Nonprofit HR’s Blog

To understand how mission-driven organizations are navigating today’s evolving landscape of compensation, benefits, and workforce strategy, we turned to the voices of those leading the charge. The 2026 Nonprofit Total Rewards Practices Survey drew responses from over 300 nonprofit organizations committed to advancing equity, transparency, and strategic workforce practices. Together, they offer a snapshot of how mission-based employers are balancing financial sustainability with fairness, competitiveness, and employee well-being. 

Nonprofit organizations are operating in one of the most complex environments in recent memory. Between shifting federal policies, unpredictable funding streams, and rising expectations from employees and communities, leaders are being asked to do more than ever, with fewer resources and higher stakes. The latest survey insights reflect not just data points, but the lived reality of mission-driven organizations striving to stay resilient while caring for their people.

Federal Policy

Nearly half of respondents to our survey (48%) report that recent federal policy changes have reduced their ability to offer competitive rewards. For nonprofits already balancing tight budgets and expanding community needs, this pressure is deeply felt. Only a small fraction, 1%, saw any improvement, underscoring how policy shifts often land hardest on organizations serving the most vulnerable.

For many leaders, the challenge is not just financial. They are trying to support staff who are carrying heavy workloads, navigating burnout, and staying committed to mission in the face of uncertainty. In this context, non-monetary benefits, flexibility, and recognition become more than strategic levers, they become expressions of care.

Compensation Adjustments

While 56% of organizations report no changes to compensation or benefits, this stability often comes at a cost. Many nonprofits are holding the line to protect their teams, even as funding pressures mount. At the same time, 24% have had to eliminate positions, an especially painful decision in mission-driven environments where every role is essential.

Freezing raises (16%) or restructuring benefits (9%) can weigh heavily on leaders who know how deeply these decisions affect staff morale and financial security. And with only 6% increasing non-monetary benefits, many organizations may miss opportunities to offer support in ways that do not require additional dollars but do require intention.

Sustainability

Only 46% of organizations feel their total rewards strategy is aligned with long-term sustainability. For nonprofits, this misalignment is not a failure, it reflects the reality they face. When funding is unpredictable and needs are urgent, long-term planning can feel like a luxury.

Yet the data also highlights a desire for greater clarity and integration. A quarter of respondents are unsure or misaligned, signaling that many organizations are seeking steadier ground. This is a moment for boards, executives, and HR leaders to come together, not just to plan, but to acknowledge the toll of constant adaptation.

AI in Compensation

While AI and analytics hold promises for more equitable and efficient compensation decisions, only 2% of organizations are actively using these tools. For nonprofits, barriers like cost, capacity, and data readiness are real. Many leaders are curious but overwhelmed, balancing the need for modernization with the realities of limited infrastructure.

The interest is there, 32% are exploring AI, however exploration takes time, bandwidth, and support. This is an area where funders, partners, and capacity-building organizations can play a meaningful role.

Reproductive and Gender-Affirming Care

With 88% of organizations not updating benefits in response to federal executive orders, as they may have already been compliant or offered such benefits, on reproductive and gender-affirming care, nonprofits are navigating a deeply sensitive and politically charged landscape. Many want to support their employees, but face constraints tied to funding, geography, or governance.

This is not a lack of care; it reflects the difficult trade-offs nonprofits must make every day.

A Sector Carrying So Much, With So Much Still Expected

The data tells a story of organizations doing everything they can to support their people while navigating forces outside their control. Nonprofits are resilient by nature, but resilience should not be mistaken for limitless capacity.

As the sector continues to weather uncertainty, the path forward will require not just strategy, but compassion, for staff, for leaders, and for the organizations holding communities together.

Survey Respondent Information

Responding organizations vary in size, structure, and maturity, most operate with teams under 1,000 staff and rely heavily on government and foundation funding. About one-third have unionized staff, underscoring a mix of labor environments and organizational models. The vast majority of organizations in this dataset are small to mid-sized, with slightly more than 50% having an operating budget under $20m; with around 18% having an operating budget between $20m-$50m.

Respondents span a wide array of sectors, including health and human services, education, and children, youth & families. With the majority (79.4%) in a maturity or sustainability phase, these organizations represent a grounded yet aspirational cohort, one actively shaping the future of equitable and strategic workforce practices.

Contributing Author

Lisa McKeown
Director, Total Rewards
OneDigital, Nonprofit Practice 
View Lisa’s bio