The Five Core Elements of Nonprofit Organizational Wellness: Part 1

"People" challenges facing nonprofits today and how to solve them

by Rebecca Wiggins

When you think about nonprofit organizations, a local service organization you support might come to mind, or maybe you think of a professional association you belong to for resources and credibility. However, within the nonprofit sector, there are nearly 30 different types of nonprofits including charitable foundations, religious organizations, social welfare or civic leagues, trade associations, fraternal societies, agricultural organizations, and many more.

Despite the differences in structure, purpose, and tax status, many nonprofits share the same challenges when it comes to process, analytics, employee engagement, and culture. Our February blog focused on four specific areas of disruption for nonprofits: COVID-19, workforce, cybersecurity, diversity, equity, and inclusion (DEI).

This five-part series will take a closer look at Five to Flow’s core elements (people, process, culture, technology, and analytics) with a nonprofit lens to help you improve your organization’s sustainability and impact.

People

It makes sense that we’d start with people – they are literally the pulse of your organization and the lifeblood of your work. While technology is an essential component, it cannot replace the nuance, creativity, and purpose that people bring to work.

However, one of the biggest challenges facing organizations today is employee burnout. This is particularly true in the nonprofit sector, where investments in technology, talent recruitment, and retention (and other indirect but essential business costs) are not included in grant funding. This shortage of operational funding, often referred to as the nonprofit starvation cycle, or shifts in funding priorities leaves the organization under-resourced and its employees overwhelmed. In addition, nonprofit employees have the double burden of emotional exhaustion as the work is often tied to solving enormous societal challenges and issues of inequality. This is especially true for employees of color and those who are working to solve challenges within their own communities.

In our recent burnout blog series, we explain why this topic is such a serious issue for employers to understand and address. It not only affects energy levels, intrinsic motivation, emotional well-being, and creativity, but it leads to lower engagement, productivity, and turnover – at a time when the work of nonprofits is more important than ever.

Nonprofit leadership and board members should be focused on investing in essential infrastructure and operational support, and work with Funders to understand the importance of overhead and indirect costs for the sustainability of the organization and its mission. But, there are also critical areas for leadership to focus on to foster a healthy work environment for employee wellbeing, retention, and growth:

Build Foundational Skills. Develop, model, and practice foundational skills like communication, empathy, and vulnerability. Tools like the enneagram and DiSC can help build self-awareness, confidence, and meaningful connection across differences.
Create Role Clarity. Outline clear role descriptions with key responsibilities for each employee and provide the proper resources for the professional development and ongoing growth of each employee.
Define Opportunities for Advancement. Develop a transparent structure for advancement opportunities that are open for all employees so that your employees understand their value to your organization and the pathway to upward mobility.
Provide Timely Feedback and Coaching. Meet regularly with team members to discuss any concerns you have or challenges they may be facing. Schedule personnel review meetings at least quarterly to go beneath the surface, facilitate reciprocal feedback, and determine strategic goals.
Promote Healthy Habits. Establish team norms and practices to promote stress management, and mindfulness for employees to maximize engagement and productivity.

Nonprofits that depend on fundraising may be struggling with sustaining and growing donation levels from previous years. A recent survey suggested that 63% of donors may be more cautious about their giving this year. The main reason for this shift is economic uncertainty and inflation. With so many worthy and competing causes, donors may also feel stretched thin or overwhelmed by competing priorities for their support. Here are our five recommendations to improve donor engagement:

Embrace Digital Channels. Get in front of your supporters and attract new audiences through social media and digital platforms.
Tell Stories. Make your posts compelling and relevant with simple ways for your supporters to get involved and give to advance your mission and impact.
Automate Administrative Processes. Use donor management tools so that you can spend more time personalizing communications and nurturing relationships.
Segment Your Audiences. Create personalized communications based on their interests and preferences.
Show appreciation. Engage with employees and donors in authentic and meaningful ways.

Five to Flow

While most nonprofit organizations are well versed in navigating the changing waters of the sector, there are ways to mitigate the constant barrage of challenges and qualified people who can help. At Five to Flow, our passion is to partner with you to design meaningful solutions that lead to organizational flow. Please contact us for more information about how we can work with your nonprofit to improve business health and alignment for the sustainable growth of your mission and impact. Part 2 of our five part series is on deck!