CommonGood Vermont: Updated Nonprofit Workforce Shortages Report
In Fall 2021, the National Council of Nonprofits surveyed the sector to better understand how workforce shortages were impacting nonprofits and their abilities to carry out their missions. This July, an updated report was released that identifies action taken in 2022, policy challenges, and recommendations to alleviate the crisis going forward. Key takeaways are summarized below, or:
Persisting Challenges:
- Expired Charitable Giving Incentives: Congress allowed the universal charitable deduction to expire at the end of 2021, depriving charitable nonprofits of this meaningful source of revenues when it was most needed to address workforce and service needs.
- Retroactive Repeal of the Employee Retention Tax Credit (ERTC): The premature repeal of the law meant that organizations were denied resources to keep people on the job and perhaps pay a little more to retain and attract staff.
- Government Grants and Contract Challenges: Recurring flaws include failing to adjust reimbursement rates to reflect real costs. Another hindrance occurs when governments restrict the hourly rates they will reimburse the nonprofits they hire to provide services to the public on behalf of government.
To read the full blog post on the CommonGood Vermont website click here.