CEO's 2023 Nonprofit Outlook

During this season of reflection and refueling, the team at STRATA9 is grateful for the opportunity to work alongside changemakers to tackle our nation's most challenging domestic issues. As we look to 2023, we see increased opportunities for impact, precisely as nonprofits assess their strategic planning and advancement strategies.

Board transformation and development continue to be top of mind for our clients, with active recruitment across the country for skilled Directors able to advance mission-focused organizations. Recruiting talented and diverse directors remains a priority for organizations. The median age of directors is holding constant at 62, with racial and gender makeup coming in at 80% White, 6.2% Black, 2.7% Latino, and 60% male. In addition, the departure of senior females on the C-Suite track has created succession planning challenges for many organizations. Nonprofit boards must actively support, grow, and retain talent to rebuild mission excellence.

The use of interim executives has been on the rise, allowing nonprofits to leverage the power of fractional experts tied to performance-based outcomes. Shared services and remote work have allowed many nonprofits to redirect costs to high-impact areas for growth and fundraising. We have enjoyed working with nonprofit leadership teams to create transformative "resets" and their next growth phase.

We anticipate a rise in nonprofit consolidations and acquisitions as financial and staffing constraints propel closer collaboration within sectors. Philanthropic funding has shifted in several sectors challenging organizations already reeling from previous pandemic losses. Likewise, well-capitalized organizations seek the agility and customer intimacy that smaller nonprofit programs can bring to the fold. Preparing for and executing a successful merger or acquisition within a nonprofit ecosystem requires expertise and cultural competency. Without the right team, most endeavors face significant challenges and fail to launch.

Cybersecurity remains top of mind for the nonprofit industry. Increased cyber incidents have left many nonprofits with irreparable damage, compromised sensitive information, a blemished reputation, and eroded donor trust. Our cyber consultants can quickly conduct a cyber health check to fortify security within the budget of organizations looking to protect against cybersecurity threats. With staff turnover increasing, human error becomes a cyber criminal's best friend. Telework has only added to this complexity.

Remote work is here to stay, but sustaining employee engagement requires the training and coaching of managers supervising a growing and multigenerational workforce. Young adults impacted by the pandemic will enter the workforce facing their generation's most complex career outlook, intensified by debt and inflation.

The aforementioned challenges will continue to test us. Still, with trust, talent, and diverse voices around the table, we are confident that organizations can strategically shift and continue to drive positive change. The STRATA9 team stands ready to discuss ways we may assist in developing unique and targeted solutions for your impact-driven organization. We have also assembled a Changemaker Reading List to help launch 2023 for you and your organization!

Wishing you all the best as we enter 2023. We appreciate all you have accomplished in 2022, and we look forward to seeing the impact you will make throughout the upcoming year.

Regards,

Rosye B. Cloud

STRATA9, Chief Executive Officer

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