The cheering from the crowds in Times Square barely faded away before the trend pieces hit the internet. This is one of them. However, unlike anything you’ve read before, these trends for 2024 are focused on nonprofit organizations. We’ve followed the major news stories of the past several months to bring you a glimpse of what we believe to be the most significant trends of the new year for nonprofits. Most affect human resources and management. Which of the following do you think are most applicable to your organization?
Five Trends for the New Year Affecting Nonprofits
- Unionization
- Remote Work and Management
- Shortage of Experienced Executives
- Reporting Improvements
- AI
Trend 1: Unionization
The Hollywood screen writer’s strike of 2023 brought the notion of unionization to the forefront of public consciousness once again. Formerly the purview of manufacturing, the notion of workers banding together to ensure fair treatment has now percolated through all industries—including nonprofits. And while the writers’ strike was more about fair payment and ensuring their intellectual property was respected, nonprofits are also facing rumbles from their workforce. Most of these rumbles come from workers who feel their requests for additional resources aren’t being met. Management—and Boards— may recognize the need for additional help, but with the current economic environment, many managers have asked staff to wait for added resources. Whether or not this waiting period ends with a further push for unionization or not remains to be seen, but the signs are there that even nonprofits may find themselves discussing the pros and cons of unionization soon.
Trend 2: Remote Work and Management
Since the start of the pandemic, the topic of remote work (and management) has been a permanent fixture in the news. Whether its companies announcing they’re moving back on campus or workers demanding more flexible arrangements, remote work has increased and is here to stay.
Nonprofits should embrace this trend. Not only is remote work better for workers, but it can also be better for organizations, too. Organizations can tap into a wider employee pool by offering remote work options. Workers who never considered joining a nonprofit may be open to it if they view remote work options as a bonus.
Online project management systems, daily check ins, and better virtual communication through instant messaging apps and cloud-based software can all make remote work a seamless and effective option for nonprofits.
Trend 3: Shortage of Experienced Executives
Baby Boomers have retired, or will retire soon, and Gen X is following quickly on their heels. Additionally, many people in positions of leadership are experiencing significant burnout. Fewer want the added responsibility of executive positions. This has led to a shrinking pool of experienced people willing to lead nonprofits. If you’re recruiting for senior leadership positions this year, allow extra time, as it can be tough to find the right candidate. As always, consider grooming qualified candidates from within—the more you provide a stable promotion track and help employees gain the necessary skills for leadership, the better your organization will be.
Trend 4: Reporting Improvements
Gone are the days when some organizations tweaked their reports to allow some “flexibility” in financing. With both an emphasis on audits and modern computing, fuzzy reporting logic is a thing of the past. Instead, look for improvements in reporting including enhanced accuracy, greater accountability, and improved analytics thanks to affordable cloud computing and public demands for transparency.
Trend 5: AI
Artificial intelligence (AI) burst into public consciousness last year, and it continues to dominate headlines. The explosion and proliferation of generative AI tools has made them more accessible than ever, but should your organization avail itself of these innovations? There are many ethical, legal, and similar considerations around the smart use of generative AI. If your organization doesn’t have an AI policy in place, it’s time to think about one. Your board and legal advisors may wish to weigh in on the ethical and legal aspects of utilizing public generative AI tools, such as ChatGPT, and ensuring that proprietary information isn’t compromised in the tool. Because what ChatGPT ingests in the form of content or queries becomes its property, not yours. This is just one small example of the many gray areas surrounding this new tool, and one which your organization must consider before employees start using it without guidance. So, for the new year, consider guidelines for employees in the use of external AI tools, and whether adding AI-based platforms to your software stack can be a help or a hindrance.
Move Ahead with Confidence into the Future
As we move ahead into the new year, we look forward to the future. Even if some of these trends are unsettling, one thing is certain: nonprofits continue to add valuable contributions to society and to the economy. Each of these trends may contribute more than first meets the eye. It’s all in how you look at things.
Welter Consulting
Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information.
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