at 98% of employers have an EAP of some sort. EAPs come in many different varieties, but the bottom line of employers implementing these programs is to address issues that their employees have that may be impacting job performance. Employee Assistance Programs support issues on topics such as mental health, family, finances, and substance abuse. While EAPs are a great resource, they should not be the be-all end-all of employee wellness initiatives. 

Employee Assistance Programs mainly focus on mental health, but physical health is also an important part of wellbeing. Large…

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ASU Lodestar Center Blog