Monthly Newsletter

When a Trust Complicates Farm Succession Planning

Keeping a farm in the family is rarely simple. It is not just about land or assets, but about legacy, relationships, and the responsibility of passing something meaningful to the next generation. Even with …

Keeping a farm in the family is rarely simple. It is not just about land or assets, but about legacy, relationships, and the responsibility of passing something meaningful to the next generation. Even with thoughtful planning, older estate documents can create challenges that were never anticipated, especially as circumstances change over time. 

One situation that comes up more often than many families expect involves testamentary trusts. These trusts are often created to protect assets and provide structure, but years later they can limit flexibility when plans need to evolve. 

When the Plan No Longer Fits the Reality 

Consider a situation we often see in farm succession planning. A farmer lost his wife more than a decade ago, and as part of her estate plan, her share of the farmland was placed into a trust. The trust specifies that, after his passing, her portion of the property will be divided equally among their four children. 

Since then, one of those children has stepped fully into the operation and built his future around farming. The father made a promise that he would find a way to keep the farm intact so his son could continue. The challenge is that the trust no longer reflects that goal, and it cannot be changed. 

This is where many families find themselves. The plan made sense at the time, but life moved forward in ways no one fully anticipated. 

Working With What You Can Control 

Even when part of the plan is fixed, there is often still room to adjust other pieces. In this situation, the father still controls his share of the property, which gives him the ability to influence how things unfold. 

He could choose to leave his portion of the home farm directly to the farming son. While that does not solve everything, it reduces the amount the son would need to purchase from his siblings. Another option is to balance things by allocating additional land from another parcel, helping create a more workable outcome for everyone involved. 

These adjustments may not be perfect, but they can move the family closer to the original intention. 

Looking at the Numbers Differently 

In some cases, the solution is not about changing the structure, but about adjusting how value is shared. 

If the trust requires full market value for its portion, the father may be able to offset that by offering more favorable terms on the assets he controls. A deeper discount on his share can help create a similar overall outcome to what the family originally envisioned. 

This approach requires careful planning, but it can help balance fairness across the family while still supporting the goal of keeping the farm intact. 

Having the Conversation Now, Not Later 

In many situations, the most important step is simply having an open conversation. 

If the goal is to keep the farm operating, it helps to bring the family together and talk through what that means in practical terms. Would the other children be open to allowing their sibling to purchase the land over time? Do they share the same long-term vision for the farm? 

These discussions are not always easy, but they are far easier to have now than during a time of loss. When expectations are clear, families are better positioned to move forward together. 

Setting Expectations With Care 

One of the more difficult moments for any family is when a will is read and something feels unexpected. Without context, decisions can feel unfair, even when they were made with good intentions. 

Taking the time to explain the reasoning behind the plan can make a meaningful difference. When family members understand the limitations created by the trust and the goal of preserving the farm, they are more likely to see the full picture. 

Planning With the Future in Mind 

Situations like this are a reminder that estate plans should not remain static. Over time, land values change, tax rules shift, and family roles evolve. What worked years ago may not support the same outcome today. 

Revisiting these plans periodically gives families the opportunity to adjust while options are still available. It also creates space to think through both the financial and personal aspects of succession. 

At its core, farm succession is about more than transferring property. It is about creating a path forward for the next generation while maintaining fairness across the family. With thoughtful planning and clear communication, it is possible to move closer to both. 

At DBC, we work with agricultural businesses and families to bring structure and clarity to these conversations. By focusing on long-term goals and practical realities, we help guide decisions that support both the operation and the people behind it. 

To read the full article by Mark McLaughlin visit https://www.agriculture.com/how-to-keep-the-farm-in-the-family-when-a-trust-gets-in-the-way-11825875 

U.S. Farm Income Expected to Decline in 2026 Despite Increase in Government Payments 

The financial outlook for U.S. agriculture is showing signs of strain. According to the U.S. Department of Agriculture, net farm income is projected to decline in 2026, even as government support reaches levels not …

The financial outlook for U.S. agriculture is showing signs of strain. According to the U.S. Department of Agriculture, net farm income is projected to decline in 2026, even as government support reaches levels not seen in several years. 

At first glance, the change appears modest. Net farm income is expected to fall ~0.7% to $153 billion. After adjusting for inflation, the decline is more pronounced, dropping $4 billion, or ~2.6% from the prior year. What stands out is how much of that income is being supported by government programs. 

A Larger Share of Income Coming From Government Payments 

Government payments are expected to account for nearly 29% of total farm income in 2026. Without that support, the picture changes significantly. USDA data shows net farm income would fall nearly 12% to $109 billion. 

That shift highlights a growing reliance on federal programs to stabilize farm operations. As one agricultural advisor noted, government payments are doing much of the work in supporting crop producers right now. 

Support Levels Not Seen Since Recent Disruptions 

USDA projects direct government payments will reach $30.5 billion in 2025 and increase to $44.3 billion in 2026, not including crop insurance indemnities. These levels have not been seen since 2020 and 2021, when pandemic disruptions and trade challenges led to similar support. 

The increase is tied to Farm Bill programs responding to lower crop prices, along with continued supplemental and disaster assistance. 

At the same time, many producers are carrying higher levels of debt while depending more heavily on these payments to cover operating costs. 

What Is Driving the Pressure 

Several factors are contributing to the current environment: 

  • Lower crop prices influenced by global supply levels 
  • A surplus in grain markets 
  • Lost export demand tied to past trade policies 
  • Ongoing pressure from operating costs, even as some inputs begin to stabilize 

While fuel and pesticide costs are expected to decline, overall financial pressure remains. 

A Mixed Outlook Across Commodities 

Income expectations vary across the agricultural sector: 

  • Corn receipts are expected to increase 
  • Soybean receipts are projected to remain relatively steady 
  • Wheat receipts are expected to decline 
  • Livestock receipts may fall due to lower egg and milk prices 
  • Cattle receipts are expected to continue rising 

This uneven performance adds another layer of complexity for farm operators managing multiple revenue streams. 

A Broader Concern Across the Industry 

Lawmakers and industry leaders are raising concerns about the direction of the farm economy. Some have pointed to growing financial stress among producers, while others have warned of the potential for broader instability if conditions do not improve. 

The USDA’s February report, which incorporated delayed data due to a prior government shutdown, has made it more difficult for economists to fully assess the pace and depth of these challenges. 

What This Means for Farm Operations 

For many farm owners, the concern is not just this year’s numbers. It is what those numbers suggest about long-term stability. 

When a larger share of income comes from external support rather than core operations, it becomes harder to plan with confidence. Cash flow, debt management, and future investment decisions all become more sensitive to factors outside of day-to-day operations. 

This is where financial clarity becomes especially important. Understanding how your operation performs both with and without government support can provide a more complete view of risk. 

Moving Forward With a Clearer View 

Agriculture has always faced cycles, but the current environment is a reminder that strong production alone does not guarantee strong financial results. A record harvest can still lead to tighter margins when prices are under pressure. 

At DBC, we work with agricultural businesses to help bring clarity to these situations. By focusing on cash flow, cost structure, and long-term planning, we help you make informed decisions in an environment that continues to shift. 

To read the full article by P.J. Huffstutter visit US farm income set to fall in 2026 despite surge in government payments | Reuters 

Farmland Lease Checklist: 10 Essential Elements Every Agreement Should Include 

A farmland lease is more than a document. It sets the tone for the working relationship between a landowner and a farmer. When expectations are clear from the start, it becomes much easier to …

A farmland lease is more than a document. It sets the tone for the working relationship between a landowner and a farmer. When expectations are clear from the start, it becomes much easier to avoid misunderstandings later on. 

Some leases are built on long-standing relationships and trust. That foundation matters, but even the strongest relationships benefit from clarity. A well-structured lease helps both parties understand their responsibilities and protects the future of the land. 

Whether you are creating a lease for the first time or revisiting one that has been in place for years, there are several core elements worth reviewing.

1. Put the Agreement in Writing

Verbal agreements still exist in agriculture, but they often lead to problems. Many disputes can be traced back to details that were never clearly documented. 

Putting the agreement in writing is not about mistrust. It is about preserving the relationship by making sure everyone is aligned from the beginning.

2. Use the Correct Legal Names and Property Description

A lease should clearly identify who is involved. That means using full legal names for both the landowner and the tenant, especially when entities such as LLCs or corporations are involved. 

It is just as important to describe the land accurately. Including parcel numbers, acreage, and location ensures there is no confusion about what is being leased.

3. Clearly Define the Lease Term

Every lease should outline when it begins and when it ends. It should also explain whether the agreement renews automatically and what notice is required if either party decides not to continue. 

State laws may influence these timelines, so it is important to make sure the lease aligns with those requirements.

4. Be Specific About Rent and Payment Terms

Rent should be clearly defined. Whether the agreement is based on cash rent, crop share, or a hybrid approach, both parties should understand how payments are calculated and when they are due. 

It is also helpful to clarify how government payments are handled and what happens if the land is enrolled in a conservation program.

5. Outline Operator Responsibilities

The lease should explain what is expected from the tenant. This typically includes maintaining the land, following appropriate farming practices, and complying with state and federal regulations. 

It may also address how soil conditions and inputs are managed throughout the lease term.

6. Define Landowner Responsibilities

A strong lease works both ways. Landowners may have responsibilities such as disclosing known issues on the property or supporting improvements like drainage or conservation practices. 

Clear expectations on both sides help prevent future disagreements.

7. Address Fertilizer and Input Costs

Input costs can create confusion if they are not clearly outlined. The lease should explain who is responsible for different types of fertilizer and how those costs are shared. 

Agreeing on this structure in advance helps avoid issues during the growing season.

8. Include Insurance Requirements

Risk is part of farming, and a lease should address how that risk is managed. Both the landowner and the tenant should maintain appropriate liability coverage. 

Clear insurance requirements help protect everyone involved if an accident occurs on the property.

9. Include Hold-Harmless and Indemnity Provisions

Leases often include provisions that limit liability and define how responsibility is handled if something goes wrong. Hold-harmless and indemnity clauses help protect both parties when used appropriately. 

These sections may feel technical, but they play an important role in managing risk.

10. Plan for the End of the Lease

It is just as important to define how a lease ends as it is to define how it begins. The agreement should explain what happens when the lease term expires, including access to the property, harvest rights, and transition to a new tenant if needed. 

It may also address subleasing and how ownership changes could affect the agreement. 

Building a Stronger Foundation 

A well-crafted lease creates clarity, reduces uncertainty, and supports a stronger working relationship. It allows both parties to focus on the operation rather than worrying about what was or was not agreed upon. 

At DBC, we work with agricultural businesses and landowners to bring clarity to these types of agreements. With the right structure in place, you can move forward with greater confidence and fewer surprises. 

To read the full article by Cassidy Walter and Shawn Williamson visit https://www.agriculture.com/farmland-lease-checklist-10-essential-elements-every-lease-agreement-should-include-11746678 

Employee Spotlight: Trinity Kuipers

Since joining De Boer, Baumann & Company in 2026, Trinity Kuipers has brought curiosity, energy, and a thoughtful perspective to her role as a Staff Accountant. She enjoys understanding the story behind the numbers …

Since joining De Boer, Baumann & Company in 2026, Trinity Kuipers has brought curiosity, energy, and a thoughtful perspective to her role as a Staff Accountant. She enjoys understanding the story behind the numbers and the way financial insights can reveal challenges, highlight opportunities, and support better business decisions.

Trinity earned her Bachelor’s degree in Accounting from Davenport University. Her interest in accounting grew from firsthand experience running her own small business, where she saw how critical accurate financial information is to the daily operations and long-term success of a company. That experience continues to shape how she approaches her work today, giving her a practical perspective on the value that clear financial insight can provide to business owners.

Trinity grew up in Zeeland with her parents and two sisters and now lives on the north side of Holland with her husband. Being close to family is something she values deeply, and she enjoys the strong sense of community that comes with living and working in West Michigan.

Outside of her role at the firm, Trinity has a strong entrepreneurial spirit. During the summer months, she runs an ice cream shop with her sisters, a business she has proudly owned for eight years. Managing the shop has given her valuable experience working directly with customers, leading a team, and navigating the day-to-day realities of running a business.

Travel is another passion of Trinity’s. She enjoys exploring new places and cultures and has traveled throughout Europe, Africa, and Central America. These experiences have given her a broader perspective and a deeper appreciation for the people and communities she encounters along the way.

Trinity’s curiosity, work ethic, and entrepreneurial mindset make her a great addition to the team. We are excited to have her at DBC and look forward to seeing the impact she will continue to make.

Intern Spotlight: Getting to Know Our 2026 DBC Interns

Each year, our intern program brings new energy, curiosity, and perspective to DBC. Our 2026 interns come from a range of academic backgrounds and personal interests, but they share a common desire to learn, …

Each year, our intern program brings new energy, curiosity, and perspective to DBC. Our 2026 interns come from a range of academic backgrounds and personal interests, but they share a common desire to learn, contribute, and grow in a professional environment that values people as much as technical skill.

This year’s intern group includes Eden Boer, Matt Hoonhorst, Evan Gillespie, Ivan Radovic, Ethan Bosch, and Alex Welscott. Together, they represent the next generation of accounting professionals who are thoughtful about their careers and intentional about how they grow.

What Drew Them to DBC

Many shared that their first conversations with DBC felt genuine and welcoming. Interviews were described as two-way discussions rather than formal screenings, which helped set clear expectations and create an early sense of connection.

Several interns also noted the impact of meeting DBC team members at career fairs or through campus interactions. Those experiences reinforced the idea that DBC is a place where people are approachable, willing to teach, and invested in one another’s development.

Academic Paths and Career Interests

Our interns bring a range of academic experiences to the firm:

· Eden Boer is studying Accounting at Grand Valley State University and values maintaining balance between academics, work, and personal commitments.

· Matt Hoonhorst is dual enrolled at Grace Christian University and Davenport University, studying Christian Studies and Accounting, and plans to graduate in 2026.

· Evan Gillespie is a senior at Grand Valley State University, majoring in Accounting and participating in the five-year Master of Science in Accounting program.

· Ivan Radovic attends Aquinas College, where he is pursuing degrees in Professional Accountancy and Computer Information Systems.

· Ethan Bosch graduated from Cornerstone University with a degree in Accounting and a minor in Finance and is looking forward to gaining hands-on experience as he begins his professional career.

· Alex Welscott is a senior at Grand Valley State University, majoring in Accounting and preparing to begin studying for the CPA Exam upon graduation.

Across the group, early coursework played a meaningful role in shaping their interest in accounting, particularly classes that emphasized structure, problem-solving, and real-world application.

Life as a DBC Intern

No two days look exactly the same for our interns. Their work includes preparing tax returns, assisting with 1099s, supporting client projects, and learning firm processes alongside full-time staff. Interns rotate across teams and offices, which allows them to build relationships and gain exposure to different working styles and client needs.

Many shared appreciation for the guidance they receive from senior staff and managers who take time to explain not just what to do, but why it matters. That context helps connect day-to-day work with long-term professional development.

Outside the Office

Outside of work and school, they stay busy. Interests range from competitive sports and fitness to fishing, hunting, travel, and time with family and friends. Some enjoy collecting memorabilia or following auto racing, while others recharge by being outdoors or staying active year-round.

These interests reflect an understanding that long-term success in public accounting requires work-life balance and perspective.

Looking Ahead

As they look ahead to the coming year, the group shared goals centered on strengthening technical skills, improving study habits, and taking on more complex work. Several are already thinking about CPA Exam preparation and how to approach it in a way that aligns with work responsibilities and personal commitments.

That awareness is exactly what we hope to support through the program. The goal is not to rush the process, but to help build confidence, encourage questions, and develop habits that will serve them well throughout their careers.

We are grateful for the perspective and enthusiasm this group brings to DBC and look forward to supporting them as they continue their accounting journeys!

When Pivoting in a Crisis, What Should Small- and Medium-Sized Not-for-Profits Prioritize First?

Periods of crisis force leadership teams to move quickly. Revenue shifts, program demand changes, and uncertainty increases pressure across staff and board. When facing disruption, many leaders immediately focus on diversifying funding or launching …

Periods of crisis force leadership teams to move quickly. Revenue shifts, program demand changes, and uncertainty increases pressure across staff and board. When facing disruption, many leaders immediately focus on diversifying funding or launching strategic planning conversations. 

Those steps matter. However, crisis response often requires deeper structural decisions that are less comfortable but more impactful. 

Below are three areas small- and medium-sized not-for-profits should evaluate early when pivoting. 

Make Clear Decisions About Staffing 

In times of instability, staffing structure deserves immediate review. Not-for-profits often delay difficult personnel decisions due to strong values around inclusion, loyalty, and belonging. While those values are important, maintaining roles that no longer align with strategy or financial reality can weaken the entire organization. 

Crisis periods often clarify which positions are essential to the organization’s future and which may be better suited for transition. Leaders should assess: 

  • Whether current roles align with the core mission and theory of change 
  • Whether workload distribution supports productivity and morale 
  • Whether the organization can sustainably fund each position 

If separations become necessary, they should be handled with transparency and fairness. Establishing clear, values-based severance policies supports both employees and organizational credibility. Financial sustainability and compassion are not mutually exclusive, but they must be balanced thoughtfully. 

Reevaluate Physical Space and Overhead 

Office space is another area that warrants review. The relationship between not-for-profits and physical space has shifted significantly in recent years. Many organizations no longer require the same square footage or fixed-location commitments they once did. 

Leaders should ask: 

  • What type of space is truly necessary to deliver programs effectively? 
  • How often is the space used, and at what cost? 
  • Could hybrid or shared-space models reduce overhead without harming service delivery? 

Reducing or restructuring space is not simply a cost-cutting exercise. It requires operational planning, clear policies for hybrid work, and investment in effective collaboration systems. If an organization pivots to remote or hybrid operations, it must also establish expectations for communication, accountability, and team cohesion. 

Evaluate Funding Alignment, Not Just Funding Volume 

During financial pressure, it can feel counterintuitive to step away from revenue. However, not all funding supports long-term sustainability. 

Grants and contracts should be evaluated for mission alignment and full-cost coverage. Leaders should assess: 

  • Whether funded programs still align with strategic priorities 
  • Whether the funding source covers true direct and indirect costs 
  • Whether accepting the funding requires maintaining roles or expenses that no longer serve the broader mission 

Funding that drives strategic drift or sustains non-core programming can create long-term strain. In some cases, choosing not to renew a grant or contract is a proactive decision that strengthens focus and impact. 

Walking away from misaligned funding signals clarity about purpose and reinforces disciplined governance. 

Balancing Strategy With Structural Change 

Diversifying revenue and engaging the board in strategy discussions remain important crisis responses. However, structural decisions around staffing, space, and funding alignment often have the most immediate financial impact. 

Crisis pivots require courage and careful change management. Clear communication, transparent decision-making, and alignment between board and leadership are critical throughout the process. 

At DBC, our not-for-profit specialists work with organizations to evaluate cost structures, assess funding sustainability, and align operational decisions with long-term mission goals. Thoughtful analysis and proactive planning can help organizations navigate disruption while protecting financial health and organizational integrity. 

To read the original article by Jeanne Bell, please visit https://nonprofitquarterly.org/when-pivoting-in-times-of-crisis-what-should-small-and-medium-sized-nonprofits-prioritize-first/ 

 

Four Fundraising Trends Not-for-Profit Leaders Should Plan for in 2026

Fundraising continues to evolve in response to economic pressure, shifting donor behavior, and rapid technology changes. While overall generosity remains strong, participation trends are changing. Many organizations are seeing fewer small-dollar donors and more …

Fundraising continues to evolve in response to economic pressure, shifting donor behavior, and rapid technology changes. While overall generosity remains strong, participation trends are changing. Many organizations are seeing fewer small-dollar donors and more reliance on larger gifts. 

As we move into 2026, sustainability will depend less on adopting the newest tool and more on using the right tools intentionally. Strong systems, responsible data practices, and consistent donor engagement will separate stable organizations from those struggling to adapt. 

Below are four fundraising trends not-for-profit leaders should prioritize in 2026. 

Artificial Intelligence Becoming Operational Standard 

Artificial intelligence is quickly becoming part of everyday fundraising operations. Many organizations now use AI-powered tools for donor segmentation, data cleanup, analytics, and reporting. Tasks that once required hours can often be completed in minutes. 

For larger organizations, predictive analytics and donor journey insights are becoming more common. Smaller not-for-profits are also gaining access to embedded AI features within existing platforms, making the technology more practical and affordable. 

In 2026, the most effective organizations will use AI to increase efficiency without compromising authenticity. Human oversight remains essential. Clear data policies and transparent communication about technology use will help preserve donor trust. 

Donor Privacy as a Competitive Advantage 

Donors are increasingly cautious about how their personal and financial information is handled. Trust in not-for-profits remains relatively strong, but concerns about transparency and data security are growing. 

Privacy practices can no longer be treated as a compliance exercise. They must be visible and intentional. Secure payment systems, clear consent options, and straightforward privacy policies influence whether a donor completes a gift. 

Visible security indicators, accreditation badges, and options such as anonymous giving or communication preferences reinforce credibility. Organizations that demonstrate responsible stewardship of donor data will strengthen trust and improve retention. 

Monthly Giving Providing Revenue Stability 

While small-dollar donor participation has declined in many sectors, recurring giving programs continue to grow. Monthly donors often contribute more annually than one-time supporters and provide predictable revenue that supports long-term planning. 

Recurring programs also allow donors to make manageable contributions over time. This structure can increase loyalty and engagement. 

Not-for-profits should review donor data to identify strong candidates for recurring programs and communicate the impact of sustained support. Shifting focus from one-time transactions to long-term relationships will improve stability in an unpredictable funding environment. 

Personalization Moving From Preference to Expectation 

Generic fundraising messages are becoming less effective. Donors increasingly expect communication tailored to their interests, giving history, and preferred channels. 

Technology now allows segmentation and personalization at scale. Strong customer relationship management systems help consolidate donor data and support timely, relevant outreach. Personalized acknowledgments, targeted campaign invitations, and communication frequency preferences all contribute to a stronger donor experience. 

However, personalization should focus on relevance, not volume. Asking donors how and when they prefer to hear from you, and honoring those preferences, reinforces respect and builds trust. 

Planning for a Sustainable 2026 

Fundraising in 2026 will require both discipline and adaptability. Organizations must balance innovation with sound governance. Operational efficiency, responsible data management, recurring revenue strategies, and thoughtful personalization will be central to long-term success. 

At DBC, our not-for-profit specialists help organizations strengthen financial systems, evaluate fundraising sustainability, and align operational strategy with long-term mission goals. Clear planning today supports stronger donor relationships and more stable growth in the years ahead. 

To read the original article by Raviraj Hegde, please visit https://www.forbes.com/councils/forbesbusinessdevelopmentcouncil/2026/02/03/4-fundraising-trends-every-nonprofit-leader-should-plan-for-in-2026/

When Not-for-Profit Staff Want Raises You Cannot Afford

Compensation conversations are among the most difficult challenges not-for-profit leaders face. Many organizations have worked intentionally to improve equity, transparency, and work-life balance. As a result, expectations around salary growth, retirement benefits, and cost-of-living …

Compensation conversations are among the most difficult challenges not-for-profit leaders face. Many organizations have worked intentionally to improve equity, transparency, and work-life balance. As a result, expectations around salary growth, retirement benefits, and cost-of-living adjustments have risen. 

That is not a failure. It often reflects a healthier culture. The challenge arises when revenue is stable or limited, and financial realities do not support the level of compensation staff reasonably hope for. 

Navigating these conversations requires clarity, honesty, and structure. 

Start With Shared Financial Understanding 

Transparency alone is not enough. Sharing a budget spreadsheet without context can create confusion or misinterpretation. Staff need to understand not only the numbers, but what those numbers mean. 

Leadership should clearly explain: 

  • Where revenue comes from and how predictable it is 
  • Which expenses are fixed and which are flexible 
  • What obligations must be met before compensation increases are possible 
  • How cash reserves factor into sustainability 

When everyone understands the financial constraints, conversations shift from frustration to shared problem-solving. 

Separate Values From Financial Capacity 

Many not-for-profit organizations are mission-driven and equity-focused. Staff can advocate for fair wages and financial stability while still believing in broader social change. Those values are not in conflict. 

However, leadership must distinguish between what the organization values and what it can currently afford. A clear compensation philosophy helps. For example: 

  • Are salaries benchmarked to market data? 
  • Is there a formal approach to cost-of-living adjustments? 
  • How are raises prioritized when funding is limited? 

Documenting and communicating this framework reduces ambiguity and supports fairness, even when resources are tight. 

Provide Clear Timelines, Not Vague Promises 

It can be tempting to soften difficult news with hopeful language. Doing so often creates greater disappointment later. 

If benefit enhancements or salary increases are possible only after certain financial milestones are reached, say so clearly. For example: 

  • A retirement match may be feasible after a defined revenue target is achieved. 
  • Cost-of-living adjustments may depend on grant renewals or fundraising growth. 

Concrete conditions and timelines build trust. Unclear commitments weaken it. 

Create Structured, Ongoing Dialogue 

Compensation discussions should not happen only when frustration surfaces. Consider regular check-ins tied to budgeting and year-end planning cycles. 

Structured conversations might include: 

  • What feels most financially unsustainable for staff right now? 
  • What incremental improvements are realistic this fiscal year? 
  • If limited funds become available, how should they be prioritized? 

These discussions allow leadership to remain transparent while reinforcing financial stewardship. 

Protect Organizational Sustainability 

It is natural to want to meet staff expectations. Strong leaders care about their teams. However, increases that compromise long-term sustainability place both mission and jobs at risk. 

Sound financial governance requires balancing compassion with responsibility. That may mean saying no in the short term to protect the organization’s future. 

The goal is not universal satisfaction. It is maintaining credibility, fairness, and fiscal stability. 

How DBC Supports Not-for-Profit Leaders 

Compensation planning requires alignment between mission values and financial reality. At DBC, our not-for-profit specialists work with organizations to evaluate compensation structures, assess revenue capacity, and build sustainable financial models. Clear frameworks and proactive planning make difficult conversations more productive and less reactive. 

To read the original article by Sara Hudson, please visit https://nonprofitquarterly.org/what-do-you-do-when-your-nonprofit-staff-want-raises-we-cant-afford 

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