There is good reason beyond seeking a mission driven career to consider making a move to work in the nonprofit sector. Despite the economic downturn of the last two years, the sector continues to grow. In 2000, the number of nonprofits was about 800,000. By 2009, the number hit 1, 238,201! Nonprofits employ close to 10% of the country’s workforce. Most nonprofits are small – two thirds have budgets less than $500,000, but the top 5% have budget of $10 million or more.

The sector is vast. Many people don’t realize what exactly constitutes a nonprofit. Basically, a tax code classification defines an organization as such. There are two major classifications – a 501(c)(3) and 501 (c)(4).

The larger nonprofit entities are 501(c)(3)s which include hospitals, colleges and universities, museums and other cultural institutions, religious congregations, public television and radio stations, food banks and homeless shelters. To receive a 501(c)(3) classification, an organization must benefit the broad public interest which allows for any contribution to them to be considered a tax deduction. Foundations such as the Ford Foundation, the Bill and Melinda Gates Foundation and corporate foundations are also considered 501©(3)s, but instead of receiving donations from many individuals, these foundations are funded having received one large gift from one family or from one corporation.

The other nonprofit major classification is the vast world of 501 (c) (4)s. These are community organizations such as your local Rotary, The National Rifle Association, Women’s Clubs and other community and membership organizations. These organizations cannot accept tax-deductible contributions because they exist for their members, not for the public benefit. They are able to participate in legislative lobbying, advocacy and political campaign activities.

In addition to the major nonprofit classifications, there are others: 501(c)(5)s – labor unions; 501(c)(6)s – chambers of commerce, trade and other business associations such as the American Institute of Certified Public Accountants and the American Medical Association, and 501 (c)(15)s which includes insurance cooperatives like Blue Cross/Blue Shield.

So, when you think about making a switch to the nonprofit sector, you may not realize that you have such a broad group of organizations to investigate!

As I discussed in my previous post, the easiest way to make the switch from a for-profit organization to nonprofit is to target the same function you are already performing. Here are some fields where people can migrate their skills to the needs of the nonprofit sector:

Accounting/Banking/Finance

General Administrative Roles – All organizations need good accountants and business officers. One organization that focuses on those roles at colleges and universities is the National Association of University Business Officers (www.nacubo.org).

Microfinance – Two of the “hot” areas in nonprofits are domestic and international growth of organizations. Check out the Acumen Fund (www.acumen.org), ACCION Fund (www.accionusa.org), and Kiva, (www.kiva.org). Reading up on these groups will give you an idea of what this area is all about.

Planned Giving – This is an area of fundraising involving trusts and estates. Private financial advisors and those involved in private banking may find this area a way to move into the fundraising area of a nonprofit. Check out the National Committee on Planned Giving (www.ncpg.org) and the Association of Fundraising Professionals (www.afp.org).

Health Sciences/Pharmaceutical

This is a very “hot” area. If you are senior enough go for the gold standard, take a look at the job listings at the Bill and Melinda Gates Foundation. But, don’t despair if you aren’t a world authority. Take a look at the Global Health Council (www.globalhealth.org). This is an organization of almost all groups – both for profit and nonprofit – involved in the many serious health issues facing the world.

Human Resources/Training

This is another “hot” area, especially domestically. “Workforce development” and “adult learners” are the buzz words nonprofits use when referring to helping people develop job skills, and they need professionals to do that training. Many of these positions may be affiliated with state and local government. Take a look at the National Association of Workforce Development Professionals website to find out more (www.nawdp.org).

Real Estate/Retail

Low income housing, business improvement districts and economic development are areas where real estate and retail store professionals can focus if interested in a mission driven focus. Take a look at what the business improvement districts in your local area are doing. The Local Initiatives Support Corporation (www.lisc.org) is a leading national organization in this area.

Another area for those in retail is the growth of shops in museums and other cultural institutions. Take a look at the Museum Store Association website (www.museumstoreassociation.org).

Strategic Planning/Project Management/Evaluation

This is a super “hot” area. If you are lucky (or unlucky) enough to have spent the past few years pouring out your blood, sweat and tears at a top consulting firm, you are in great demand. All of the large foundations and the health-related and social service nonprofits take a serious view of evaluation and strategic planning. The buzz words are “program evaluation” and “qualitative research”. This area is vast, so you might want to start with a visit to the American Evaluation Association website (www.eval.org).

Technology

In some ways, the nonprofit world is your oyster. Large and small, nonprofits need great IT people. In addition to just good old tech support, the nonprofit sector is a leader in the use of social networking to maintain an on-line presence. NPower (www.npower.org) and Tech Soup (www.techsoup.org) are good places to start.

Other good sites for information on the nonprofit sector include:

American Society of Association Executives – www.asaecenter.org
ARNOVA – www.arnova.org
ExecSearches.com – www.execsearches.com
The Foundation Center – www.foundationcenter.org
Independent Sector – www.independentsector.org
Relief Web – www.reliefweb.int
Stanford Social Innovation Review (SSIR) – www.ssireview.org
Urban Institute – www.urbaninstitute.org

Carmel Napolitano is a New York City based independent executive search consultant for the philanthropic, nonprofit, and public sectors. With over 20 years of experience, Carmel started her career in higher education fundraising, She has an exceptional track record of placing senior staff at local, regional, national, and global organizations. For more information take a look at her website, www.cgnassociates.wordpress.com or email her at cgnexecsearch@gmail.com.

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Last updated on November 13th, 2015 at 03:58 pm