Report provides information regarding key challenges faced by the Mid-South nonprofit sector as well as recommendations for nonprofits and philanthropy
In January 2023, Momentum Nonprofit Partners and the University of Memphis Institute for Philanthropy and Nonprofit Leadership distributed an online survey to nonprofit executives in Memphis and the Mid-South. This survey gathered information about the overall health and capacity of the nonprofit sector, and examined what changes, if any, had occurred since the 2020 iteration. The report was written by Dr. Erin Nelson of the University of Memphis.
This year’s report mirrors the 2020 report by providing a general overview of the sector, and highlights distinct characteristics of, and challenges among, the Mid-South nonprofit sector. This report provides in-depth information for three focus areas including organizational leadership, organizational capacity, and public policy and advocacy.
The findings from the 2023 report reveal:
Continued racial leadership gaps, particularly at the executive organizational level.
A reported increase in program and service demand, with many respondents indicating that their organizations struggled to meet those demands.
Funding limitations and staffing challenges which have direct impact on organizational capacity.
A widely-held belief by nonprofit leaders that public policy has minimal to no effect on their organizations and operations.
The data mirrors national statistics about labor shortages, fundraising challenges, and racial leadership gaps impacting nonprofits across the nation and in Tennessee. Additionally, more than 50% of nonprofit CEOs and executive directors reported their intention to leave their positions within the next 3-5 years, continuing the leadership turnover that must be addressed by intentionally addressing the talent pipeline.
“Costs are going up due to inflation. Demand continues to rise. And many of the pandemic relief programs are going away. People are turning to charitable nonprofits to get what they were getting from the government.”
Related: Labor costs throttling understaffed nonprofits, many cutting services - Daily Memphian
Overall, responding organizations are experiencing challenges and opportunities that are similar to those of their peers across the country. Still, we must continue to address shortcomings, both build on current successes, and ensure the continued stability and capacity of the sector.at operational freedom comes great responsibility. Be honest about what the organization could be doing better in its internal management processes, and reach out for help, including through a process audit, when an outsider’s perspective is needed.