While employee retention and recruitment are longstanding challenges across industries, nonprofit organizations face distinct constraints. Limited funding often restricts their ability to offer competitive salaries and benefits — particularly during periods of wage inflation and heightened competition for talent. At the same time, workforce pressures, such as the rising cost of childcare and limited job flexibility, are placing additional strain on employees. Coupled with increasing community needs and lean staffing models, these conditions contribute to elevated levels of burnout. As a result, nonprofits experience high turnover, with many professionals leaving the sector altogether in pursuit of more financially sustainable opportunities. Despite these challenges, even the most resource-constrained organizations can implement practical strategies to foster a healthy culture, retain staff and attract talent.

Benchmark salaries

In a competitive job market, it is essential for organizations to offer competitive salaries and benefits. Leaders should research what other similarly-sized organizations in the region offer, in terms of pay and benefits, and develop a plan to align the compensation structure with the market. This information can often be found in an organization’s Form 990 (Schedule J) or through salary reports. If compensation falls significantly below market, it will be challenging to attract and retain staff. It may take time to allocate funding, but few organizations can run well without the right team in place. In the interim, one-time bonuses can help bridge gaps as more sustainable funding sources are secured.

Boost benefit packages

Enhancing benefit packages can be an attainable, cost-effective solution for nonprofits in attracting and retaining staff. Health insurance, paid time off (PTO) and retirement plans are standard offerings, even in the nonprofit sector. According to the PPI Benefits Solutions 2025 Nonprofit Employee Benefits Survey Report, mental health support, flexible work arrangement and financial wellness programs are now central tenants of benefits packages.[1] Offering financial education can improve retirement readiness while also demonstrating an organization’s commitment to their employees’ well-being. PNC Institutional Asset Management® (PNC IAM) retirement solutions provides education consulting services that can be customized to the needs of the organization and minimize administrative burden. Providing generous PTO and flexible work arrangements have proven extremely attractive to employees, with 95% of organizational respondents offering flexible work options.[2]For nonprofits that are unable to offer a remote work option, consider free on-site parking, fuel and public transportation stipends or additional PTO.

Broaden the candidate pool

If struggling to find strong candidates, consider applicants without direct nonprofit experience but with strong transferable skills. For example, someone with sales or marketing experience may be well suited for a fundraising role. Increasingly, nonprofit organizations are looking to “second chance hiring,” recognizing that the estimated 80 million Americans with criminal records are a massive pool of untapped talent.[3] The Work Opportunity Tax Credit gives employers a federal tax credit for hiring ex-felons, and nonprofits who serve individuals impacted by the incarceration system may benefit from having employees with lived experience.[4]

Many nonprofits are sharing or outsourcing administrative roles such as human resources, information technology and finance. For example, PNC IAM offers outsourced chief investment officer solutions for nonprofits that do not have the budget or need for a full-time, in-house investment advisor. Fractional or shared staff offer a cost-effective way to fill talent gaps.

Educate, develop and train

Training and education opportunities can prove appealing, especially for younger workers wanting to build their skills. Some nonprofits attract talent by offering education stipends and on-the-job experience. If the budget does not allow for formal training or tuition reimbursement, consider an employee book club, a peer-learning program, mentorship opportunities or a job-shadowing program. Not only are these attractive benefits, but they also strengthen the overall skillset and culture within an organization.

Foster a healthy culture

While many nonprofit workers are willing to accept below-market pay for a mission that inspires them, burnout is a common issue for nonprofit staff. Community needs are high, and nonprofit jobs can sometimes be mentally and emotionally demanding. Actively seek employee feedback and encourage their input in both their day-to-day work and the broader mission, helping them feel valued while fostering a stronger sense of personal investment in the organization.

“Employee burnout was a top three concern for nonprofits surveyed in 2025, with 36% of organizations identifying it as a key challenge.”[5]

Leaders should consider the following questions in assessing overall organizational culture.

Culture checklist:

  • Does my staff have an opportunity to provide input on their roles and the direction of the organization?
  • Do we have a culture of feedback and psychological safety that makes them feel comfortable doing so?
  • Does my staff have accurate job descriptions that align with their day-to-day responsibilities and their skills?
  • Does my staff have realistic goals and expectations?
  • Do we have a culture of inclusion and belonging as well as diverse representation at the decision-making table?
  • Are my employees using their PTO? Are they able to disconnect completely from work regularly without having to check email or be “on call”?
  • Do employees see a path for growth and development within the organization? Has a manager discussed career advancement with each of their team members?
  • Do we create opportunities for employees to collaborate across teams and feel connected to the broader organization?

If you answered “no” or “I don’t know” to any of the above, you may be at risk of losing employees. While praise and tokens of appreciation are important, they will not combat an unhealthy corporate culture.

Succession planning

Even with a well-executed recruitment and retention plan, some turnover is part of normal operations as employees move on to new opportunities or retire. Taking steps to properly plan for these vacancies can help ease the transition:

  1. Plan for all levels – While it is common to have a succession plan in place for the most senior levels, outline a plan for other critical roles such as mangers, fundraisers and critical administrative staff.
  2. Cross train – Consider training a backup for critical tasks and roles in the case of a sudden departure.
  3. Create a handbook – Establish a resource that outlines central processes and safely store information such as login instructions and vendor contacts.
  4. Prepare a communication plan – Proactively outline how you will share the news of a senior-level or donor-facing employee exit to avoid uncertainty among stakeholders or damaging donor relationships when a key point of contact departs.
  5. Consider interim leadership – Finding the right person to lead your organization can take time. To fill the gap, consider hiring a short-term replacement.

Recruitment, retention and succession planning have always been an important part of an organization’s operations, but today’s ever-changing markets and shifting workforce have shown the importance of having a strategic plan in place. With a bit of foresight and planning, even the leanest nonprofits can attract and retain a productive, satisfied staff.

Nonprofit Strategy & Solutions Group

PNC’s Nonprofit Strategy & Solutions Group serves as a dedicated partner committed to empowering nonprofit organizations to achieve their mission. By combining national expertise with local knowledge, we provide comprehensive education and advice on governance, philanthropy and financial sustainability — going beyond asset management to deliver actionable insights that address the most pressing challenges nonprofits face. With our deep community ties, practical nonprofit leadership experience and strong local market presence, we provide meaningful solutions that optimize resources and deliver a sustainable impact.

For more information, contact the team at IAMNonprofitStrategy@pnc.com.