Three things C-Suite and Senior Leaders in the Non-Profit and Philanthropic Sector should be ready for and how you can take action now.
1. AI: from scary nightmare to practical tool
We’ve heard and read about the power of AI for quite some time. This year marks the turning point when you either start using it, or you get left behind. Many of your existing platforms have AI built into the system. For example, Microsoft has Copilot, your ‘AI companion,’ built into the top right of their browser. Their AI designer, called appropriately enough, ‘Microsoft Designer,’ can create images and graphics, traditionally the purview of your graphics department or outsourced marketing team, with just a few clicks.
As someone who has been playing with these tools for a few years, they have only gotten better, smarter and less ‘machine-like.’ Like anything, it’s best to learn by doing. You can’t wait for an AI playbook, your staff should be experimenting with these tools now to make their work more efficient and to save time and money. Start by asking them how they are using AI. If they aren’t, point them toward the existing and free resources. Then ask them to start experimenting with simple commands such as document or email editing. Their ability to leverage the technology will increase as they become more comfortable with it.
As younger people come into the sector, we must have a ready and willing technology platform for them to integrate into. Digital natives will quickly leave and or won’t go into the nonprofit sector if it is viewed as mired in old ways, reluctant to change or worse yet using antiquated processes to obtain, share and act on information.
Nevertheless, there is no plug and play solution but there is a thirst. According to a 2017 report from the Bridgespan group, eighty percent of the nonprofit leaders surveyed cite innovation as an urgent imperative for achieving large-scale impact but only 40 percent say they have the capacity for it. We’ve arrived at the oasis.
2. The private sector’s ability to steal your staff will wane
Staff recruitment and retention has been a constant management headache since the pandemic. Now, with the private sector starting to dial back on remote work options, calling staff back to the office full-time and taking away paid time off for sick pets (yes!), their ability to recruit your staff may wane. Layer in a large cohort of leaders preparing for retirement, and leadership pathways in the sector will emerge for senior staff who have been waiting and ready to take the helm for a while.
In the interim, create leadership opportunities for your existing staff. Target these opportunities to those who are ready and willing. You can even go an extra step and conduct internal testing (Enneagram, DISC, etc.) to pre-identify staff with an inclination toward a leadership role.
If you look for opportunities to leverage new technology (see above), you may create additional incentives for your workforce.
3. The non-profit and charitable sectors will be placed under the microscope
Senator Charles Grassley has been a long-time advocate of ending tax breaks for charitable donations, revoking the non-profit status of hospitals and generally trying to create new revenue from the charitable sector. With full control of the branches, watch for increased efforts to draw attention to the tax code that encourages donations.
Prepare by shoring up your internal administrative and finance functions in anticipation of increased oversight and scrutiny. In the meantime, continue to communicate the value proposition of your agency’s work, especially to private donors. Lastly, if you’ve been holding off on any gifts, think about making that gift now before the laws are revised, changed or updated.