Thomas G. Bognanno has been the President and CEO of CHC: Creating Healthier Communities since January 2006.
I love baseball. I predict I will still love it in 2023. That is one prediction I know will come true. The others you read about annually—as one year ends and another begins—are less certain. I’m old enough to remember Hall-of-Fame catcher, Yankee great and erstwhile philosopher, Yogi Berra. He is purported to once have said, “I never make predictions, especially about the future.”
Nonetheless, articles about emerging trends and predictions for 2023 abound right now and range from the trivial to the apocalyptic. For the enterprising nonprofit executive, those articles attempt to identify trends that will help with everything from fundraising prowess to board development.
I feel obliged to follow suit and zero in on a few key trends that provide vital insight to help you steer your nonprofit ship over the coming months:
A projected mild recession, investment market volatility and inflation could pose material risks in the year ahead. Further, eroding consumer sentiment and the ever-present threat of lingering public health challenges merit caution.
Inflation will put increasing pressure on expenses as it has throughout 2022, though relatively flexible operating models and revenue diversification will partially mitigate risk. If interest rates continue to climb, raising funds may be harder, requiring better resource management. Not surprisingly, the fragile economy could weaken discretionary incomes and further erode philanthropic prospects for many nonprofits.
Two bright spots include any realization of strong prior-year investment returns that could help keep your revenue growth above operating expenses in 2023. And, for those who rely on government funding, that support should remain stable at the federal, state and local levels, though the realities of divided government add uncertainty.
The best leaders will go all-in on growth strategies in 2023. This coming year will require leaders to stretch and identify structured growth opportunities. Inertia is the enemy of success, even in the best of times. Executives must fight the seemingly safe strategy of staying the course and instead prioritize growth and take calculated risks. Growth-oriented, agile organizations can react decisively to disruptions and turn short-term opportunities into long-term gains.
This has never mattered more, especially when talent pools are thin and employees are quitting.
Forward-thinking organizations are choosing to look beyond traditional requirements to hire people with unconventional backgrounds. Employee mental health and emotional well-being and satisfaction are also priorities for retention and engagement. Salary and development opportunities are still critical, but they must be balanced by other considerations such as a flexible work schedule, feeling valued, having trusted teammates, plus a sense of belonging. Leaders who nurture purpose, mission and meaningful relationships in the workplace will find greater organizational cohesion and resilience.
And speaking of mental health and well-being, Covid-19’s stress and isolation shone a bright light on the mental health challenges facing our world. We’re in a mental health crisis globally, affecting everyone, but especially young people, people of color and other demographics with increased rates of stress, anxiety, depression and other issues. Mental health and mental health equity must be a priority for every workplace, family, place of worship, community and country.
Continued discord and tension around ideology, the nonstop presence of media and social media, and the preference for technology over real relationships continue to splinter our collective unity.
The impact of increasing political partisanship, aided and abetted by our political leaders, is driving dangerous levels of polarization around uncompromising beliefs. Social media influencers and pundits eager for attention are deriding their opponents and destroying common ground.
Loathing motivates more support than loyalty. Many of our influencers have ushered in a time where politics are becoming altered by negative partisanship, and where a primary tool for getting voters to take action has become anger. The same can be said for motivating donors. Responsible nonprofit leaders will resist the temptation to use this caustic energy for short-term gain as it carries the seeds of long-term societal deconstruction. We would do well to remember the lessons of the past. As German poet Henrich Heine once said, "Those who begin by burning books will end by burning people."
One way to move forward is to intentionally spend time with people outside your usual circle—with different political, religious, racial, ethnic, socioeconomic and other backgrounds. This comes through involvement in community organizations, volunteering and beyond. If we only interface with people who think just like we do and only engage in media that reinforces our current point of view, we can’t learn, expand and grow.
We also need to ensure people with disabilities are included in our definition of equity and justice and that we are truly inclusive and bringing everyone together, not just focusing on a single group or whatever commands current media attention. If we are allies, we are allies for all. Employee resource groups (ERGs) can be another useful tool, especially in encouraging different ERGs to meet or work together.
The best path forward in 2023 will be to build on efforts to strengthen the workforce with an unwavering focus on diversity, equity, inclusion, justice, belonging and accessibility. The challenge will be authentic inclusion—truly welcoming, respecting and including each other versus breaking into camps, tribes or groups. The most successful leaders will focus on flexibility and growth, supporting their workforce, and building common ground and authentic inclusion for all people. Reverting back to Yogi once again with one of his more prophetically accurate proclamations, "The future ain’t what it used to be.”
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