“We’ve been dealing with it by eating into our reserves, but quite frankly, we’re running a significant deficit this year,” said Chris White, CEO of Road to Responsibility, which provides services, including housing, to disabled citizens. “We had to increase our wages to stop hemorrhaging, people going to other jobs that paid better, usually in different fields, and to have a hope of recruiting people. And, unfortunately, we’ve had to do that to a level that exceeds our contracts that we are provided by the state to provide the services that we do.”
White said nonprofit leaders haven’t had to deal with inflation at the current levels. “We haven’t seen this since the ’70s to early ’80s. And, and so it’s new ground for leaders of organizations.”
White, whose organization employs 800 when fully staffed, said he increased entry-level pay by 25%, which created some wage compression among middle management, who received raises as well depending on length of service. “Inflation is crushing my employees, it’s hurting us as an organization significantly, and I’m dreading the heating bills coming in from our 58 different locations. It’s going to be an ugly winter.”
https://www.massnonprofit.org/expert_advice/financial_management/nonprofit-inflation-crunch-costs-rise-but-revenue-may-not-budge/article_549671bc-59ee-11ed-a21f-83774d9366cc.html