The Nonprofit People Crisis and the HR Solutions That Strengthen Leadership and Staffing

Quick read - about 3 minutes

Nonprofits are navigating a historic people crisis. Demand for services is rising, funding remains unpredictable, and organizations are struggling to recruit, retain, and support the people who carry out their mission.

As part of Kinexus Group, HR Collaborative (HRC) has partnered with nonprofits across the region and beyond. We understand the pressures leaders face and the systems required to create a stable, supported workforce. Our experience makes one thing clear - strong people practices are no longer optional for nonprofits; they are foundational to mission continuity.

How the Nonprofit People Crisis Is Deepening Staffing Shortages

Nonprofits continue to face persistent and widespread staffing shortages. According to a national survey by the National Council of Nonprofits, about 74 percent of nonprofits reported job vacancies, and many say vacancy levels are even higher than pre-pandemic times. These open roles often sit in essential frontline, administrative, and HR functions.

Recruitment efforts are being strained by wage competition, limited benefits flexibility, and growing burnout among staff, as noted in the National Council of Nonprofits’ overview of the issue. The result is a cycle where fewer people are doing more work, which increases turnover and weakens operational stability.

The Role of Nonprofit Leadership Turnover in the People Crisis

Leadership transitions have become one of the most significant sector-wide risks. Record-level CEO and Executive Director departures are reshaping how nonprofits operate and plan for the future.

Insights from The Chronicle of Philanthropy’s forum, “The Great Nonprofit Leadership Turnover,” reflect what many leaders already feel. The sector is entering a generational handoff, where increasing retirements, sustained burnout, and shifting expectations of leadership are leaving organizations with more transitions than ever.

Nonprofit leaders described the growing complexity of their roles — balancing rising community needs, heightened expectations around equity, and the emotional responsibility of supporting staff through constant change. Boards also shared that they are facing more CEO searches simultaneously, often without strong succession plans or internal pipelines to guide the transition.

This aligns with broader research suggesting that up to 75 percent of nonprofit leaders may leave their roles within the next decade, and more than half of executives report burnout severe enough to consider stepping away. Leadership turnover is no longer a momentary disruption. It is a strategic inflection point that requires careful planning and experienced support.

Executive Search as a Stabilizing Force in the Nonprofit People Crisis

With nonprofit leadership turnover rising, organizations increasingly rely on executive search partners who understand the nuances of mission-driven leadership. Nonprofit CEO and Executive Director recruitment requires expertise in culture, board relationships, community expectations, and long-term strategic alignment.

HRC’s Executive Search team brings that expertise — enhanced by our connection to Kinexus Group and decades of nonprofit leadership experience. We help organizations identify leaders who bring operational strength, compassion, and clarity, even in times of uncertainty.

A well-managed leadership transition can stabilize culture, protect mission momentum, and position an organization for future growth. In a people crisis, that stability matters more than ever.

Nonprofits Need People Systems That Match the Weight of Their Mission

The challenges nonprofits face today are real, but they are solvable with the right support. Many organizations are already taking proactive steps, such as updating succession plans, modernizing HR structures, and investing in better recruitment strategies.

Nonprofits do powerful work for their communities. They deserve people systems that are just as strong.

If your organization is feeling the strain of staffing shortages, HR capacity gaps, or leadership transitions, you do not have to navigate it alone. HRC is here to help you build stability today and strengthen your people strategy for the future.

Let’s make work better for the people who make missions possible – Contact us or take our digital health assessment to start your journey to stabilizing your non-profit work force!