Virginia Nonprofit Sector Report 2023
This week the Virginia Nonprofit Sector Report: 2023 Snapshot was released by the Center for Nonprofit Excellence (CNE), whose mission is to promote excellence through training and executive education for nonprofits in Charlottesville and Central Virginia.
Much like the 2022 State of the Baltimore Nonprofit Sector released by T.Rowe Price Foundation in late 2022, this new report shows that the nonprofit sector in our region continues to be robust but needs significant capacity and leadership to continue to thrive. As a consulting firm in the DMV region, we are also seeing some of the most impactful nonprofits struggle with staffing, burnout, financial challenges, and a strategic vision for the next horizon.
We know how busy nonprofit are so here are Purpose Possible’s key takeaways:
Virginia nonprofits believe in the work they’re doing and in the positive change they’re making in their collective community. Of the 242 respondents, 88% believe that their organizations stimulate positive change and resilience with a culture of collaboration, adaptability, and continuous learning. This is great news for the sustainability of the sector across the commonwealth as many organizations begin to evaluate their effectiveness across our region.
The sector remains robust in Virginia with over 26,732 registered 501(c)3 nonprofits generating $86.9 billions dollars in revenue across the commonwealth. Despite this number, the revenue does not always align with the level activity in the respective priority areas: health-related organizations represent only ¼ of the nonprofits however, they account for 41% of the revenue generated.
Staffing and workforce concerns continue to be top of mind for nonprofit executives as they recover COVID-related shifts in organization structure. Across the sector, we are seeing articles about burnout, challenges with finding key leadership positions, and staff advancement. Creating a pipeline of passionate team members is a challenge for nonprofits and philanthropy has an opportunity to support capacity in this area for many organizations struggling to keep up with the salaries, flexible schedules, and benefits of the for-profit sector.
Capacity building support continues to be one of the most urgent needs for VA nonprofits and most would like that support in dollars. Unrestricted general operating funds have been a hot topic in the philanthropic world for many years as nonprofits have rallied for mORE trust-based support for their capacity building efforts like staffing and operations.
The sector in VA needs a pipeline to more diverse leadership that reflects their constituents and the wider population – this includes the staff AND board members. Nonprofits in VA recognize that their leadership is overwhelmingly white women while their middle management and operations teams are more diverse. They are seeking guidance from leaders in DEI to help them create strategies for diverse and inclusive leadership.
Relationships are the true currency and VA nonprofits are seeking deeper relationships with peers, government, and philanthropy in new ways. Nonprofits say they are interested in partnerships, joint ventures, and information sharing to increase their collective impact. They are looking for opportunities to “connect purposefully.”
Evaluation resources are sorely needed to increase nonprofits’ capacity to truly measure results. The urgency of this support is evident with 80% of survey respondents indicating a strong need. Again, philanthropy has an opportunity to support the capacity of community building work but supporting nonprofits’ efforts to measure their impact in meaningful ways to them. This includes understanding that not all programs can be evaluated using qualitative measures.
For Virginia nonprofits, the needs are clear: more capacity, more collaboration, and more resources will allow organizations to continue thriving. The vital work in health, education, youth development, and more need the support of philanthropic institutions and government agencies to do their work in a deep, connected, and impactful way.
Access the full report at: thecne.org/virginia-nonprofit-sector-report