In 2025, nonprofit chief executives are being asked to do more with less — and to keep staff motivated through it all. The workforce landscape is shifting, and while mission remains a powerful draw, uncertainty for the nonprofit business model is creating burnout and turnover.
At Next Stage, we’re hearing a common concern from our nonprofit network: How do we build teams that stay committed and energized amid rising pressure and change?
To help address it, we launched a survey on staffing, team morale, and what leaders are doing to keep their teams grounded. We heard from 20 nonprofit leaders across North Carolina, and the results tell a familiar story — most teams are steady, but many are stressed. Particularly for smaller organizations, which make up 90% of the nonprofit sector, the challenge of attracting and keeping top talent is more real than ever.
Organizations are struggling with two sides of the same challenge. First, how to retain the talent they have in the face of what is shaping up to be intense competition for financial resources. And second, how to recruit the sort of talent needed to be successful during a period of disruption and increased need.
So what can you do about it? Here are five strategies that can help your nonprofit compete for talent and build a strong, sustainable team in the year ahead.
1. Offer Competitive Compensation — Within Your Means
It’s no surprise that compensation was one of the top two pressures on staff retention in our survey, named by 45% of respondents. Salaries that don’t reflect workload or cost of living are pushing people to look elsewhere — but that doesn’t mean only high-paying organizations win.
Smaller nonprofits can still lead with transparency and creativity:
- Conduct regular compensation audits to ensure internal equity
- Publish salary ranges in job postings
- Explore low-cost financial perks like retention stipends, spot bonuses, or 401(k) matching
For board leaders considering how best to retain a dynamic chief executive, Next Stage offers executive compensation studies that can provide meaningful data to help guide that process.
2. Create Clear Growth Pathways
Also cited by 45% of respondents: a lack of advancement opportunities. For many staff, professional growth is just as important as pay. Your best performer is likely being headhunted by other nonprofits — that’s just how it works. The good news is that creating growth opportunities is often more within your control than you might realize.
Some strategies to consider:
- Cross-train your team so staff learn new skills outside their job descriptions
- Promote internal stretch assignments to build leadership capacity
- Invest in professional development — including low-cost online courses or free webinars
Even if your nonprofit is on the smaller side, growth can happen horizontally. When advancement isn’t vertical, it can still be meaningful.
3. Embrace Flexibility as a Core Value
A full 70% of respondents said they’re offering flexible schedules or remote options in 2025. What began as a COVID-era strategy has grown into a baseline expectation for many workers. It’s an area where nonprofits can be particularly well-positioned to attract and keep talent.
That doesn’t mean sacrificing coverage or consistency. Flexibility can look like:
- Core hours with flex time on either end
- A hybrid model with in-office anchor days
- Adjustments to accommodate caregiving or wellness needs
Flexibility is as much a perk as a burnout prevention strategy these days. And for many nonprofits, it’s a powerful differentiator.
4. Lead with Culture — and a Talent Strategy to Match
Six in ten survey respondents are doubling down on culture-building this year — team retreats, intentional gatherings, stronger internal communication. And for good reason: workplace culture is the connective tissue between your mission and your people.
Ways to treat talent as a strategic priority year-round:
- Build candidate pipelines before there’s an open role
- Tell your organizational story consistently across platforms
- Incorporate values and mission language into your job postings
If you haven’t done values or guiding principles work, this may be the year to start. And if you already have, now is the time to reinforce them — not just on the wall, but in everyday behavior and decisions. (This is a key focus of Next Stage in its organizational strengthening work).
5. Think Beyond Basic Benefits
In the nonprofit sector, employee benefits typically cover the basics (things like health, dental, and vision insurance). But in today’s increasingly competitive job market, those offerings may not be enough.
Here are some creative, budget-conscious benefits small nonprofits are using to stand out:
- Paid parental leave or phased return-to-work
- Mental health days or self-care stipends
- Sabbaticals after 5 years of service
- Access to financial coaching or student loan repayment plans
- Flex days for community service or passion projects
The right benefit doesn’t have to cost a lot — it just has to show your people that they matter.
Your People Are the Strategy
What will the next few years look like for nonprofit organizations? The data to inform that answer is ever-changing, but signs point to an uphill climb for nonprofits of all sizes and missions.
How will your nonprofit not just survive but thrive during a time of such uncertainty? If you’re asking this question, you’re not alone. The sector is facing real challenges — but that makes clarity, compassion, and culture all the more important.
Competing for talent in this environment requires intention — not just reacting to staffing needs, but building a workplace where people want to stay.
Start with one strategy. Build from there. You can do this.
Want help putting these ideas into action? Let’s talk today.
See a comprehensive report of last month’s survey results here, and follow us on social media to stay in the loop on future findings.
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