Nonprofit Finance Fund Report Identifies Actions to Stem Worker Burnout and Build Strong Organizations for Healthy Communities

Oakland, CA, March 4, 2026 – Nonprofit Finance Fund (NFF)’s new report, “The Heart of the Nonprofit Sector,” draws on significant research, survey data, case studies, and analysis to share actionable practices that advance worker well-being. Americans rely on nonprofits for community services, education, healthcare, housing, and more, but many government and philanthropic funders chronically underpay nonprofits and do not cover their full costs. Underpaid nonprofits then struggle to pay workers a living wage and face burnout that threatens service delivery and hurts employees and communities.

The Heart of the Nonprofit Sector report was funded by grants from the Walter & Elise Haas Fund and The James Irvine Foundation. The report lifts up organizations investing in worker well-being for the benefit of all and includes a range of actions – big and small – that can be replicated by nonprofits and their funders and partners.

“Skilled and caring nonprofit workers provide services essential to the economic and social well-being of our communities,” said Aisha Benson, President & CEO of Nonprofit Finance Fund. “Nonprofit workers should not be penalized because their work has social value; we should incentivize and protect that social value with fair pay and supportive practices. This report shows many ways this is possible – from flexible work arrangements to distributing power to employees.”

Across all sectors, turnover and lost productivity as a result of burnout cost an average of 15-20% of an organization’s payroll. For nonprofits, these costs ripple into communities and result in lost expertise and connections that are crucial to an organization’s ability to serve its neighbors.

“Nonprofit workers are a key pillar of a community’s ‘social immune system,’ and supporting them requires bold, collective action,” said Jamie Allison, Executive Director of the Walter & Elise Haas Fund. “This report is a playbook that helps everyone invested in the sector learn from what is working now.”

To surface the recommendations in the report, NFF conducted interviews with 47 nonprofit leaders, funders, and policymakers across California and drew on research data and responses from more than 500 organizations that participated in NFF’s State of the Nonprofit Sector Survey.

The report identifies concrete actions and innovative practices in five areas: equitable pay, robust benefits, flexible work arrangements, collaborative leadership, and unionization. These include policies that can be implemented quickly – like allowing workers to swap shifts, making holidays and other time off flexible, and providing transportation stipends. The report also addresses more systemic changes, such as how funders can provide longer-term support, directly promote grantee professional development and wellness, and fund advocacy efforts.

“Every worker should have the power to achieve economic advancement,” said Don Howard, President and CEO of The James Irvine Foundation. “NFF’s research spotlights actions that nonprofit, philanthropic foundation, and government leaders can take now to support the movement toward worker well-being and organizational resilience.”

“Nonprofits able to prioritize worker well-being are often high performers in their fields, just as in the for-profit sector. The time is right for a shift in culture and practices,” said Elise Miller, Senior Director of Community Engagement at NFF. “Nonprofits and funders that are ready to make changes can see what is working and get started.”

Learn more and download the report and the 10-page action brief for funders.