Salary competition adds to staffing challenges for nonprofits

Salary competition adds to staffing challenges for nonprofits

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Kelley Kuhn, president and CEO of the Michigan Nonprofit Association, noted that nonprofits’ operating funds have often declined during the pandemic. Some nonprofits have seen record years for fundraising, while others are continuing to struggle. A majority of nonprofits in Michigan are also smaller in size, leaving their budgets more restricted. 

“These are grassroots organizations, these are organizations led by people of color, and those are organizations that are not rebounding as quickly as some of the other ones,” Kuhn said. “So, there still remains a great need of support for nonprofits.”

The Michigan Nonprofit Association has surveyed its members throughout the pandemic, finding that office administration roles largely accounted for the staff losses because of a lack of funding, Kuhn said. At the same time, demand for services from those in need increased during the pandemic. 

“That is critical because those are key positions to providing service support to those in need,” Kuhn said. 

Nonprofits also reported a decrease in volunteers, which was largely because of safety concerns during the pandemic. Ultimately, the timeliness of delivering services to people in need was negatively affected between the loss of workers and increased demand for services, Kuhn said.

“Nonprofits got creative and certainly made lots of pivots,” such as forming new community partnerships, Kuhn said. “But I think as the pandemic has continued on, we’re beginning to see the impacts of what’s happening to the human capital.”

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