Chelsea Ohlemiller, Charitable Advisors

Recruiting and retaining top talent in the nonprofit sector has always presented unique challenges, but as we move into 2025, organizations are facing an increasingly competitive and ever-changing hiring landscape. Nonprofit leaders recently gathered in HR focus groups, led by Charitable Advisors, to discuss the latest trends in attracting and retaining employees, shedding light on evolving candidate expectations, salary dynamics, and the impact of AI in hiring.

Here are the key takeaways from these collaborative recruitment and retention sessions:

The Biggest Challenges in Nonprofit Hiring

One of the most significant challenges for nonprofit organizations, particularly smaller ones, is salary competitiveness. Traditionally, mission-driven work and flexible benefits made up for lower pay, but today’s candidates expect higher salaries more comparable to those in the private sector. This shift puts pressure on nonprofits, especially those that struggle to offer competitive compensation and benefits.

Another hurdle is job titles that don’t translate well outside the nonprofit space. Potential candidates may overlook roles due to unfamiliar language, leading to missed opportunities for both the organization and job seekers.

Retention remains a concern in 2025, as competition for skilled professionals intensifies. Employees who once accepted lower salaries for meaningful work now seek higher pay and advancement opportunities, making it crucial for nonprofits to offer career growth pathways.

What Candidates Want in 2025

Candidate expectations have evolved significantly over the past year. While remote work remains a major draw for job seekers, many nonprofit positions, particularly frontline and program-based roles, require in-person engagement. The inability to offer remote flexibility has made recruitment more difficult, especially for these essential positions.

Encouragingly, many employees are showing interest in internal promotions and taking on more responsibility, signaling a desire for long-term growth within their organizations. This is hopeful insight, as leadership skills are in high demand. Especially considering, organizations desire candidates who can not only fulfill their job responsibilities but also build and lead teams effectively.

Salary Expectations and Transparency

Many nonprofits are becoming more transparent about salaries early in the hiring process, helping to align candidate expectations from the outset. Organizations have turned to salary and benefits surveys to restructure pay scales and explore creative compensation strategies, such as additional paid time off and unique benefit offerings. We also heard that some nonprofits have stopped posting compensation or only post a minimum salary because applicants seem confused or unable to understand that a salary range is generally based on level of experience.

Health insurance remains a major concern for job seekers entering the nonprofit sector. Some organizations are addressing this by offering innovative benefit options, but the challenge persists, particularly for smaller nonprofits with limited resources.

Turnover and Hard-to-Fill Positions

Turnover remains high in program staff roles, which often require on-site work with little flexibility, often leading to burnout and job dissatisfaction. Other positions, such as grant writers, therapists, development professionals, and financial roles, are also becoming increasingly difficult to fill.

Grant writing, in particular, has faced a growing challenge leading some organizations to turn to AI-generated proposals. While AI can streamline the grant-writing process, it still requires human oversight. Something to keep an eye on in 2025.

Consistent with last year, therapists, home-based service providers, and instructional roles remain difficult to recruit due to certification requirements and an overall shortage of qualified professionals. Meanwhile, operations positions have seen rising turnover as the field grows and competition increases.

AI’s Role in Nonprofit Hiring

The increasing use of AI by job applicants has brought both opportunities and challenges. While AI-generated resumes and cover letters have become more common, many hiring managers report that these submissions lack personalization and depth. Cover letters created with AI often appear incomplete or fictitious and fail to match the candidate’s actual qualifications to the job.

AI can serve as a helpful starting point in the hiring process, but nonprofit recruiters stress the importance of human oversight to ensure accuracy and authenticity in applications. Many organizations are training HR teams to identify AI-generated applications and ensure that technology is used to support—rather than replace—the hiring process.

Effective Recruitment Strategies

Despite the challenges, some recruitment strategies are proving highly effective:

• Targeted Job Boards: Using job-specific platforms helps attract the right candidates.
• Employee Referrals: Offering referral bonuses ($100–$250) encourages staff to recommend strong candidates.
• Career Fairs and Networking Events: These remain valuable, especially for engaging younger talent.
• Talent Pools: Proactively building a pipeline of qualified candidates allows nonprofits to fill roles more quickly when positions open.
• Sign-On Bonuses: When feasible, these incentives make nonprofit roles more attractive.

The Growing Importance of Soft Skills and Cultural Fit

Hiring managers emphasize that soft skills, including communication, adaptability, and passion for the organization’s mission, are becoming just as important as technical qualifications. Many nonprofits are open to candidates with transferable skills who may not check every box on a traditional job listing but align with the organization’s values and goals.

Job-Seeking Advice for Candidates

For job seekers looking to stand out in the nonprofit sector, our nonprofit leaders suggested the following practices can make a difference:

• Submit a Thoughtful Cover Letter: A personalized, well-crafted cover letter is critical. AI-generated, generic submissions won’t suffice—hiring managers want to see authenticity and a clear connection to the mission.
• Research the Organization: Candidates should demonstrate knowledge of the nonprofit’s mission and values in their applications, and especially in interviews.
• Prepare for Interviews: Having insightful questions ready and addressing hiring managers by name shows initiative and professionalism.
• Follow Up: Sending a thank-you email to the interview panel leaves a lasting impression and reinforces interest in the role.

Interestingly, on Charitable Advisors ED/CEO searches, less than half of candidates submit cover letters, despite our clear request – yet 80% of those interviewed have included a cover letter. So.. either the stronger candidates take the time to write cover letters or resumes alone don’t serve job seekers very well. Among those who received actual job offers, we believe that 100% had submitted a cover letter—highlighting its crucial role in the hiring process.

Looking Ahead: A Call to Action for Nonprofits

As the nonprofit job market evolves, organizations must adapt their recruiting and retention strategies to remain competitive. Salary transparency, leadership development opportunities, and creative compensation structures will be key to attracting and retaining top talent in 2025.

While challenges persist, nonprofits that prioritize strategic hiring, invest in their people, and foster strong workplace cultures will continue to build resilient and impactful teams. By staying attuned to candidate expectations and leveraging effective recruitment tactics, nonprofit leaders can ensure their organizations thrive in the years ahead.

Thank you to the dozens of nonprofit organizations that attended our Nonprofit Recruitment Sessions. Your knowledge, experience and personal data will help support our efforts in the new year.