Black Americans as donors and contributors have been pillars in nonprofit and philanthropic efforts toward social change for centuries. They continue to ensure the economical, educational and social advancement of their communities by organizing and collaborating. As part of the celebration for Black History Month, it is important to acknowledge the historical and cultural context of their giving to cultivate diversity and inclusion in the nonprofit sector.

Recognize that the culture of giving is not a new practice for Black people

This culture has been around for centuries.

The “traditions of giving, caring, and sharing” that were central in West African cultures trace back to pre-colonial times, according to Tyrone McKinley Freeman, assistant professor of philanthropic studies and director of undergraduate programs at the Indiana University Lilly Family School of Philanthropy, during an interview for the “Giving With Impact” podcast. Enslaved people who were brought across the Atlantic and survived the Middle Passage continued to practice these values in the Southern plantations as a means of survival.

They spread generosity and grew to look after each other as they were coping with separation from family members and withstanding the brutality of slavery. 

Individuals choose to go into the nonprofit sector because of their passion to complete meaningful work. While the sector tends to attract considerate individuals, nonprofits have trouble retaining that uniquely skilled workforce. This in part is due to the work environment produced, which can often be taxing on employees because of understaffing and funding issues.

By adding to existing practices and adopting new strategies, nonprofit leaders have an opportunity to create finer work environments for all, leading to an increase in job satisfaction and a more effective organization. Altering the workplace in ways that show employees they are valued will bring success; by providing opportunities for employees to develop skills, implementing work rewards and recognition programs, and altering leadership structures can increase job satisfaction, thus decreasing turnover rates.

Skill development

Providing opportunities for employees to build onto and enhance their professional knowledge increases job satisfaction while also benefitting the organization by producing a skilled workforce. When leaders prioritize the advancement of employee skills, employees become more engaged in their work for the organization. By investing in these elements, employees are able to build on their capabilities and will continue to provide best practices when working with clients. 

Creating clear opportunities for employees to advance themselves gives…

Scandal is not an occurrence that is isolated to the government or businesses; the nonprofit sector is privy to it as well. When situations like these occurs, they not only affect the organization involved, but they also place every organization under scrutiny, and if not addressed, a rift between nonprofits and their donors, clients and stakeholders can form.

Trust is something that should never be broken. Tory Martin says that without trust, nonprofits cannot survive. It is imperative that stakeholders’ trust is not compromised when an incident occurs – organizations need to have a plan to respond.

Nonprofits may be more susceptible to scandal due to a lack of internal controls. These controls ensure that one person does not hold too much power in an organization. For example, instead of having one person responsible for writing, documenting and depositing a check, split the responsibility among multiple people. The lack of a vetting process which requires thorough background checks can cause scandals as well. While it is difficult to recruit potential employees, the process should not turn into desperation and overlook their background. Unfortunately, a lot of nonprofits fall into this category and sow the seeds of scandal.

In order to gain a…

We are all striving for financial resilience in the nonprofit world, whether it’s something your organization has been chasing after, or it’s become a recent focus. With substantial scrutiny in the sector on financial ratios, especially program expense allocation, it can be hard to take financial risks for fear of negative publicity, but risk is what can lead to financial freedom.

Conducting a risk assessment to identify where your organization is willing to take risks is the best place to start. From there, a risk profile can be developed and eventually contingency plans. The risk profile can help with short-term planning and transparency between organizational leadership, the board and donors. The risk profile may also include strategies for how your organization will approach areas like funding and investments, program efficiency ratio or human resource management. Eventually, the risk framework should also be used to plan for emergencies. It can be difficult to think about what you would do if the stock market crashed or a natural disaster were to occur in your area, but planning can help your organization endure the most difficult circumstances.

Saving for a rainy day is arguably the least risky thing you can do as an individual; for nonprofits, it can feel like jumping off a cliff. Many organizations think they should be spending that money on programs or additional staff members for the…

Retaining talented and experienced staff is a key component to the success of nonprofit organizations. By focusing on a strategic, paid staff retention plan, nonprofits will curb staffing disruptions, thereby making a greater impact within the social sector. The average turnover rate for the social sector is 7% higher than the for-profit sector. In some divisions of the social sector, the rate is as high as 64.8%. In spite of these staggering numbers, only 13% of nonprofit organizations have a talent retention plan, which can be accomplished in four steps: identification, input, application and evaluation.

Before nonprofits can develop a custom talent retention plan, they must first understand why employees stay with an organization. Employees stay with agencies where they are satisfied with their responsibilities, have a positive relationship with colleagues, and have exemplary leaders. Although each aforementioned point contributes to the foundation of employee satisfaction, leadership is the cornerstone of staff retention. The concept and application of servant leadership is not a new idea to any sector; the servant leader meets the needs of staff members, breeds new…