About once a month, someone reaches out to me about finding a job in the nonprofit sector. At some point during the conversation, the terms impact, changing lives, and meaning will come up—every time. More often than not, whether my coffee date is transitioning from the for-profit sector or emerging from a University ready to start their career, they expect a competitive salary and wish to work within their gifts. They imagine something far different from what I’ve experienced in my nonprofit leadership jobs. This could be a book, but I’ve narrowed it down to the five things I think anyone considering a step into Nonprofitland should consider.
You will need to know how to run a business.
Passion and people skills, unfortunately, are not enough. The notion that hard skills such as financial acumen and policies/procedures can be delegated or outsourced is dangerous. When you step into a nonprofit leadership job, you’re stepping into the position of responsibility for an entity that, at the end of the day, is a business. While you may be able to outsource or delegate large portions of the business operations, you also need to be able to supervise these areas and ensure they’re running smoothly. Without a clear understanding of the organization’s financial position, compliance requirements, and operations, there is a higher risk of fraud and mismanagement.
People tend to lean into the areas where they feel the most satisfaction and realize the most success. For nonprofit leaders, that is often into programming and team development and away from business matters. If you naturally lean away from the business side of things, build systems that create strong accountability and checks and balances. Learn the basics and discipline yourself to maintain oversight. Work with a coach who can help you identify risks and opportunities. Most importantly, be inquisitive. Swallow your pride and ask dumb questions. Risk offending and ask hard questions. It’s your job.
You can’t earn money you haven’t earned yet.
Nonprofit leadership jobs should absolutely pay market wages. The catch is that if you’re joining a struggling, young, or declining organization, it may simply not be possible. Organizations cannot pay salaries that are unaffordable…at least not for long. We readily accept this in the for-profit world: If you start a business, you may not be able to draw a salary for a year or more while the business grows. In the nonprofit world, we have fantasies of startup grants and donations specifically for wages. While there may be exceptions, both funding avenues are largely mythical.
If you’re considering a nonprofit leadership position, ask questions upfront about the organization’s financial sustainability. If a market-level salary is not possible immediately, get a commitment (in writing!) from the board that the salary will increase or a performance-based bonus will be paid when the organization raises adequate funds.
There is no reliable way to automate, outsource, or fully delegate fundraising.
I’ve yet to see a situation where a fund development team member of any level of experience or title lifts the fundraising burden for a nonprofit from the executive director. Nor have I ever found a technology or training solution that allowed a leader to step back from the fundraising process completely. As a consultant, I can attest that our team—our very talented and well-trained team—is not a fit if you’re looking to fully outsource development.
Nonprofit leaders must do hard things, including cultivating donor relationships and putting themselves out there to raise support. The good news is that building a fundraising team, leveraging technology to help with research, tracking, and reporting, and getting expert help from consultants or trainers are all ways to ease the burden you will have to carry as a nonprofit leader.
If you’re not passionate about the cause, you’ll lose interest.
Passion is not enough (see #1), but it is directly tied to job satisfaction in a nonprofit leadership job. Authenticity is critical for garnering support, and without support, your cause will fail. And no matter how great the payday or perks, you’ll lose interest in a job you’re not succeeding in.
Passion helps nonprofit leaders see beyond the day-to-day obstacles and endure the frequent struggles of serving others and raising support. If the job involves leadership of a team or volunteers, passion is all the more critical. Nothing sinks a boat faster than a captain looking to jump ship when something better comes along.
Don’t sell yourself or a mission for which you have lukewarm feelings short. Seek a role where you’re sure your time and talents work toward a cause you believe in.
Reporting to a board is a whole new ball game.
This section could be pages long, but I’ll keep it light: reporting to a board of directors is one of the reasons nonprofit leadership can be so challenging. Rather than meeting the expectations of one supervisor, you can end up working with 5..11…daresay 23 supervisors! Your meetings will be guided by language no one uses in everyday life—who is Robert, and why do we follow his rules? It’s a lot to manage, and as counterintuitive as it may seem, managing the board is part of your role as a nonprofit leader.
A few bits of craziness you’re sure to encounter (brush them off to a broken governance model):
- You’ll never communicate in a way that pleases everyone. Whether you hand-deliver a bound board packet or invest in top-of-the-line board management software, someone will not be able to open/find/download the board packet…and that is your fault (kidding).
- Building relationships with your board is critical but challenging. Whether it’s conflicting schedules or diametrically opposed personalities, there will be a barrier with at least one board member. Try anyway.
- You’re the boss, but you’re not…well, yes, you are in some ways … sorta. The board of directors is the governing body of a nonprofit organization. They alone hold the legal and financial responsibility as far as the government is concerned. The day-to-day reality is much different as the executive director or CEO typically runs the organization. Will these multiple levels of leadership lead to confusion and disagreement? You bet.
All these caveats and hard truths aside, the nonprofit sector needs you. Nonprofit leadership is arguably harder than for-profit leadership due to the many stakeholders and enormous missions, but the rewards are significantly greater. Get informed. Ask good questions. Find the cause that’s right for you. If you need help navigating the financials, board, or anything else along your journey, we’re here to help.
