Change is coming. It’s no longer a matter of “if” but “when.”
We see ten major shifts likely heading your way. But these disruptions don’t have to be disruptive. In fact, they can be tremendous opportunities. If you’re ready.
Read on to learn what these disruptions are and what you can do to prepare and assess your readiness for change.
1. Executive Turnover
You know good leaders are essential to meeting your mission. So, what happens when your executive director or key leaders start thinking about their next chapter? It’s unsettling, to say the least. That’s why now’s the time to start thinking about succession planning to ensure your organization doesn’t miss a beat when transitions happen. Has your board made sure everything’s in place—from leadership continuity to keeping the team’s morale high?
Think your CEO isn’t ready to move on…think again. Three national studies in the past decade revealed that up to 75% of all nonprofit executives plan to leave their positions during the next five to seven years (that means many are ready now), and 75 million Baby Boomers are expected to retire by 2030.
2. Board Leadership Transition
Just like your executive team, your board, especially the board chair, plays a key role in your nonprofit’s direction. When board members step down or leadership changes, you risk losing momentum.
How prepared is your board for a leadership transition? Do your bylaws include officer terms and a clear process for selection?
3. Regulatory Shifts
With U.S. elections this fall, regulatory shifts in ESG, taxes, immigration, trade, and more will create new opportunities, obstacles, or compliance challenges for your nonprofit.
According to the National Council of Nonprofits, “The expiration of key provisions of the 2017 tax law at the end of 2025 sets the stage for one of the most consequential tax debates in a generation.”
Is your board ready to help you stay ahead of these shifts, ensuring you’re not just compliant but confident in your operations? If your board has never engaged in advocacy before, are they ready to do so now?
4. Economic Uncertainty
The economy has been especially unpredictable the last four years and shows few signs of stabilizing, especially with U.S. elections looming. We’ve seen how economic shifts can tighten budgets and make fundraising tougher, especially with increasing interest rates and recession predictions coming and going every month.
Is your board ready to explore new revenue streams, support cost cuts, or pursue new kinds of donors and partners?
5. Changes in Giving Patterns
Individual donors aren’t giving the way they used to, and many now shun what they see as “old-fashioned” fundraising tactics. Many individuals and corporations have adopted a “wait-and-see” attitude on non-essential spending, including charitable donations, postponing decisions until after this fall’s U.S. elections.
Board members play vital roles as donors, fundraisers, and ambassadors for your organization. Are they ready and willing to change their approach to attract future donors? To let go of a much-loved annual gala that’s no longer producing results?
6. Shifting Donor Expectations
Individual donors want a stronger connection to the organizations they support. There’s a growing trend for customization and personalization across all industries, including our interactions with the causes we volunteer for, advocate for, and give money to.
Institutional donors are increasingly shifting to trust-based philanthropy, big bets, and general operating support grants.
When was the last time your board updated its gift policy? Considered the investments required to stay ahead of or meet shifting donor expectations? Dreamed up the “moonshot” you’d pursue if the organization received a sudden windfall? Or debated the value of taking a risk on that moonshot versus saving for a rainy day?
7. AI Adoption
Artificial Intelligence is no longer a thing of the future—it’s here, there, and everywhere. Policies can’t keep up with the pace of development, and the full implications of AI – on staffing, fundraising, the causes you champion, and the people you serve – are unclear. Multiple studies show less than half of nonprofits use AI at all.
Has your board explored the risks and benefits of the latest technology? What about the impacts on and implications for the people your organization serves, your donors, and your partners? What level of risk is your board willing to take on technology that might (or might not) deliver a worthwhile ROI?
8. Staffing (Turnover, Shortages, Layoffs…)
Factors like stress, burnout, wage stagnation, and salary competition have always sparked turnover in nonprofit staff. Technology, demand for programs and services, labor market imbalances, and economic uncertainty may all change the number and type of employees that nonprofits need. Many employers now struggle to manage five generations in the workplace at once; in the next 18 months, Boomers will become less influential as more retire, and Gen Z will increase its numbers, shaping work and workplaces.
According to the 2024 State of Nonprofits report, almost 60% of nonprofit leaders identify staff-related concerns — including but not limited to losing staff to organizations with more competitive compensation and benefits, general lack of staff capacity and burnout, and internal/cultural issues — as one of their organization’s biggest challenges.
Has your board explored new and different ways of meeting your mission or delivering core services with fewer staff? What about the risks of persistent staff burnout or internal conflict? Policy changes to attract and retain Gen Z employees?
9. Cybersecurity Threats
Digital threats are everywhere, with bad actors getting smarter, bolder, and more aggressive every day. Cybersecurity is no longer optional—it’s essential. Too many nonprofits under-invest in technology upgrades, technology infrastructure, IT staff or support, and staff training/cyber-security awareness.
According to Forbes, 343 million+ people were victims of cybersecurity attacks in 2023, and 94% of organizations reported email security incidents during that time. Is this risk on your board’s radar? What’s the crisis plan if (when!) there’s an incident?
10. Demand for Programs and Services
Societal changes and government policy shifts cause demand for nonprofit programs and services to fluctuate. Fundraising and funding availability impact how well you can meet those changing demands or adapt when those you serve need something different or want their needs met in a different way.
A 2024 study from Forvis Mazars reports 74% of nonprofits are planning to eliminate some of their current programs and services over the next one to two years. Is your board protecting sacred cows that no longer deliver results? Has your board done scenario planning for a significant increase or decrease in demand for your services?
These disruptions can be opportunities to strengthen, grow, and differentiate your nonprofit. Ensure your board has the insights and tools to navigate whatever comes next. Sign up for early access to our upgraded Change Readiness Index™ for nonprofit boards, and make sure your organization is ready for anything.
