Understanding the changes coming down the line is a vital aspect of effective social impact leadership.
Here are 3 of the 7 trends we’ll cover in this 2-part series to ring in the new year.(Catch the rest next Monday, December 30!)
1. Staff Retention and Well-Being = Mission Critical 💗
The nonprofit and social impact sector is grappling with burnout and high turnover at concerning levels. One study in 2024 noted that nearly three-quarters of nonprofit workers were looking for new jobs in the next year. Ouch. 😩
Why It Matters:
Human well-being matters in general, but on the organizational level, it’s costly. Staff burnout and turnover is extremely expensive for nonprofits and leads to disruptions in programming.
What To Do:
It’s actually cheaper to invest more in staff compensation and wellbeing (some estimates say it can cost 30-200% of a salary to replace someone).
Offer competitive salaries. But also, focus on strengthening team autonomy and sense of ownership of roles and tasks, good communication between leadership and staff, and developing talent and skills. These are also shown to improve retention.
2. The Rise of AI and Automation Tools 🧰
AI is transforming how nonprofits manage operations, from donor data analysis to personalized communications and grant writing. Tools like ChatGPT are becoming staples for time and resource-strapped organizations.
Some reports are showing that 90% of nonprofits in some fields are using AI for some kind of marketing or fundraising tasks, and are even adopting AI faster than businesses in the private sector.
Why It Matters:
Those organizations already using AI will gain efficiencies and deeper insights into donor behaviors. But there are arguments against rushing in too quickly, too: Leaders need to navigate ethical questions about how to use AI (for example, ensuring AI-generated content remains inclusive and accurate).
What To Do:
Build time into your 2025 plan to explore AI tools, but also, to train your team on AI tools and engage in discussions around how to use AI ethically. This article in the Stanford Social Innovation Review includes a helpful guide.
3. Funders Lean into Trust-Based Philanthropy 💎
What’s Happening:
Nonprofit leaders have been talking about the challenges of fundraising for decades, especially the negative consequences of under-investing in organizations’ infrastructure.
Funders are paying attention, and many are starting to lean into a new philosophy of “trust-based philanthropy”. In short, it’s the idea that funders should focus on building trust with nonprofits they fund and thus provide more unrestricted grants. (There’s a bit more to it that you can read up on here.)
Why It Matters:
This trend could be a game-changer. If this trend continues, nonprofits may benefit from higher levels of unrestricted funding that can be used to create strong infrastructure and systems that ensure they can sustain themselves and scale meaningfully to solve social problems. It’s a good thing!
What To Do:
Get your organization positioned to participate in this trend. Build authentic relationships with potential and current funders that includes transparently sharing the real-life challenges of your work.
Get really, really good at articulating your impacts (vs just describing your programs or mission). Assess how to clearly explain how investing in your organization’s infrastructure leads to scaling your impact, too.
What do you think of these trends?
Hit reply and let me know.
And don’t forget to check out the remaining 4 trends in Part 2 of this article in next week’s newsletter – our final Changemaker Mondays ☀️ ☕ 🌍 of 2024!
