Why nonprofit CEOs are leaving

The Chronicle of Philanthropy conducted a wide-ranging survey of CEOs and found that about one-third are planning to leave their jobs within two years, with 22% likely to leave the nonprofit industry entirely. Although job satisfaction is high, 88% of the respondents describe the demands on them as “never-ending,” and almost 60% struggle with work-life balance.

According to the Chronicle, almost all of the CEOs surveyed agree that the benefits of their jobs outweigh the negatives (97%) and that they feel tremendous satisfaction in their jobs as nonprofit leaders (96%). But 90% also feel tremendous pressure to succeed, which helps explain their impending exodus. Retirement ranks as the top reason for their departures. Other leading reasons include salary and the challenge of finding resources. Notably, about 40% of respondents say their boards aren’t engaged.

Employee volunteerism on the rise

An Association of Corporate Citizenship Professionals survey reveals that employee participation in volunteer activities in the workplace increased in 2023, with companies offering a greater variety of options and time off for volunteering. In addition, in-person and virtual volunteering options have become standard in corporate volunteer programs as remote work has become more common.

Sixty-one percent of the corporate social responsibility and environmental, social and governance professionals surveyed reported greater employee participation rates. Only 14% experienced drops in participation. Companies boosted their rates by providing, among other options, increased opportunities for group volunteering (59%) and more focus on in-person volunteering opportunities (48%). Some also have added more options for individual volunteering and increased their employee engagement budgets in 2023. Almost a third of those surveyed also introduced or increased skills-based volunteering.

New ban on noncompete agreements may cover nonprofits

The Federal Trade Commission (FTC) recently issued a final rule that generally prohibits noncompete agreement with employees. The rule — which is facing court challenges — also will rescind existing noncompete agreements for most workers if it goes into effect after its September 4, 2024, effective date. Although some believe that 501(c)(3) organizations are outside the FTC’s authority because they’re not “corporations” under the FTC Act, the agency maintains that not every tax-exempt organization is beyond its jurisdiction.

The FTC contends that it has jurisdiction over “so-called nonprofit corporations, associations and all other entities if they are in fact profit-making enterprises.” In particular, it rejects the notion that all hospitals and healthcare entities claiming tax-exempt status fall outside its authority. To determine whether an organization is “profit-making,” the FTC considers 1) whether the corporation is organized for, and actually engaged in, business for only charitable purposes, and 2) whether either the corporation or its members derive a profit.