Leaders of nonprofits in the region met at a Columbus Metropolitan Club forum Wednesday to discuss the state of their sector, including how local needs are increasing now amid inflation and internal workforce challenges. Michael Corey, executive director of the Human Service Chamber of Franklin County, noted as well that the panel and attendees were fortunate to have power and air conditioning at the event amid blackouts in the Columbus area.

Other panelists included Dan Sharpe, vice president of community research and grants management at the Columbus Foundation; Lisa Courtice, president and CEO of the United Way of Central Ohio; and Leah Evans, president and CEO of Homeport. The discussion was hosted by Deborah Aubert Thomas, president and CEO of Philanthropy Ohio.

During opening remarks, club board member Carey Schmitt said nonprofits had “battled back from the pandemic, only to be met with new challenges including the steepest inflation in decades.”

“Rising prices and labor costs have made it difficult for many nonprofits to deliver services to those in need. Nonprofit leaders have also seen some COVID relief funds come to an end while the demand for services only continues to increase,” she added.

Corey discussed a “State of the Sector” report the chamber has completed and is scheduled to release at 3 p.m. Friday, saying findings include that primary issues for local nonprofits include managing growth; financial unpredictability beyond 2022; workforce recruitment and retention; client needs that have increased beyond the early months of the pandemic; and technology.

Corey added that they received responses from 89 agencies who employ around 15,500 people but have 1,943 unfilled jobs. “Workforce impediments” include wages and benefits where nonprofits face a “unique competitive disadvantage,” finding qualified staff, burnout, recruitment, workload and retention.

The demand for services has largely increased, as 77 of the 89 agencies reported greater demand. It is also currently unclear how demand will change over time, and around half of respondents have revenue concerns. A recurring thing about the responses is that “tremendous hope” remains, Corey said.

Thomas asked the other panelists about how the pandemic affected the nonprofit sector, with Courtice and Evans discussing how that meant serving community needs in a different way including through digital formats.

Regarding workforce challenges, Thomas asked how nonprofits are re-imagining their work and delivery as a result. Evans said nonprofits have been taught to show a level of strength, but it’s also important to let funders know where they need help and support. Nonprofits are also “risk-averse” in their operations, since it involves people’s lives but, bringing agile risk-taking can provide some rewards.

Courtice added that bold and brave decisions about re-imagining organizations can be needed. Corey said some nonprofits have looked to four-day workweeks and adjusting their business model and funding as a result in order to address workforce retention. Other efforts include new benefits, including wage increases, paid family leave and pet insurance.

When it comes to changes in leadership, Sharpe said he has some concerns about institutional knowledge being lost. Courtice also expressed concerns about leaders leaving due to how difficult their work can be.

Thomas brought up changes in relationships with donors and funders. Sharpe told her the Columbus Foundation has made drastic changes to its grant-making process, including more contact with nonprofits and operating support. The foundation also wants donors to have a high level of confidence in their charitable investments and is focusing on racial equity in terms of gender, class and environment.

Corey said there have been efforts through both the CARES Act and American Rescue Plan funding to create a more open-ended access to government funds and give agencies needed flexibility. Neither set aside any money for nonprofits, but state and local governments distributed it to them. He cited a $5 million grant through the city of Columbus as an example.

Regarding endowments, Sharpe discussed how there is a popularity of comprehensive campaigns, which are inclusive of them. He added that organizations come to the Columbus Foundation in pursuit of what endowment services could do to help their organization. Some have chosen to open two funds with that mindset and fiduciary model -- one for capital improvement and another in a more traditional model.

Courtice said Columbus organizations are under-endowed compared to peer cities in Ohio that have older wealth, though Columbus will reach that at some point. However, there is a diverse funding pool and local nonprofits aren’t reliant on just one body of funding.

When it comes to government funding, Corey told Thomas flat funding is a funding cut -- especially now -- and it’s not clear how they will develop at federal and state levels. He also discussed concerns with the state budget last year and said nonprofits need to be ready for that instability.

Thomas asked about how nonprofits are engaging for systemic change. Evans said “it matters as much how we do something as what we do” and that the sector is “an engine” with thousands of workers and has impact in how it invest money and who it works with. Corey also said nonprofits can’t make systemic changes happen immediately, but are able to influence those with that ability.

Corey and Sharpe also commented on how the pandemic affected the arts sector, with Corey saying that will be a key way “to navigate all of the trauma that we have been through.” Sharpe discussed a study on how Ohio’s arts sector lost 41,000 jobs and a decline of $8 billion in economic output in 2020. (See The Hannah Report, 4/21/22.)

In response to audience questions, Corey and Courtice discussed how nonprofits don’t want to merge. Corey also discussed how nonprofits can work with retirees to address staffing challenges, including with volunteer programs that already relied on retirees and were limited due to their increased risk early in the pandemic. Retired nonprofit CEOs can also be a valuable resource, he added.

Thomas asked where panelists were seeing promise and hope, though Sharpe was the only one able to respond before the forum ended. He said the community is a source for him, and added that the foundation’s Big Table discussion will return this year on Oct. 6.