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:
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:
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:
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:
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:
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:
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:
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:
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:
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:
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:
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:
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
“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
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:
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:
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.
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
Nonprofits across the United States are operating in an era of deep uncertainty. Funding is the lifeblood of any nonprofit. Yet, many organizations find themselves navigating a complex and unpredictable financial environment—delayed or canceled government contracts, shifting philanthropic priorities, and fewer individual donors. That mix — funding instability plus heavy dependence on traditional revenue sources like government grants and a small pool of major donors — creates real risk. Let’s dive into what’s happening, why it matters, and practical steps nonprofits can take now to become resilient and even thrive.
What’s Changed
Why dependence on “traditional” donors is now risky
Traditional donor mixes — heavy on government grants, a few major foundations, and repeat individual donors — create single-point failures. When public grants are paused or a foundation refocuses, organizations experience immediate cash shortfalls. The sector’s recent history shows these disruptions can be sudden (administrative decisions, new oversight reviews) and large (multi-million-dollar grant cancellations). That unpredictability reduces the organization’s ability to plan multi-year programs, retain staff, and invest in growth.
How to Succeed in the Current Environment
1) Treat revenue like a portfolio — diversify intentionally: Think of funding as you would an investment portfolio. Add revenue streams with different risk profiles: individual recurring giving, small-dollar acquisition, foundation grants, corporate partnerships, earned income (program fees, social enterprise), and reserves/investment income. Evidence shows diversified revenue mixes improve fiscal stability and long-term outcomes. Start by mapping your current mix and assigning a risk score to each stream (likelihood of disruption × impact).
Something to Test: Run a 12-month vulnerability test (what happens if one major grant is cut?) and set a goal to reduce any single revenue source to no more than X% of budget over 2–3 years.
2) Build stronger recurring individual giving: Small recurring gifts are lower-risk and scalable. Programs that convert one-time donors into monthly supporters increase predictability and community ownership. With digital tools, acquisition costs have become more manageable; focus on stewardship and clear impact reporting to lower churn.
Something to Test: Launch a “join the monthly supporters” campaign tied to a clear project, and measure lifetime value vs. acquisition cost.
3) Invest in earned-income or social-enterprise pilots: Some nonprofits have insulated operations by creating fee-based services or products (training, admissions, contracted services) that align with their mission. These shouldn’t replace philanthropy but can provide flexible cash and reduce sensitivity to grant cycles. Pilot small, measure contribution margins, and be disciplined about treating earned income like a business line.
Something to Test: Identify one service you already offer that could be packaged and sold to schools, businesses, or municipalities.
4) Deepen foundation and corporate relationships strategically: Foundations and corporate partners are more likely to underwrite innovation, capacity building, or multi-year initiatives if you can show data, measurable outcomes, and partnership value. Move beyond transactional asks — offer co-branded programs, employee engagement, or reporting dashboards that demonstrate ROI for partners.
Something to Test: Create a one-page “partner value” packet that shows outcomes, recognition opportunities, and concrete engagement options.
5) Strengthen financial operations: reserves, cash forecasting, and scenario planning: Operating reserves, rolling cash forecasts, and a “budget under three scenarios” approach (best, baseline, stress) are essential. Reserves give breathing room when grants are delayed; forecasts reduce surprises and help you make staffing decisions earlier.
Something to Test: Build a 90-day cash forecast, set a modest reserve target (e.g., 3–6 months of operating expenses), and run one stress scenario with leadership and the board.
6) Advocate — and plan for policy risk: When federal or state policy changes threaten funding streams, coordinated advocacy — with state associations, coalitions, and legal partners — can blunt or reverse harmful moves. At the same time, keep contingency plans ready: cross-trained staff, contract language that limits exposure, and alternative suppliers/partners.
Something to Test: Join a state or national nonprofit association if you’ve not already, and make sure you receive policy alerts.
7) Communicate impact with data — make donors part of the solution: Clear, frequent, and data-driven communication helps donors see why stability matters and encourages renewal. Share short impact metrics, client stories, and how flexible dollars are used — flexible funding is often the most valuable in times of stress.
Something to Test: Create a one-page impact snapshot you can email monthly to major donors and post on social.
A realistic timeline and mindset
Resilience is built gradually; a mix of “quick wins” (recurring giving campaigns, cash forecasts) and medium-term shifts (earned income pilots, diversified major-donor cultivation) can help change your risk profile in 6–24 months. Expect some experimentation and measurement — some pilots will succeed while others will teach important lessons.
Final thoughts
Dependence on traditional donors and predictable government awards worked when those systems were stable. Today, political shifts and changing philanthropic dynamics demand a different approach: purposeful diversification, tighter financial discipline, stronger donor relationships, and readiness to pivot. Nonprofits that treat funding like a managed portfolio — while staying true to mission and community — will be best-positioned to keep delivering results even when policy or markets turn turbulent.
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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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