Entries with Author: Shannen Camarena

Staff members and volunteers form the backbone of any nonprofit. Their time and efforts have a direct impact on your organization’s ability to make a difference in your community. Recognizing their contributions can be critical to helping your nonprofit meet its goals over the long term.

That’s why so many nonprofit leaders are building an ongoing recognition program to reward the hard work, loyalty and important milestones achieved by both staff members and volunteers. 

Those efforts can pay off in significant ways. In fact, recent studies show that personal recognition programs can decrease turnover by as much as 43% – simply put,  employees and volunteers who feel valued are much more likely to remain committed to your mission.

Cost-Effective Recognition Strategies that Reward Nonprofit Employees

Many nonprofit employees acknowledge that their modest paychecks aren’t what drives them to excel at their jobs. Instead, they’re motivated by a deep passion to make the world a better place and a strong dedication to their organization’s mission.

Consider layering multiple recognition opportunities into the fabric of your organization to help keep staff members engaged in their work and loyal to your nonprofit. Recognition touchpoints could include:

  • Spotlighting Mission Moments: Nonprofit managers should be encouraged to recognize individual employees during team meetings with specific examples of how their recent efforts directly helped the organization’s mission or a person in your community. Highlighting the impact of their actions helps bring a sense of pride in their work and also rewards behaviors you’d like to see in other employees.
  • Encouraging Peer Recognition: While recognition from leadership can be effective, shout-outs from co-workers can be an even more powerful way to build a sense of team unity. A recent study by Auburn University found that staff members are 37% more likely to go the extra mile on projects when their organization has an ongoing peer recognition program. Make it easy for team members to publicly recognize staff who go above and beyond by implementing a “Bravo Board” in the team break room (complete with basic forms to help get staff members started) or set up a digital channel on a platform like Slack or TEAMS where fellow employees can recognize each other’s contributions. To kick-start the peer recognition process, consider asking managers to be on the lookout for exemplary examples from team members who do not report to them. When these managers begin “cross-seeding” the peer recognition process by using the Bravo Board, other employees may be more likely to join in the recognition cycle as well.
  • Awarding Additional Time Off For Meeting Team Goals: While staff members are dedicated to your mission, it’s also important to recognize that they’re often busy people with a life outside of their job. Rewarding employees with a Friday afternoon off or an extra floating PTO day after meeting a big goal delivers the message that their efforts are valued and their contributions make a difference.
  • Celebrating Employee Milestones: These celebrations can take many forms. Make an effort to acknowledge team member work anniversaries and birthdays with a quick congratulations as you see them in the hallways or during meetings. Personal notes wishing them a happy birthday and mentioning a reason you’re happy they’re on the team can also build team loyalty. Consider highlighting bigger milestones with special mentions in your organization’s newsletter or by presenting the team member with a special certificate highlighting their years of service or ongoing impact during an event or all-hands meeting.
  • Investing in Growth: For employees with a demonstrated record of loyalty to your organization or who play important roles in key initiatives, your organization could recognize their contributions by providing professional development opportunities such as continuing education courses, conference attendance or sponsoring them in mentorship programs. Recognizing a team member’s value by helping to further their career can bring a significant boost to retention. A recent LinkedIn survey revealed that 94% of employees say they’d stay with their current employer if the organization invested in their career development.

Innovative Ways To Recognize Volunteers

Volunteers can be the fuel that pushes a nonprofit over the top when it comes to important goals. At the same time, they can be critical when an organization needs to scale up to meet growing needs within the community. But without recognition, volunteers may also feel that their efforts are undervalued and they could better spend their time elsewhere.

Rewarding volunteers with regular recognition can help your group build a solid network of volunteers who enthusiastically support your mission and can be counted on when you need extra manpower. At the same time, these loyal volunteers may eventually step into permanent  roles within your nonprofit or on your board.

Recognizing volunteers means more than remembering to thank them during speeches at events.  Building a strong volunteer recognition program often includes:

  • Sending Personal Handwritten Notes or Emails: Today’s technology makes it easy to deploy a one-size-fits-all email to your volunteers after an event. While those communications have their place, personal notes and emails often deliver more impact and are perceived as more valuable. A personal note or email doesn’t need to be long to be meaningful. A short communication recognizing the volunteer’s time, their unique talents or connections, or their ongoing efforts on behalf of your organization can help you build a lasting connection.
  • Creating Digital Badges Volunteers Can Earn: This can be particularly engaging for nonprofits that use online software to track volunteer hours. This digital recognition program can be based on the number of hours served, years involved with your organization, number of community members served or any other fun tie-ins to your mission. Remind volunteers of the badges they can earn and add them to their volunteer profile as they reach each level. If volunteers wear badges or nametags during events, consider adding icons for the badges they’ve earned next to their names. At events, volunteers who have earned certain badges could be highlighted as another layer of recognition. Long-time volunteers who have achieved significant badge levels could be honored with milestone certificates or plaques during annual events.
  • Spotlighting Volunteers In Newsletters or on Social Media: Sharing volunteer stories and photos in your nonprofit’s newsletters or social media can be a powerful way to recognize these important contributions. Consider ways you can highlight groups of volunteers who may be unsung heroes during an event in addition to recognizing stand-out volunteers who go above and beyond for your organization. IMPORTANT: Be sure to get permission before sharing volunteer names, photos and stories. This could be as simple as asking volunteers to sign permission forms as they begin working with your organization.  However, for more in-depth features, it’s also smart to get permission for that specific spotlight.
  • Providing Exclusive Experiences: Many volunteers are drawn to your nonprofit because they feel invested in or have been impacted by your cause. They want to help your group make a difference. Giving them an inside opportunity to learn more about your mission and how you’re meeting specific challenges in your community can be an attractive reward. “Behind-the-scenes” tours, early access to certain events or invitations to special volunteer/staff gatherings can also help increase their affinity for your nonprofit and solidify their sense of being a valued part of your organization’s team.
  • Offering Tangible Career Assistance: Volunteering often helps people develop new skills, get real-life experience and build their resumes. These individuals might greatly appreciate a LinkedIn recommendation or letter of recommendation highlighting their effectiveness as they work with your organization. Identifying specific contributions the individual has made to your group and praising their work ethic or unique skills can help the person stand out as they seek to advance their career. At the same time, your recommendation builds their loyalty to your nonprofit and may help you attract volunteers with similar skills in the future.
  • Hosting Volunteer Appreciation Events: Many people say they volunteer to build social connections and a sense of community. Budget-friendly volunteer picnics or gatherings can be a smart way to celebrate the efforts of your team of volunteers while also helping them forge friendships with other people who share their dedication to your cause. Encourage interactions among different types of volunteers with fun getting-to-know-you activities in addition to relaxed mingling.If possible, try to keep “shop talk” about your nonprofit’s mission at a minimum so people can focus on meeting other volunteers and have fun.

Ongoing Recognition Helps Nonprofits Build Stronger Relationships With Employees and Volunteers.

Implementing a strategy of frequent shout-outs and regular recognition is a cost-effective way to build engagement among both employees and volunteers. That ongoing engagement often results in a dedicated team that’s vested in helping your nonprofit meet its goals over the long term.

If you’d like more ideas on ways to develop a recognition and retention program, take advantage of the 60-day Free Trial of HR Workplace, powered by Mineral. You’ll find additional resources to help you build lasting connections with your nonprofit’s team members and volunteers.

SOURCES:

https://www.nonprofitlearninglab.org/post/recognize-to-retain-6-strategies-for-nonprofit-volunteer-retention

https://www.innovnp.com/blog/using-employee-recognition-programs-to-drive-retention

https://www.tremendous.com/blog/ideas-for-employee-recognition/#11-employee-recognition-ideas

Nonprofit professionals are no strangers to adversity. Scarcity, complexity, and urgency have always been part of the work. But the current landscape feels especially heavy. Funding cuts are forcing difficult decisions. Political upheaval is creating uncertainty and division. And at the same time, the needs of the communities nonprofits serve are growing more complex, more visible, and more urgent.

In moments like these, morale can quietly erode. Staff may feel stretched thin, anxious about the future, or emotionally drained by the gap between what they want to provide and what resources are available. Supporting morale during difficult times isn’t about offering empty optimism—it’s about creating conditions where people feel supported, valued, and connected to the mission even when the road ahead is unclear.

Acknowledge the Moment—Out Loud

One of the fastest ways morale declines is silence. When leaders avoid talking about the challenges the organization is facing, employees will almost always assume the worst.

Acknowledging uncertainty doesn’t weaken confidence—it builds trust. Be transparent about what you know, what you don’t know yet, and what steps are being taken. While you’re at it, reassure employees that their well-being is part of the decision-making process, not an afterthought. This can go a long way in strengthening morale—when people feel informed, they feel respected.

Reconnect Employees to Your Mission

Your mission is a powerful motivator in the nonprofit sector, but it can become a double-edged sword. During difficult times, staff may feel pressure to “push through” because the work matters so much but this often leads to burnout and or resentment.

Instead of using your mission as a reason to push employees to do more, use it as a source of encouragement:

  • Share stories about recent wins and how it had a positive impact on the organization
  • Connect everyday tasks back to the communities served
  • Highlight how individual roles contribute to the bigger picture

This isn’t about saying “the mission should be enough,” it’s about reminding people why their work matters while still respecting their limits.

Focus on What You Can Control

While nonprofits can’t control funding disruptions or what’s going on in the political climate, they can control how they manage their workforce.

Areas where small changes can make a big difference:

  • Streamline processes that drain time and energy
  • Clarify priorities so employees aren’t guessing where their time should be spent
  • Reduce the number of weekly meetings or shorten the duration of meetings

Efficiency isn’t just about saving money—it’s about protecting capacity and focus. When people feel their time is respected, engagement increases.

Normalize Flexibility and Compassion

Many nonprofit employees carry invisible burdens that we may not know about—financial stress, caregiving responsibilities, or emotional fatigue from serving communities in crisis. During challenging times, these burdens can feel amplified. Nonprofit leaders may not realize it but they can make a huge impact on an employee’s morale. A supportive manager can buffer stress where an absent or overwhelmed one can unintentionally amplify it.

Equipping leaders with the right tools can make all the difference in the world, including:

  • Guidance on having empathetic, honest check-ins
  • Flexibility to adjust workloads or deadlines where possible
  • Concise messaging for employees so they don’t have a reason to speculate
  • Coaching on how to normalize mental health conversations

Encouraging leaders to ask simple questions like “How are you doing?” or “What support would help right now?” can go a long way in helping employees feel seen. Compassion doesn’t require a large budget—just the ability to adjust expectations.

Celebrate Progress, Not Just Outcomes

In difficult seasons, major wins may be rare. Waiting to celebrate only big milestones can leave teams feeling like they’re constantly falling short. Instead, make it a point to recognize effort or creative problem-solving when resources are limited.

Regular recognition—whether through team meetings, internal communications, or personal notes—reinforces that the work people are doing right now matters.

Moving Forward Together

Strengthening morale during difficult times is not a one-time initiative—it’s an ongoing practice. It requires honesty, empathy, and a willingness to adapt. For nonprofits, whose people are often driven by deep commitment to others, sustaining morale is not only a workforce issue—it’s a mission-critical one.

When employees see leaders making thoughtful choices, advocating for sustainability, and investing in people even under pressure, morale strengthens. These actions signal that the organization is not just surviving but intentionally planning for resilience. By acknowledging challenges, centering people, and reinforcing purpose with compassion, nonprofit leaders can help their teams remain engaged, resilient, and hopeful—even in the most uncertain seasons.

Question: What are some meaningful ways to celebrate an employee’s work anniversary?

Answer: Recognizing a work anniversary is a great opportunity to show how much you appreciate an employee’s commitment to the success of your organization. Here are some options you might consider:

  • A personal note of appreciation from their manager
  • A video message, digital card, or physical card with messages from their team
  • A spotlight in an internal newsletter, intranet post, or all-hands meeting. The spotlight could include listing the employee’s name and tenure or feature recent accomplishments
  • Personalized gifts based on the employee’s interests and tenure
  • A paid sabbatical after so many years
  • A professional development stipend beyond what’s typically available in your organization

Whatever option you choose, consistency is important to avoid anyone feeling excluded or like they’ve been treated unfairly. You can, however, have different practices based on years of employment or type of role. You also can, and should, treat people differently based on their preferences. For instance, if you have an employee who absolutely hates public attention, a splashy call-out in a meeting might be their worst nightmare rather than a welcome form of acknowledgment. Similarly, not everyone will enjoy a case of fine wine or a gift certificate to a bookstore. Using what you know about the employee to customize their recognition will make it that much more meaningful.

This Q&A does not constitute legal advice and does not address state or local law.

This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.

Today’s nonprofit landscape is marked by significant levels of uncertainty.

Fewer individual donations, delays in the disbursement of grant funding, questions surrounding government funding, and shifting donor priorities have left many organizations in a challenging financial situation. At the same time, nonprofits report they’re also facing increased demand within their communities.

These dueling realities have forced many nonprofit leaders to lean into a different skill set to continue motivating team members as they face a changing environment.

Successful strategies to navigate an uncertain environment

When a nonprofit organization faces uncertainty, a leader may feel pressure to be the one person with all the answers. But that can be a risky approach. Turbulent conditions often require a different set of leadership skills such as: 

  • Flexibility and adaptability. If “tried and true” approaches no longer work, leaders need to shift direction quickly and pivot to new strategies as situations evolve. Don’t be afraid to change course, realign your team, or adjust your approach to various aspects of your nonprofit’s mission. Giving your team more concrete objectives with a shorter timeline can help them commit to your nonprofit’s mission with goals that feel more readily achievable. This flexibility shows team members that their leader is confident about avenues to successfully address the new situation and communicates a message of calm leadership. 
  • Increased communication. Uncertainty can be difficult to talk about but successful leaders lean into more frequent, transparent conversations. By increasing updates and feedback opportunities, leaders help staff, board members, donors, and the communities they serve stay informed, aligned, and connected to the mission. Transparent communication can be critical as you face new challenges. The people relying on your nonprofit are very likely aware of the changing situation your organization faces. Honest and ongoing communication reassures them that you’re focusing on the realities of your situation and lets them know how you’re planning to mitigate the impact of these unpredictable circumstances.
  • Involving your team. Be sure to include your team as you consider different approaches and explore new directions. Leaders often feel like they have to present fully formed solutions but the better way to find solutions that hold more meaning to the entire organization starts with bringing team members into the conversation early on so they feel like a part of the solution. Frontline staff may have unique insights into specific challenges that might help you uncover new ways to meet your mission during changing circumstances. Board members with experience in other arenas may also be able to suggest solutions which help your nonprofit approach the situation in a new way. This experience can help open your eyes to proven strategies that can easily translate into success for your organization’s goals.
  • Encouraging your team to track the pros and cons of new approaches. As staff members implement new ideas, make sure they document how those concepts work and then evaluate the results during team meetings. This results-based approach communicates that you’re approaching the changing times with a practical process that your organization can depend upon. Once your team uncovers new ideas which prove successful, brainstorm ways to enhance the process as you continue fine-tuning any ongoing implementation.
  • Leading with empathy and realism. As the leader of a nonprofit, you understand that your team members are driven by more than just a paycheck. They’re invested in your organization’s mission and feel rewarded when they can see how their efforts make a difference within the community. Times of change require a higher level of empathy with your team. Many of them may struggle with budget constraints that might mean serving fewer people. But communicating honestly to help them understand realistic trade-offs between the funds your organization may have had in the past in comparison to the money available during changing times can help those team members understand the present situation and better handle adjustments in your group’s services.
  • Investing in the morale of your team. Leaders often feel compelled to shoulder the burden of uncertainty for their organization by stoically keeping challenges to themselves. But staff members are generally aware of the uncertainty your nonprofit faces. As a result, you may see team members reacting by taking on more responsibility in an effort to bridge the gap. While this impulse can be helpful in the short term, the tendency can easily lead to staff burnout. That’s why taking care of your people is even more important during times of uncertainty. Keep an eye out for team members who are going the extra mile. Take extra steps to let them know you see their efforts and appreciate their commitment to the mission. You may also find that your entire team is stretched to the limit. During times of change be sure to take the time to recognize them for going above and beyond. Giving a shout-out during staff meetings and or giving hand-written notes can mean a lot to staff members – at no cost to your organization. Leading with emotional intelligence during turbulent situations builds trust and can help retain your top employees – at a time when they may be needed the most.

Discover more leadership tools and resources with UST HR Workplace

As you work to lead your nonprofit through times of uncertainty, you might run into a plethora of concerns you’re not sure how to address. The 60-Day Free Trial of HR Workplace, powered by Mineral is a cloud-based HR solution that empowers nonprofit employers with resources that allow you to do more for your employees.

SOURCES:

“Ask the Expert: Guidance for Leadership in Uncertainty,” Center for Creative Leadership, 5/5/25

“Leading Through Uncertainty:  What Nonprofit Leaders Need Now,” Career Blazers Nonprofit Search

“5 Tips To Grow Your Monthly Giving Program,” DonorPerfect, 2/22/24

For nonprofit organizations, work has always been deeply human. Missions are powered by people who care—about communities, causes, and one another. As some nonprofits continue to navigate returning to the office or shifting to hybrid work, leaders face a challenge that goes far beyond desk space and schedules: how to bring people back in a way that honors empathy, equity, and trust.

Returning to the office is not just an operational decision. It’s a cultural moment—one that can strengthen your organization or strain it if handled without care. Understanding the human side of this transition is essential for nonprofit employers who want to retain talent, protect morale, and stay true to their mission.

Why the Return to Office Can Feel Personal

Nonprofit employees are often motivated by purpose as much as pay. During remote work, staff members may have found new ways to balance demanding roles with caregiving, community involvement, and self-care—making nonprofit careers more sustainable. A return-to-office mandate can leave employees to worry about:

  • Losing flexibility that helped prevent burnout
  • Increased commuting costs amid tight personal budgets
  • Health and safety, especially for immunocompromised staff or those with caregiving responsibilities
  • Whether leadership truly understands their day-to-day realities

Because nonprofits often operate with lean teams, even small drops in engagement or increases in turnover can have outsized impacts.

Listening Before Leading

Before setting policies, the most effective nonprofit leaders start by listening. Surveys, focus groups, or one-on-one conversations can surface concerns you may not see from the top. Key questions to explore include:

  • What has remote or hybrid work made easier for employees?
  • What challenges do staff associate with returning to the office?
  • Which roles truly benefit from in-person collaboration—and which do not?

Listening doesn’t mean every preference can or must be met but being heard builds trust, even when compromises are necessary.

Equity Must Be Part of the Conversation

One of the biggest risks in return-to-office planning is unintentionally creating inequity. Not all employees experience flexibility the same way. Consider how policies affect:

  • Frontline or program staff who may have less schedule flexibility
  • Employees with disabilities or chronic health conditions
  • Caregivers balancing work with family responsibilities
  • Staff who relocated during remote work periods

Transparent decision-making and clear explanations of the “why” behind policies can help reduce perceptions of unfairness.

Rebuilding Culture—Not Just Attendance

If employees are returning to the office, it should be for a reason. Simply recreating pre-pandemic routines may fall flat if staff don’t see added value. Key considerations for using in-office time intentionally:

  • Prioritize collaboration, brainstorming, and relationship-building
  • Offer team days, shared learning sessions, or mission-focused gatherings
  • Avoid requiring in-office work solely for individual tasks that could be done remotely

When the office becomes a place of connection rather than obligation, attendance feels purposeful rather than punitive.

Supporting Mental Health and Well-Being

Nonprofit burnout is not new—but it has intensified in recent years. A return to the office can reignite stress if not paired with genuine support. Nonprofit employers can help by:

  • Encouraging managers to lead with empathy, not enforcement
  • Normalizing conversations about workload and capacity
  • Offering flexibility where possible, such as staggered schedules or hybrid options
  • Training managers to recognize signs of burnout and disengagement

Small gestures—like flexibility during transition periods—can make a meaningful difference.

Communicating with Clarity and Compassion

Change feels harder when communication is vague or inconsistent. Clear, compassionate messaging helps employees understand what to expect and how decisions align with your mission. Effective communication should:

  • Acknowledge uncertainty and mixed emotions
  • Clearly outline timelines and expectations
  • Reinforce how policies support both staff and the communities you serve
  • Invite ongoing feedback as adjustments are made

Employees don’t need perfection—they need honesty.

Leading with Mission at the Center

For nonprofits, a return to the office is ultimately about sustainability—of your people and your purpose. When leaders center humanity alongside productivity, they send a powerful message: that caring for staff is not separate from serving the mission, but essential to it.

By listening deeply, acting equitably, and communicating transparently, nonprofit organizations can navigate the return to the office in a way that strengthens trust, preserves culture, and supports the people who make the mission possible.

Because when nonprofits lead with empathy, everyone benefits—employees, organizations, and the communities they serve.

Question: How can we help our employees write professional goals that are meaningful and motivating to them? Some of our employees don’t know where to begin.

Answer: Getting started can be the hardest part of setting professional goals, especially for employees who haven’t thought about it before or don’t see any value in it. Here are a few ways you can help your employees create and feel connected to their professional goals:

  • Share upcoming projects, team priorities, or company goals with employees. Ask them to envision how they could contribute to these efforts in specific, measurable ways.
  • Encourage employees to think in terms of the results they’d like to achieve or where they have room to improve. Goals completion can be measured by improved accuracy, faster response times, reduced rework, or higher customer satisfaction scores.
  • Ask employees what skills they’d like to develop or what kind of work they’d like to try. Then look for ways to tie that interest back to their current role. For example, if an employee expressed interest in improving their communication skills, you might look at ways to incorporate that learning in their current job duties (e.g., provide additional opportunities to present at meetings).
  • Tell employees that you will reward success (if you can follow through). Ultimately, professional goals will only be meaningful and motivating if they result in a good outcome for the employee. Many companies tie bonuses and promotions to successful goal completion.
  • Remind employees that while professional goals are a tool to help them contribute effectively and ultimately grow in their career, working towards these goals can have immediate benefits. They can reduce day-to-day frustrations, make routine tasks easier, improve both individual and team performance, and result in other benefits.

If you’d like to learn more about goal setting, check out our guide on SMART goals.

This Q&A does not constitute legal advice and does not address state or local law.

This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.

Many of today’s nonprofit organizations are navigating an environment of financial uncertainty. Grants they once relied on may be delayed or terminated, funding priorities may shift, and broader economic conditions are changing influence donor behavior. These combined pressures can lead to budget shortfalls.

On the other hand, some nonprofits are innovating to explore hybrid social enterprise approaches that can help boost their financial stability. These groups utilize their strengths and expertise to develop revenue-generating strategies that support their core mission. Hybrid models can help nonprofits reduce their dependence on traditional donor fundraising by generating additional income as a byproduct of their mission.

Examples of Nonprofits Building Successful Revenue Streams

The most successful social enterprise strategies are firmly built on the organization’s core mission. These hybrid approaches seek to leverage the expertise or unique abilities the nonprofit can bring to a community when developing a separate revenue stream.

Larger nonprofits such as Goodwill Industries and Habitat for Humanity stand as solid examples of this approach. But even smaller, more locally focused groups are turning to social enterprise endeavors to further their missions.

Goodwill Industries Incorporated: Goodwill Industries provides job training, work placement services and other programs for people facing barriers to employment. Their large network of thrift stores is a cornerstone of those efforts and the jobs provided through those stores directly support their social mission. In 2024 alone, Goodwill helped over 140,000 employees overcome challenges and change their lives, while generating over $5.5 billion in sales.

Habitat For Humanity: This national nonprofit works to build affordable housing using a hybrid funding approach that leverages donations, revenue from their ReStores, and in-kind donations to help keep costs down on their home-building projects. ReStores accept donations of home goods such as furniture, appliances, cabinets, hardware, and building materials and are then sold at a profit. Some estimates have placed the income of ReStores at up to 2/3 of a Habitat for Humanity affiliate’s revenue.

Cafes such as A Special Blend and Oaks Coffee: Even smaller nonprofits can leverage social enterprise models to generate revenue for their mission. A Special Blend and Oaks Coffee are two nonprofit coffee shops that support special causes, create local jobs and give customers an opportunity to make a difference with each purchase. 

A Special Blend supports adults with intellectual disabilities by providing them with job opportunities and training in its coffee cafes. This North Carolina nonprofit specializes in high-quality coffees, teas and bagels while supporting an inclusive environment that offers jobs to the 82% of unemployed adults with intellectual disabilities. Their efforts have been so successful that they recently opened a second coffee café branch.

Oaks Coffee donates 100% of profits to local charities and ministries. By building a strong focus on giving back to their local community, this Tennessee-based nonprofit has donated more than $150,000 to local causes.

Key Considerations When Developing a Social Enterprise Revenue Stream

The concept of generating income that’s not tied to donors or fundraising efforts can be especially attractive in today’s challenging economy. But building a clear strategy that delineates nonprofit activities from social enterprise endeavors is critical. Be sure to think through these four considerations as you build out a revenue-generating program for your nonprofit. 

Mission Alignment: Even if your organization could make money running a coffee shop, for instance, how does that align with your group’s core mission? If there’s not a strong correlation, consider other options. 

As an example, let’s say your organization specializes in helping low-income seniors navigate available social services. Your staff are likely experts in the programs and funding available to older community residents. You could develop a senior consultation service for other community members which charges a modest fee for helping families navigate senior living situations as their family members grow older.

External Expertise: Your staff may be extremely knowledgeable when it comes to the challenges and solutions available within your core mission. But launching a social enterprise often brings unique considerations. 

It may be helpful to work with local experts to gather insights into the additional staffing, marketing and operational concerns your group will need to work through when setting up your revenue-generating enterprise. Consider working with these local experts on a short-term consulting basis or invite them to be long-term members of your nonprofit’s advisory group.

Transparent Communication: Launching a revenue-generating social enterprise can certainly provide opportunities for confusion. Developing a clear mission statement, an explanation of how the social enterprise aligns with the nonprofit mission, and communication bullet points can help your team stay focused as they talk about your organization’s new endeavor.

It’s important to be clear in your communications with staff members, stakeholders, and your local community to avoid misunderstandings as you roll out your new social enterprise.

Legal Considerations: As a nonprofit, you’re required to follow specific regulations in terms of tax reporting and keeping finances between your nonprofit activities and the social enterprise endeavor separate. Always consult with an accounting professional as you start to set up your new revenue-generating activities. It’s much easier to set things up correctly from the beginning than to sort through everything later when the IRS wants a clear accounting of expenses and income.

Avoiding Mission Drift Caused by Your Social Enterprise

Developing revenue streams outside of donors and fundraising can certainly be attractive. But at the same time, it’s important to set up guardrails against “mission drift.” Mission drift happens when the revenue-generating enterprise starts to compromise your nonprofit’s mission to help boost revenue.

Maintaining an independent and balanced board can help your nonprofit stay focused on your mission rather than yielding to the temptation of “numbers” over social impact. Significant mission drift could even result in the loss of your nonprofit’s 501(c)(3) status if the IRS finds that your social enterprise is not sufficiently tied to your mission.

SOURCES:

2024 Goodwill Industries Inc. Annual Report

“After 123 Years, Goodwill Hit $5.5 Billion in Sales by Turning Retail Wisdom Upside Dow,” Inc.com, 12/4/25

“Nonprofit Coffee Shops:  How A Special Blend and Oaks Are Creating Positive Change,” tryperdiem.com

“What Are The Most Successful Social Enterprise Models Around The World?”, fundsforNGOs.com

December 12, 2025

This year has brought a number of unique challenges for nonprofit employers—some that may impact planning for 2026 budgets. There is help however! Did you know that 501c3 nonprofit organizations have a unique opportunity to manage unemployment claims costs more effectively than their for-profit counterparts. By streamlining this expense, you could save your nonprofit thousands of dollars annually.

Download UST’s 2025 Unemployment (UI) Toolkit and uncover a curated collection of tools and resources designed to help your nonprofit mitigate unemployment risk and claims costs while optimizing workforce strategies. With everything from how to protect your state unemployment tax rate, tips for preventing retaliation claims, and a state-by-state unemployment reference guide, this toolkit has everything you need to reduce costs and safeguard your funding.

You’ll also discover:

  • Fraud Prevention Tips: Avoid fraudulent claims and strengthen UI integrity.
  • The Claims Lifecycle: Uncover the ten steps of an unemployment claim.
  • Hearing Best Practices: Master unemployment hearings with strategic strategies.
  • Retention Strategies: Strengthen your workforce and avoid turnover costs.
  • Workforce Solutions: Hear exclusive insights from UST workforce experts. 
     

Equip your nonprofit with strategies that simplify unemployment management, so you can focus on your mission with confidence.

To access more HR-specific articles, templates and checklists, you can sign up for a FREE 60-Day Trial of UST HR Workplace today! You’ll also gain access to live HR certified consultants, 300+ on-demand training courses, and a virtual compliance library.

Question: We’ve decided to bring employees back into the office a few days each week and change our remote work policies. Some employees have been grumbling about this change. What should we do?

Answer: Any time you make a change like this, you can expect a certain amount of employee complaints. People aren’t inherently great with change, and the benefits of remote work can be hard to part with. Given that, instead of trying to shut down complaints (which could potentially run afoul of employees’ rights under the National Labor Relations Act), we recommend a few things you can do to help bring employees onboard with the idea.

One way to do this would be to hold a virtual meeting where you share your reasons for returning to the office and invite employees to share—during the meeting or afterwards—what support they may need to make the return as smooth as possible.

During this meeting, be transparent about why you’re adopting a hybrid policy, noting both the benefits to the organization and to employees. Let them know that you understand that this change will cause some disruption to their lives and that you want to support them during the transition.

To help employees feel better about returning to the office, you might also consider offering perks such as a stipend for parking and commuting costs, a well-stocked fridge and snack drawer, or a more flexible in-office dress code.

While you will never be able to stop all the complaining, providing transparent communication and allowing employees to be heard is essential to gaining their support for any policy changes.

This Q&A does not constitute legal advice and does not address state or local law.

This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.

Artificial Intelligence (AI) tools aren’t reserved exclusively for Silicon Valley giants or big corporations.  More than 80% of nonprofits now report that they use AI to help streamline their operations, improve communications, multiply the impact their staff can achieve, and better deliver on their mission.

In fact, small nonprofits often report high levels of AI engagement.  This may be a reflection of the importance of efficiency for groups where staff members often wear multiple hats.

At the same time, many nonprofits have leveraged the powerful data analysis opportunities available through AI to help them make better decisions on where to allocate their organization’s limited resources.  These insights are helping nonprofits deliver greater mission impact – even with limited budgets.

5 Ways Today’s Nonprofits Are Working Smarter with AI

Incorporating AI into your nonprofit’s workflow can help smaller teams confidently reach bigger mission goals.  By using AI to automate routine tasks, your organization can free up staff bandwidth so they can devote their time to higher-value work.  Consider these time-intensive tasks as you think about ways your group might benefit from using AI:

  1. Grants.  Whether your group actively applies for grants to help fund projects or you’re responsible for evaluating grant applications to select recipients of funding, AI can help streamline the process.  Tools such as ChatGPT or Microsoft Copilot can help develop initial answers to grant questions or suggest ways to incorporate your organization’s strengths into grant responses.  For groups needing to sort through grant applications, AI can be used for an initial pass to help identify applications which may best meet the goals of a grant.
  • Content creation and marketing.  Maintaining a regular cadence of social media communications or developing effective marketing materials to publicize your nonprofit’s events often requires significant time from staff members.  AI tools such as ChatGPT, Claude and Canva can be instrumental for groups that need to quickly develop professional-looking materials on a budget.
  • Fundraising and donor engagement.  Many nonprofits leverage AI-based data analytic tools to help identify high-value donors, uncover predictive giving patterns, and to develop customized donor outreach campaigns.  The American Cancer Society achieved a 400% increase in donor conversion rates by working with AI machine learning to optimize donor communication channels. 

But these strategies aren’t only for larger nonprofits.  Smaller groups like Austin Pets Alive! use AI for fundraising emails and social media posts – especially during critical periods.  The result has been an increase in funding to help them further their mission.

  • Automation of repetitive tasks.  Many organizations use free AI tools like ChatGPT or Google Gemini to make administrative tasks like data entry more efficient.  Staff members at many nonprofits spend hours drafting reports highlighting progress toward their mission or the results of recent events.  Tools like ChatGPT can help develop initial drafts of these communications which can then be quickly edited into a final version.
  • Volunteer coordination and communications.  AI matching programs such as Golden or VolunteerMatch can help your nonprofit pair volunteers with opportunities that fit their skills and interests.  Matching people with more meaningful work that aligns with their skills can result in a more dedicated and engaged team of volunteers. 

At the same time, automated outreach regarding upcoming opportunities and reminders of events a volunteer has committed to participate in can be an effective way to reduce no-shows … especially during big events which require significant levels of volunteer support.

AI can deliver game-changing efficiency for nonprofits – especially for smaller groups that operate with leaner teams and smaller budgets.  Streamlining tasks which may have taken many hours or days into efficient solutions can help organizations focus on executing their mission instead of becoming bogged down in day-to-day operations minutia.

Responsible AI Implementation

Stories of AI that went awry are common.  As a result, it makes sense for nonprofits to take a measured approach as they begin using AI tools.  While this technology can be incredibly efficient in developing first-draft materials, it’s critical to keep a human in the loop to review output and make edits. 

For organizations considering the adoption of AI tools, first develop strategies to strengthen your group’s technological leadership.  If your budget cannot afford full-time IT staff, brainstorm opportunities to add tech experience to your board of directors or share IT resources with other groups your nonprofit may already be allied with.

In addition to sharing tech staff, explore projects where your organization could collaborate with other nonprofits.  Setting up an AI working group with other nonprofits in your area can be a smart way to accelerate your learning and develop new ways to use AI more efficiently within your organization.

If you’re looking for help in developing HR forms, training tools or checklists for your nonprofit, take advantage of your FREE 60-day trial of HR Workplace powered by Mineral.  This valuable tool helps nonprofits navigate challenging HR situations and develop helpful training materials to provide better training for new staff members.

SOURCES:

“How Nonprofits Are Using AI for Greater Social Impact in 2025,” sigmaforces.com, 9/29/25

https://www.sigmaforces.com/post/nonprofits-ai-social-impact-2025

“How nonprofits use AI: The 2025 AI for Humanity Report”, Ben Matthews, 10/1/25

https://benrmatthews.com/how-nonprofits-use-ai-the-2025-ai-for-humanity-report

“AI Can’t Be Ignored: Exploring the Opportunities for Nonprofits and the Social Sector”, bridgespan.org, 7/22/25

https://www.bridgespan.org/insights/exploring-ai-opportunities-for-nonprofits-and-the-social-sector

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Privacy Policy and Terms of Use

UST maintains a secure site. This means that information we obtain from you in the process of enrolling is protected and cannot be viewed by others. Information about your agency is provided to our various service providers once you enroll in UST for the purpose of providing you with the best possible service. Your information will never be sold or rented to other entities that are not affiliated with UST. Agencies that are actively enrolled in UST are listed for review by other agencies, UST’s sponsors and potential participants, but no information specific to your agency can be reviewed by anyone not affiliated with UST and not otherwise engaged in providing services to you except as required by law or valid legal process.

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