Securing and Retaining The Nonprofit Workforce Staff and Leadership
Nonprofits in Virginia play an essential role in the economy, including in the Commonwealth’s workforce, providing a wide range of jobs like
education, tourism, healthcare, workforce development, social services and the arts. Nonprofits play a critical role in helping keep our community
healthy and vibrant, and can do so by employing tens of thousands of individuals across the Commonwealth.
Responsible for close to 10% of Virginia’s employment, nonprofits are contributing to the overall economic stability and mobility of the economy
while also being integral to the health and well-being of Virginia’s Communities. In the Center for Nonprofit Excellence’s Nonprofit Sector report,
74% of respondents indicated an urgent need for growing leaders across their organization.[1]
However, like many employers, nonprofits in Virginia face challenges when it comes to recruiting and retaining qualified staff. In particular, access
to affordable childcare and stable housing has become increasingly critical to the success of nonprofit organizations in attracting and keeping
talented employees.
Addressing these issues is essential to attracting and retaining talent, particularly for employees who may be managing family responsibilities or
dealing with housing insecurity. As these fundamental needs of child care and housing are addressed, that will play a significant role in helping
nonprofits create a more sustainable, effective workforce that can continue to meet the evolving needs of Virginia’s communities. This investment
in employees can lead to stronger, more resilient organizations and a greater collective impact for the Commonwealth.
Childcare and the Nonprofit Workforce
According to the Virginia Chamber of Commerce, child care in Virginia is often prohibitively expensive, with families paying a significant portion of
their income for quality care.[2] For nonprofit employees, this expense can be a major barrier to full participation in the workforce. The National
Council for Nonprofits reported in a 2023 survey on Nonprofit Workforce that lack of available and affordable child care is a major factor impacting
nonprofit recruitment and retention.[3] Further, respondents in the Nonprofit Sector Report indicated a lack of accessibility to childcare including
33% of volunteers and 23% of nonprofit staff.[4]
Economic Development specialists at Virginia Tech reported in 2024 that child care is one of the leading causes of absenteeism and employer
turnover and is costing Virginia over a billion dollars annually.[5] And JLARC reports that though this is impacting families across the socio-
economic scale, lower-income families have an even higher rate of inability to access affordable childcare.[6]
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[1] Center for Nonprofit Excellence, Nonprofit Sector Report, 2023
[2] Virginia Chamber, Access to quality and affordable child care is essential to Virginia’s current and future workforce and the businesses that
employ them by Kathy Glazer and Mike Chinn
[3] National Council of Nonprofits, Nonprofit Workforce Survey Results, 2023
[4] Center for Nonprofit Excellence, Nonprofit Sector Report, 2023
[5] Virginia’s Child Care Crisis: We’ve got to work together to find solutions, Oct. 2024
[6] Virginia Mercury, State Report finds Child care is unaffordable for most VA. Families with young kids, 2023
Housing and the Nonprofit Workforce
Access to affordable housing is another significant factor in employee recruitment and retention. Housing costs have been on the rise for the past
two decades.[2] According to the Virginia Realtors, those increases have a big impact on younger Virginians, our future workforce; and with
homeownership there is a disproportionate impact between races that is continuing to widen.[3] Housing costs have been rising steadily,
particularly in urban areas such as Northern Virginia, Richmond, Hampton Roads, and Charlottesville. The high cost of rent and homeownership
can make it difficult for nonprofit employees, particularly those working in entry-level or mid-level positions, to secure affordable housing.
The National Council for Nonprofits 2023 Workforce Survey reported that some nonprofit employees leave their jobs and move from their
communities, as a result of the rising cost of housing. This also prevents prospective nonprofit employees from taking job offers.[4]
The 2023 Virginia Housing report on Housing as an Economic Development Strategy for Virginia reported,
“Inadequate housing supply hampers workforce mobility, limits job opportunities, and negatively impacts a state’s economic competitiveness.
”[5]
As nonprofits work to recruit new workers and retain current employees, access to affordable housing in the Commonwealth is crucial for
securing the needed workforce to address the ever evolving needs of the communities nonprofits are serving.
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[1] Virginia Chamber, Access to quality and affordable child care is essential to Virginia’s current and future workforce and the businesses that
employ them by Kathy Glazer and Mike Chinn
[2] U.S. Department of The Treasury, Rent House Price and Demographics, June 2024
[3] Virginia Realtors, Virginia’s homeownership rate is on the rise, but tight inventory and climbing prices, who is missing out?, 2024
[4] National Council of Nonprofits, Nonprofit Workforce Survey Results, 2023
[5] Virginia Housing Commission, Housing as an Economic Development Strategy for Virginia, 2023
Charitable Giving
How Federal Policy is Impacting the Commonwealth
There is an ever increasing need for Charitable nonprofits to provide community services. However, with inflation and costs increasing and
private donations and the number of donors is going down, it will be difficult to continue meeting the demand for services. Community needs
and services have always required a multi-pronged approach that includes the work of the nonprofit sector and government services.
For more than a century, the charitable tax deduction has encouraged Americans to give more of their income to the public good, devoting it to
their community’s needs rather than their own. An analysis by the Philanthropy Roundtable finds that for every $1 increase in the tax benefit,
charitable donations rise by a statistically significant $1.30.[1] These donations provide vital resources to charities serving those in need and
supporting communities as a necessary partner with the public sector.
However, fewer Americans now have access to the charitable deduction than at any time in its history. Currently, taxpayers must itemize to
deduct their charitable donations. The percentage of American taxpayers who itemize has fallen from an average of 30 percent in 2017 to an
average of 7.5 percent in the years that followed.[2]
The doubling of the standard deduction, a policy designed to simplify tax filing for most Americans, has had the unintended consequence of
leading to a permanent reduction in charitable giving by American households who no longer itemize.
Information provided by the National Council of Nonprofits, Charitable Giving Tax Incentives, Sept 2024
Charitable Giving: What State Lawmakers need to know
As advocacy is happening on the federal level with H.R. 3435/S.566 to address the challenges with the standard deduction, State lawmakers
should be aware of the far-reaching implications this shift has on nonprofit organizations in Virginia.
The loss of tax incentives may not only slow the growth of charitable giving, but it could also disrupt the stability of nonprofit revenue
streams, especially for organizations that depend on these donations for core services.
For states looking to bolster the nonprofit sector and mitigate the impacts of the federal policy change, there are several measures that can
be considered.
Some states, for example, have adopted tax credits or other incentives for charitable donations to encourage giving. These types of policies
could help counterbalance the loss of the federal deduction, offering a more targeted incentive for residents to continue supporting local
organizations.
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