March 2026

Mohammad Anas Wahaj | 31 mar 2026

COVID-19 has been disastrous for nonprofits and the sector is still reeling with the shock waves created by it. Human resources are the critical component of nonprofits. Even though the sector employs 10% of the workforce in US, but the nonprofits were left out of the Paycheck Protection Program (PPP) created by the Congress during COVID. Jon Pratt, former Executive Director of the Minnesota Council of Nonprofits, says, 'Work performed in the service of a charitable corporation...was excluded from the definition of 'employment' under the Social Security Act of 1935.' The mandatory old-age assistance and unemployment insurance was finally extended to nonproft employees in 1984. Rusty Stahl, President and CEO of Fund the People, explores the condition of nonprofit workforce, particularly underinvestment from government and philanthropy, and suggests ways to bring changes to make it thrive. He says, 'But our workforce has not been ignored or harmed by lawmakers alone. Nonprofit workers have long suffered from a chronic deficit of investment from within the social sector - from foundations, donors, and nonprofit boards and executives themselves.' According to the research by the Center for Effective Philanthropy (CEP) - Issues of staff recruitment, retention, compensation, and burnout are the top internal challenges facing nonprofits, and have been for at least the last three years; While 93% of grantmakers believe they understand their grantees' challenges, only 53% of nonprofit leaders concur with that assessment. He points out the inadequacy of current funding, and says, 'While there are many wonderful funders and fundraisers in the field, I would argue that most types of grants available today are inadequate because they don't intentionally invest in the grantee's workforce. In fact, most grants actively disincentivize nonprofits from creating high-quality jobs.' He details the inappropriateness of major type of grants available now, such as project restricted support, general operating support, capacity-building support, and capital investment support. He proposes a new kind of funding termed as S.O.S. (Staff Operating Support) grants. Through this concept he suggests the process of intentionally offering incentive and budgets to nonprofits that would assist in elevating workforce development. He explains, 'S.O.S. funding is dedicated exclusively to investing in the grantee's team members and the organizational systems that support that team. Within this zone of restriction, it can be used in a flexible, responsive, and trust-based manner...S.O.S. funding offers a win-win for nonprofits and their funders. It can meet the staffing, flexibility, and budgetary needs of nonprofits, while addressing funders' desire for specificity, visibility, and measurability.' He provides 7 key traits of S.O.S. grant - (1) A focus on systems (2) Responsive to needs of the moment (3) Capital for humans (4) Grants, not fellowships (5) Good boundaries (6) Ability to document value (7) Consent of both grantor and grantee. Read on...

Nonprofit Quarterly S.O.S. - Nonprofits Need Funding for 'Staff Operating Support'
Author: Rusty Stahl

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