Workforce Development

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Too many working Americans are stuck in jobs that don’t pay enough and lack clear pathways for upward mobility and higher earnings. Meanwhile, some sectors of the economy — healthcare is a notable example — are facing labor shortages that are projected to worsen in coming years. Donors seeking to address these challenges through workforce development initiatives can give to nonprofits focused on job training and adult education, or can back advocacy for more inclusive hiring practices or systemic change to create more job opportunities and equitable access to good jobs. This brief highlights leading philanthropic strategies and offers guidance for donors new to this space to get started with their giving. 

Strategies for Impact

Nonprofits are engaged in a range of efforts relating to workforce development. All this work is important and could benefit from greater support. Below, we discuss areas where donors might focus their funding and spotlight several organizations that represent the kind of nonprofits that donors might consider supporting.  

  • Support adults seeking education through community colleges, vocational schools, credentialing programs and scholarship funds. For people seeking better jobs, more income and a stronger long-term career path, education is often the first step. Donors can help by giving directly to educational and training programs, like a local community college or vocational school. Another avenue for funders is to donate to scholarship programs. The Foundation for California Community Colleges, for instance, provides more than 6,000 scholarships a year, and donors can make online contributions to support them. Donors can also back scholarships dedicated to specific communities, for example, by giving to the American Indian College Fund. 

  • Give to nonprofits focused on job opportunities and readiness. After education, the biggest challenge for workers is getting connected to the right employer and making sure they are fully prepared to enter the workforce. Donors can support organizations helping people find and keep jobs, such as Goodwill, the largest nonprofit in this space; YouthBuild, which helps young people chart a career path; the Center for Living and Learning and Chrysalis, both based in California, as well as the national OIC of America. 

  • Back advocacy to expand opportunity and address systemic issues. Donors who want to address the systemic causes of workforce issues can give to nonprofits engaged in advocacy, such as Opportunity@Work, which is trying to “rewire” the U.S. economy for greater inclusivity, for example, by creating more job opportunities for people trained through routes other than formal education. Another group working on bigger-picture changes is Jobs for the Future, whose initiatives include rethinking education and work, opening up opportunities for formerly incarcerated people, and creating equitable pathways to success for people in poverty.

Insights and Advice

In considering which impact strategies to support, donors should take into account their personal interests and outlook to find the best fit. They should also keep an eye out for emerging opportunities to give with maximum impact for workforce development. Here, we offer some insights and suggestions:

  • Think locally. Whether it is your local community college, a local Goodwill or an initiative like the Ezra Network of the Jewish Federation of Los Angeles, which provides job counseling for people re-entering the workforce, there are many opportunities for donors to give to nonprofits and programs in their own backyards. This can allow a donor to form a relationship with a local organization, while making an impact on people’s lives and livelihoods in their own communities. 

  • Remember that there is no one-size-fits-all solution. While workforce shortages and lack of stable, good-paying jobs are issues that affect millions of Americans, different people are impacted in different ways. A single parent, for instance, may need support with child care even to apply for jobs. People with disabilities may need legal support to address accessibility issues. Formerly incarcerated people, immigrants and refugees, and others face specific barriers when it comes to seeking employment. Donors can address these barriers and increase opportunity by giving to nonprofits dedicated to specific communities.

  • Keep worker rights in mind. Empowered workers are better able to demand better wages and benefits, as well as employer policies that create upward mobility in the workplace. Donors can advance these efforts by supporting groups organizing workers, such as the National Domestic Workers Alliance and Restaurant Opportunities Centers United. 

For Donors Getting Started

Donors who are new to this space should take the time to learn about the landscape. A good place to start is by reading IP’s State of American Philanthropy brief on Giving for Workforce Development and Workers’ Rights. In addition, peruse recent articles that IP has published about this area of philanthropy. You might also want to read our donor brief on giving for workers’ rights. Some of the organizations mentioned above, such as Workforce Matters, and think tanks like the Brookings Institution and Urban Institute, also offer information and insight about workforce development. The Giving Compass also has an excellent overview of this area. 

To find local or national nonprofits in the workforce development field that are well respected, Charity Navigator is a reputable place to search for organizations around the country.

But the best way to get started giving for workforce development is to make some initial gifts, get to know the work of the groups you’re supporting, and connect early with a funding intermediary that can help you learn more about this giving area and increase your giving in a thoughtful way. 

Have suggestions for improving this brief? Please email us at editor@insidephilanthropy.com.