Nonprofit Workforce Challenges and Opportunities
A comprehensive review reveals a starting point for shared understanding to better support and strengthen the nonprofit workforce.
Independent Sector’s Comprehensive Review of Nonprofit Workforce Issues
In response to concerns about burnout, financial insecurity, recruitment, and retention raised by nonprofit organizations across the country, Independent Sector decided to launch its Center on the Nonprofit and Philanthropic Workforce and lay the initial informational groundwork with a comprehensive desk review of existing research, programming, policies, and funding connected to the nonprofit workforce, and a multipronged stakeholder engagement campaign.
Our comprehensive review began in early 2025 and took about one year. We reviewed 61 research articles, 80 public policies, 64 capacity building programs, and 50 funders. In addition, we engaged nearly 300 stakeholders from around the sector, including charitable nonprofits, academic programs, and foundations.
While this project was meant for internal decision-making, we’ve decided to share what we’ve learned because the task of strengthening the nonprofit workforce must occur in coalition and partnership with other organizations. We aim to provide useful information for nonprofit leaders, grantmakers, policymakers, and others advocating for nonprofit workforce development, and we hope both researchers and practitioners will reach out to share new information with us when they encounter this work.
Through this work, we identified several key challenges and opportunities facing the nonprofit workforce. These categories are not mutually exclusive; many challenges also present opportunities, and there are opportunities that come with their own sets of challenges. Together, this work offers a starting point for shared action to better understand, support, and strengthen the nonprofit workforce.
The list below is not exhaustive of every possible challenge or opportunity facing the nonprofit workforce; additional topics may be added over time.
Challenges & Opportunities
A national listening tour in 2023 revealed nonprofit workforce issues as the sector’s top concern, highlighting the urgent need to better understand and prioritize those issues.
Burnout stems from visible and invisible structural challenges, including but not limited to chronic underpay, heavy workloads, and exposure to trauma. This pervasive issue is one of the most urgent workforce challenges.
Nonprofits face ongoing struggles to attract and retain talent due to burnout, limited advancement opportunities, and compensation that can’t always compete with other sectors.
Low wages and limited benefits leave 1 in 5 nonprofit workers facing financial hardship and undermine sector stability and reputation, but financial models and systems can limit organizational resources.
Artificial Intelligence (AI) presents both opportunities and concerns for the nonprofit workforce, with stakeholders expressing both curiosity and trepidation.
Nonprofit organizations are challenged by unpredictable funding and political climates, which drive workforce instability and worsen issues like burnout and turnover.
Systemic barriers lead to persistent gaps in diversity and inclusion, especially at the leadership level. These gaps also both reflect and affect organizational culture.
Strong leadership and healthy workplace culture are crucial for staff well-being, motivation, and retention, but many nonprofits face challenges with inadequate management practices and support.
The sector faces a critical need for better workforce data to inform policy and support timely and effective decision-making.
