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Unions, MacKenzie Money, and Generational Conflicts: Trends in Nonprofits Post-COVID

lucyodigie
As the nonprofit sector navigates the post-pandemic world, several emerging trends are reshaping how organizations function internally. From large, sudden donations to increased interest in unionization and amplified generational conflicts due to remote work, these shifts are creating both opportunities and challenges. Drawing from my experiences consulting across multiple nonprofits, I've identified key trends and common challenges that organizations are facing today. Below are some insights into these trends and practical tips for addressing them.

Recent Trends


Sudden Injections of Cash: The year 2020 saw unprecedented levels of giving, with many nonprofits receiving more funding in one year than they had in their entire existence. While under-resourced organizations welcomed this influx, it also brought challenges. Small to medium-sized nonprofits suddenly found themselves in rapid growth mode, often without alignment between senior leadership and staff on the organization’s direction. Common challenges include rapid hiring, sudden shifts in culture, and widening gaps between staff and leadership—not just in access and face time, but also in pay and transparency. Recent scandals involving nonprofit leaders' spending habits have underscored the complex dynamics of mixing social impact with significant capital.



Unionization: Closely related to issues of pay, fairness, and transparency is the growing movement toward unionization in the nonprofit sector. Despite being mission-driven and dedicated to creating a more just and equitable society, nonprofits have lagged behind the private sector in union representation. Interest in unionization has surged, with coverage in outlets like AP News and The New York Times, chronicling both the momentum and the challenges. The Nonprofit Professional Employees Union, for example, expanded from 300 members to 1,700 in just four years [1]. Common struggles include senior leaders—many of whom have dedicated their careers to social impact work—rejecting the idea that they are part of the "employer class." Others report feeling villainized by union representatives or questioning the union's motives. Employees, on the other hand, often feel a disconnect between the organization’s public values and its internal practices. In some cases, employees have reported feeling targeted by senior leadership or being perceived as troublemakers after becoming active in the union or unionization process. Through my conversations with employees at various nonprofits, I’ve gained valuable insights into how unionization impacts organizational culture. (Stay tuned for a compilation of these discussions in the coming weeks!).


Generational Differences Amplified by Remote Work: Generational conflicts are nothing new, but remote work has amplified them. Older generations often view younger workers as entitled or unrealistic, while younger employees see their elders as out of touch. Remote work has exacerbated these tensions. One of my foundational professional experiences involved traveling with senior staff, learning not just about my job, but also how to navigate professional relationships and industry politics. These experiences built trust and empathy, even when conflicts arose. While remote work offers flexibility—particularly benefiting POC and women by reducing toxic work environments—it also limits the social interactions that build these critical relationships. Junior staff, in particular, may miss out on the bonding and learning that occur during work outings, travel, and office social events.


The following tips are based on observations and interviews across more than 30 organizations, ranging from small teams of fewer than 10 staff to foundations with over $100 million in annual funding and hundreds of employees. They are applicable to ongoing organizational challenges and can be particularly useful for organizations navigating transitions, whether through unionization, leadership changes, or reorganization.


Tips and Things for Leadership & Senior Staff to Keep in Mind


General Tips for Morale/Shifting Cultural Norms


  1. You Are Not Alone: Cultural changes in nonprofits are part of wider social trends where traditional relationships with work are being renegotiated. Many of my clients feel their challenges are unique, but they’re often part of a larger trend. Leaders should foster open discussions about internal challenges to break the stigma and facilitate cross-organizational learning.


  1. Get Over Being “Different”: Nonprofits often believe their culture is unique and, therefore, immune to common challenges like unionization or internal conflict. However, many organizations face similar struggles related to pay, growth, and culture. While leadership may feel they don’t need updated internal policies, staff often see things differently. It’s understandable that senior leadership at social justice organizations might instinctively reject the label of “employer class,” but the reality is that the nonprofit sector is not exempt from the same economic inequities present in the broader economy.


    The nonprofit sector is vast, ranging from large, multi-million-dollar research institutions to small, skeleton-staffed organizations. Examining salaries across the sector doesn’t always provide a clear picture of pay patterns, particularly among social impact organizations committed to economic, racial, and gender equity. That said, studies have consistently highlighted pay inequities in the nonprofit world. For instance, a study from Drexel University found that women, on average, earned nearly 9% more than their male counterparts in similar roles [2], though more recent studies have identified gender pay gaps as wide as 28% [3]. These disparities are often exacerbated when salaries are subject to negotiation. Acknowledging and addressing these realities is crucial for nonprofits to ensure equity and fairness within their own organizations. 


  1. Not Everything Has to Be Outsourced: As a consultant, this may be sacrilegious to say, but consultants aren’t always the solution. Many organizations fail to utilize their internal talent when developing processes or gathering feedback. While external consultants are valuable in certain areas, like conflict resolution or strategic planning, internal staff should be involved in discussions about organizational growth and hiring priorities.


  1. Know When to Take a Break: Many staff members report burnout from constant discussions about morale and organizational culture. If conversations become repetitive or staff stop engaging, it’s time to pause. Communicate that the organization is still committed to improvement but that a break is necessary to avoid overexposure to these issues.


Tips for Navigating A Large Influx in Funding or Issues with Pay Equity


  1. Money Changes Things: Few organizations acknowledge that large injections of capital can drastically shift organizational dynamics. Staff often feel alienated by celebrations of donations that far exceed their annual salaries, and they report a lack of transparency about how this money will benefit them. At the same time, leadership feels that staff have unrealistic pay expectations. Open, honest communication about financial realities can help bridge these gaps.


  1. New Isn’t Always Good: After receiving a large grant, many nonprofits rush to hire new staff without proper internal alignment. This can lead to duplication of roles, anxiety among existing staff, and the amplification of pre-existing challenges. Before hiring, conduct a thorough assessment of current staff and their roles, and give existing employees a chance to apply for new positions.


  1. Be Ready to Justify Decisions: Times have changed. The deference to authority that past generations were used to is no longer the norm. Employees expect transparency, especially around pay discrepancies between junior staff and senior leadership. While leadership isn’t obligated to explain every budget detail, they should be prepared to justify major financial decisions.


Tips for Navigating Unionization


  1. Unions benefit all of us: Senior leadership in many organizations often feels that unionization leads to a rapid decline in morale and trust. However, it’s not the union itself causing these feelings—it’s simply bringing long-standing issues and grievances to the surface. While the process can certainly feel challenging, the reality is that unions benefit both organizations and society as a whole. The link between declining union membership and rising economic inequality is well documented [4], and addressing these underlying issues strengthens everyone in the long run. While your organization might not feel like it needs a union, the broader societal need to normalize union organizing is crucial in addressing the growing issue of economic inequality.


Source: U.S. Department of Treasury


  1. Be Honest About What You Can Do: One of the most common missteps is over-promising and under-delivering. Be upfront about what’s possible and what needs further investigation. This approach will prevent the need for backtracking and help staff feel more grounded.


  1. Mission Alignment Matters, But Don’t Weaponize It: While few join nonprofits expecting to get rich, employees still expect fair pay, and nonprofit leaders should recognize that advocating for equity in compensation is in line with their mission. Rather than a source of contention, an organization’s mission can serve as a guiding principle in discussions around compensation and internal policy decisions. Used respectfully, it can be a valuable tool during negotiations.


BONUS. Be intentional about the type of relationship you want to cultivate with the union. Consider looking at other case studies and examples of successful union-management partnerships to understand different approaches. Building a positive, collaborative relationship is possible when you explore models that prioritize mutual respect and open communication. For practical guidance, be sure to check out resources on effective collaboration with union representatives, which can help foster a productive and constructive working relationship. Below are a couple of recommendations to start you on your journey:


  • How Businesses Should — and Shouldn't — Respond to Union OrganizingHarvard Business ReviewLinkThis article explores the best and worst ways for businesses to respond to union organizing efforts, offering practical advice for navigating this process.

  • How Unions Can Increase Firm Productivity and Strengthen Economic GrowthWorkRise NetworkLinkThis resource discusses how unions can contribute positively to firm productivity and economic growth, debunking myths around unionization’s impact on businesses.

  • Unions Are Having a Moment: Here's How It Can Be Good for Labor and BusinessCornell University - Scheinman InstituteLinkThis blog outlines how the current resurgence of union activity can benefit both workers and businesses, highlighting mutual gains from unionization.

  • The Impact of Unions on Wages and ProductivityScienceDirectLinkThis research article examines the effects of unionization on wages and productivity, providing empirical data on the economic impact of unions.

  • It’s Complicated: Nonprofit Organizations and Wage EquityNonprofit QuarterlyLinkThis piece explores the complex relationship between nonprofit organizations and wage equity, particularly in the context of unionization and labor movements.

  • Common Ground: Strategies for Communicating Effectively with Labor UnionsLovell CommunicationsLinkThis resource provides communication strategies for businesses to effectively engage with labor unions, promoting collaborative and constructive dialogue.

  • How to Work with Your Unionizing EmployeesHarvard Business ReviewLinkThis article offers advice on how businesses can navigate working with unionizing employees, emphasizing respect and collaboration in the process.


References:


[1] The New York Times, "Nonprofits and Unions: Why Workers Are Organizing," April 28, 2023, https://www.nytimes.com/2023/04/28/nyregion/nonprofits-unions.html.

[2] Drexel University, "Study on Gender Pay Gaps at Nonprofits," May 26, 2021, https://drexel.edu/news/archive/2021/may/study-on-gender-pay-gaps-at-nonprofits.

[3[ Candid Blog, "The Great Restructure: Gender Inequity & Culture in the Nonprofit Sector," March 8, 2023, https://blog.candid.org/post/the-great-restructure-gender-inequity-culture-in-the-nonprofit-sector/.

[4[ U.S. Department of the Treasury, "Labor Unions and the U.S. Economy," August 23, 2021, https://home.treasury.gov/news/featured-stories/labor-unions-and-the-us-economy.



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