In my recent posts, we’ve been talking about making a switch from the for- profit sector to the nonprofit sector. We’ve looked at what you need to ask yourself before making the switch, and we’ve outlined some of the practical steps you can take to make a move.

So, you’ve done all your soul searching and have now secured a great position in your dream nonprofit.  Here are some of the “differences” you can expect to encounter (And, like everything in life, there is a good and bad side of many of these situations):

1)      Many Stakeholders — In a corporation, it is clear who in charge. In a private company, the owner/s are in charge, and in a public company, it is the board/shareholders.  In a nonprofit, though, well, the list can go on and on.  The nonprofit is driven by its mission rather than by the bottom line. A technology executive who switched into the nonprofit sector by going to work for major philanthropic foundation knew that she was leaving an environment where the bottom line was the measure of success.  Now, at the foundation, success is a moving target. Or, rather, multiple targets:  She has the president and board of the foundation to please; She has to please the organizations to where she makes grants; She has to worry about what the communities where her grantees are located think about her decisions.  And the list goes on and on.

Think about it – at a university, invested parties include professors and staff, students and parents, and the local community.  The number alone of those invested (and watching!) can make your head spin!  A nonprofit is even more accountable to its board than is a corporation to its board. In a nonprofit, the board is motivated by public service and not by money.  Money is money and everyone can agree on the value of a dollar.  Dealing with a board and other stakeholders that have many competing agendas has its challenges.

2)      Decision Making — Certain decisions on in a nonprofit can take longer you might be used to in a for-profit company.  For instance, in a large corporation, a manager may be able to sign off on anything up to $2000. But, finances vary from nonprofit to nonprofit.  So, in a nonprofit, even the purchase of a ream of paper can be held up in purchasing.  While there is much criticism about accountability in a nonprofit, my experience is that accountability is taken very seriously as, among other issues, vendors must be approved through a maze of regulations, and hiring is not simple particularly at larger organizations receiving government funding.

A great example of accountability with regard to hiring issues comes from comparing when I worked at a large university versus a later experience when I worked in a for-profit company.  At the university, it seemed almost everyone but I had a say in a job description for a new position. It was a requirement of Human Resources to vet all of the applicants. I was not allowed to interview anyone unless HR saw them first.  On the flip side, I had a very different from my experience when I went to work at a management consulting firm. There, I had a critical hire to make.  When I found the person, I was in a tizzy about how to follow the proper procedures.  When I went to the COO and asked what forms, etc. I needed to get, he said, “Tell them they have the job and to bring two pieces of ID when they come in to start.” In the private sector, it took about two weeks to hire someone. In higher education, it could take six months just to get the position description approved.

3)      Technology Issues – Technology is one of those good/bad factors within a nonprofit.  If you are with a large university or medical organization, it is likely that you will have top notch technology at your finger tips. In fact, it may be better than that in the private sector. Universities in particular put a strong emphasis on having great technology, and many firms, such as IBM, HP, and Microsoft, strongly value their education clients. Hence, great service is provided.  But, if you are at a small, grass roots organization or one that doesn’t quite value technology, its will be very slow going to obtain it. Perhaps this is where your private sector experience will come in handy; show a nonprofit employer how to save money with new technology, and you will be a hero.

4)      Varying Measurements of Success — At large and small organizations, senior staff members take on many roles. They are often expected to do more with less in shorter periods of time all the while considering more opinions and keeping more people happy than are required of their for-profit counterparts. And, the result of this hard work is often intangible. There has been much headway made in the field of evaluation and capacity building, but it isn’t and never will be as clear cut as in the business sector.

5)      Emphasis On Relationships – The for-profit sector has pretty much one measure of success – the bottom line.  In a nonprofit organization, success is a moving target.  Hence, developing good relationships across the organization and across the community as a whole contributes more to your success than tends to be the case in a business. Often, there is not a clear line of authority; you need to please many masters. Another difference is with regard to your competitors.  In the nonprofit world, it is actually good to seek out your competitors, and share information with them! What a novel idea!

Another relationship factor includes your colleagues. Those with whom you work in a nonprofit tend to be very passionate about the organization. In fact, it may be passionate to the point that it may challenge your level of comfort.  At one point in my career, I worked at museum that specialized in archeology and anthropology. While I had an interest in those subjects, I had no desire to be consumed by it 24 hours a day. But, many of my colleagues did. Many of them had spent all of their adult lives in pursuit of a PhD in a very academically competitive field – they better have loved it!  Once you sign on with an organization, be prepared to attend special events and other functions in off hours. It is part of the job and is expected of you.

For those who have made the switch to the nonprofit sector – what do you think? What are some of the things you would add to this list?

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.