Careers With Nonprofit Organizations

CAREERS WITH

NONPROFIT ORGANIZATIONS

Institute Research Number 301 ISBN 1-58511-301-8

CAREERS WITH

NONPROFIT ORGANIZATIONS WORKING FOR CHARITABLE AND PHILANTHROPIC ORGANIZATIONS Executive Positions in Administration, Advocacy, Fundraising, and Public Relations Furthering a Cause You Believe In ARE YOU THE KIND OF PERSON WHO VOLUNTEERS FOR SERVICE PROJECTS? DO YOU

believe that people can work collectively to make society a better place? Do you get passionate about issues in your community? Do you have good communications skills and get along well with all types of people? Then you might want to consider a career working with nonprofit organizations. If you work for a nonprofit, you might fight disease, famine, or violence. The special interests of nonprofit organizations are limitless. Nonprofits may focus on a specific portion of the population, such as the elderly, or a specific community, such as an inner city neighborhood. They may build environmental awareness or health awareness. Nonprofit associations come in all shapes and sizes. Some nonprofits, like the American Heart Association, are national organizations with specialized staff. Other nonprofits, operate on a shoe-string budget with only one employee. The term nonprofit organization refers to the organizations’ tax status. The Internal Revenue Service gives tax exempt status to 25 categories of organizations. Nonprofit organizations that do charitable work often are called “501(c)(3)s.” This number refers to the subsection of the tax code that gives charitable and philanthropic organizations tax exempt status. There are about 700,000 charitable and philantropic nonprofit organizations registered with the IRS as 501(c)(3)s. 2

Although nonprofit organizations address a wide range of issues, they share a common activity. They fill the gap between what an individual can do and what government does. In fact, nonprofit organizations are sometimes called “the third sector.” Whatever their specific goals, all charitable and philantropic organizations embrace voluntary action for the common good. A number of things will determine the type of work you do at a nonprofit. Some organizations directly provide services or aid to people in need. Some organizations raise money to help fund the humanitarian or community services provided by others. A third type of charitable organization works to raise public awareness of an issue in order to improve health, encourage funding of research, or change laws. Although these organizations are called nonprofit, they still can and do generate revenue that exceeds expenses, which is like making a profit. Many people believe that nonprofits receive most of their funds from private contributions. Fundraising and donations are essential parts of a nonprofit, but organizations also may get funds by charging fees for their services, earning interest on reserves, or selling products. The government also may contribute funding through subsidies. Nonprofits try to build up a reserve fund to tide them over during times when contributions or income are down. A reserve fund also helps an organization respond to new and urgent needs.

What really distinguishes an organization as a

nonprofit is not how much money it has on hand or how it accumulated the funds. What makes a nonprofit charitable organization special is what it does with its revenue. Each nonprofit holds a public trust to improve the quality of life. Nonprofits use their funds to benefit society instead of owners or stockholders.

3

IS THIS THE CAREER FOR YOU? THERE ARE A NUMBER OF THINGS YOU CAN DO THAT WILL HELP YOU DECIDE IF THIS IS

the right career for you.

The most important action you can take is to volunteer. Most high schools and churches have service clubs, where you can donate your time to helping those in need in the community. These clubs may help out at hospitals, conduct food drives, tutor children, or provide services to the elderly. They may have fundraising campaigns for local, national, or international causes. You also can volunteer directly with a nonprofit organization. Most will welcome you with open arms. Nonprofit organizations have limited budgets, so they depend on volunteers to help them carry out their activities. They are always looking for help with their fundraising activities. As a volunteer for a nonprofit organization, you might help staff the telephones for a telethon, stuff envelopes for a mailing, or help usher guests at a special event. These activities will build community contacts, leadership skills, and give you experience in fundraising. If there are particular nonprofit organizations that interest you, read as much as possible about their work and operations. It is easiest to get this information from the organization itself. Each nonprofit publishes an annual report that will give you a summary of its programs, finances, and names of its board members and staff. Each nonprofit also has copies of Form 990, an Internal Revenue Service form that summarizes the nonprofit’s structure and finances. Check out the Web site of a nonprofit organization; it will tell you how to get this information. Finally, many of the skills you will use at a nonprofit are similar to the skills used in any management position. You can find out whether you enjoy using these skills by participating in school or work activities where you use speaking, planning, scheduling, budgeting, and computer skills. You should follow a college preparatory curriculum that emphasizes communication skills, taking as many courses as possible in English, speech, and journalism.

4

HISTORY OF THIS CAREER MANY NONPROFIT ORGANIZATIONS AND CHARITIES ARE ROOTED IN THE CHARITABLE

tradition of religious organizations. Their activities are connected to the widely held religious principal that charity means helping others.

Working to help those in need and to better your community also is an American tradition. Our nonprofit organizations spring out of that tradition. When the Puritans came to the New World, they adopted principles calling on all communities to give direct aid to their inhabitants. In early 18th century America, Benjamin Franklin argued that individual acts of charity could not solve the problems of poverty. He promoted the forming of associations of people to back projects that improved the community. This movement toward collective charity caught on, and by 1820, there were 2000 charitable and philanthropic associations in New England. The works of these organizations would become even more important during the 19th century, with the growth of cities and increased needs of the immigrants and poor that lived in these cities. Charitable organizations multiplied dramatically during the Civil War. Organizations called freedmen’s societies helped former slaves establish new lives. Citizens formed organizations to provide supplies and services to both the Union and Confederate armies. Relief funds were established for the widows and orphans of soldiers who had died. Sanitary commissions were set up to try to improve the conditions of camps, hospitals, and prisons. They inspected and cleaned the camps and hospitals, improved care of the wounded, and collected hospital supplies. During the late 19th century, wealthy industrialists formed foundations to give money to worthy causes. Individuals, such as Henry Ford, Andrew Carnegie, and John Rockefeller, created foundations that even today provide funding for activities aimed at improving society. In the 20th century, economic hardships and wars increased the role of charitable organizations. One important development was the concept of the “community chest.” In 1913, the Committee on Benevolent Associations of the Cleveland Chamber of Commerce approved a list of charities that could solicit contributions from members of the Chamber. The Chamber established a Federation of Charities and Philanthropy, governed by community leaders, to raise money for the approved charities. This concept was so successful, that by 1929 there were community chests in 129 cities. These community 5

chests are the forerunners of United Way agencies that are active in our communities today. During World War I, the Red Cross became prominent. Twenty-one million people joined the Red Cross and the organization collected $400 million. Similarly, the Red Cross raised millions of dollars during World War II to aid US soldiers and provide relief services in war-torn areas. Today, government agencies provide billions of dollars of funding to help the needy and communities. There still are many gaps, however, and it is the work of nonprofit organizations to fill those gaps. The term “nonprofit organization” refers to how charitable and philanthropic organizations are classified for tax purposes. All nonprofits are exempt from federal income tax and in most cases, state, and local taxes. This is not unique to the United States. The belief that churches and other organizations operating for the public good should be tax exempt can be traced to ancient times. There are a number of reasons government gives nonprofit organizations this special status. Nonprofit organizations relieve the government’s burden by providing services that government might otherwise have to offer. In this way, government receives a direct benefit from the tax exemption that allows the organizations to continue their work. Nonprofit organizations provide important services and improve society even when they are doing things that are not expected of government. Nonprofits encourage civic involvement, provide information on public policy issues, encourage economic development, and do many things that benefit the public. Taxing nonprofits would be counter-productive because taxing these organizations might impact the viability of many worthwhile nonprofits. Exempting nonprofits that have a religious affiliation from taxes preserves the separation of church and state. Because religious nonprofits are tax-exempt, the government cannot use taxes to tax an organization out of existence if it does not support its views.

6

WHERE YOU CAN FIND A JOB NONPROFIT ORGANIZATIONS ARE CREATED TO ADDRESS LOCAL, STATE, REGIONAL,

national, and international issues. Depending on the organization you work for, you may work overseas or you may work in your own neighborhood.

There is a vast array of nonprofit organizations. Nonprofits address civic, social, and health issues. You can choose to work with an organization involved with issues that are of special concern to you. You also may choose to work for an organization based on its size and location. In the United States, there are about 23,000 national nonprofit organizations. Most national organizations have offices in Washington DC, Chicago, or New York. The main types of nonprofit organizations are: Charitable organizations Voluntary health agencies Civic organizations Foundations

Charitable Organizations Charitable organizations are groups that

traditionally take care of society’s needy. This type of nonprofit provides direct help or financial assistance to individuals who have social, economic, or legal problems. Some nonprofits in this category offer disaster relief services by using donations to purchase and provide food, shelter, medical care, and counseling. Examples of this type of nonprofit organization include the Salvation Army and the American Red Cross.

Voluntary Health Agencies Voluntary health agencies are

nonprofit organizations that address specific health issues. Most often, the voluntary health agency targets a particular illness or health condition. Examples of this type of nonprofit organization include the American Heart Association, the March of Dimes, and the Sudden Infant Death Syndrome Alliance. 7

Voluntary health agencies are major sources of educational information on the health conditions that they address. People who have these conditions and their families are able to find support resources through these agencies. These nonprofit organizations also are advocates for spending on research, treatment, and prevention of particular health conditions.

Civic Organizations These nonprofit organizations work to improve

life in a particular neighborhood or city. These organizations may include active supporters of local historic preservation, business development, educational programs, beautification initiatives, or development of the arts.

Foundations This type of nonprofit organization makes grants to

support the beneficial works of individuals or other nonprofits. Most do not directly provide charitable services. There are almost 50,000 foundations in the United States. The main types of foundations are private foundations, operating foundations, and community foundations. Private foundations often initially are funded by the wealth of an individual or family and use income from investments to make grants to charitable nonprofit organizations. Operating or supporting foundations are private foundations that use the bulk of their resources to carry out their own charitable programs, rather than by making grants to other nonprofits. Hospitals and colleges often form this kind of foundation to raise funds to support their activities. Community foundations pool contributions from donors within the community and allocate grants for activities within the local community. There are more than 500 community foundations in the United States.

8

THE WORK YOU WILL DO IN A NONPROFIT ORGANIZATION, THERE ARE MANY TYPES OF WORK THAT NEED TO BE

done. Employees of a nonprofit are responsible for tasks related to administration and management, public relations, fundraising, advocacy, meeting planning, education, and client services. Many of the activities of nonprofits are intertwined. Staff with one type of responsibility will work on projects with members of other departments to help achieve the organization’s goals. For example, an organization’s fundraising or advocacy staff will work with public relations staff to develop and communicate the organization’s message. In small organizations, all of these activities may be carried out by only a few employees with the aid of unpaid volunteers. The executive director and one or two assistants may perform all the functions of the nonprofit. Larger nonprofits have individuals responsible for each of the main activities or may have entire departments dedicated to carrying out these functions.

Administration and Management Although nonprofit

organizations are not in the business of making a profit, their employees carry out many of the same activities as a for-profit business. Usually, the person responsible for the overall administration of the organization is the executive director. In larger organizations, the executive director may have administrative staff specializing in accounting, planning, or human resources to help in management of the organization

9

Executive directors and any administrative staff direct the day-to-day operation of the nonprofit organization. They develop budgets and short-term and long-term business plans. They hire and fire staff and review salaries and benefit packages. Executive directors and administrative staff make decisions about major purchases, such as computer equipment, and negotiate office leases. They also report to and staff the organizations’ board of directors. Executive directors and their staff implement the nonprofits’ policies and goals. As the head of the nonprofit, the executive director also has responsibilities as the organization’s chief spokesperson. An executive director makes public appearances on behalf of the organization, gives speeches, participates in fundraising events, and represents the organization on coalitions. The executive director also will travel to meetings with regional, national, or international affiliates.

Public Relations Public relations is an important activity for all

nonprofit organizations. Nonprofits work hard to get the message out about their special concerns. Public relations staff are responsible for informing the public about the organization, its interests, and its activities. One important way that they do this is through media publicity. Public relations staff give information to the media by issuing short summary statements called press releases. A press release talks about one event or issue that the organization believes is newsworthy. Public relations staff also may generate media coverage by meeting with editorial boards. These boards are responsible for deciding what is covered in their particular media’s communications. By developing relationships with these boards, public relations staff increase general awareness of the organization, which may later lead to a news story. Sometimes public relations staff help the media in interpreting the latest study or discovery on a topic. Press reporters often look to nonprofits involved in health issues to help explain new information in a way that the general public can understand. Public relations staff also communicate information about the organization through in-house media. They may write news stories for publication in the organization’s brochures, newsletters, magazines, booklets, or Web site. Another way that the public relations staff bring attention to the organization is special events. 10

Public relations staff at nonprofits coordinate all the details of these events, which may include exhibits, conferences, awards ceremonies, celebrations, or demonstrations. Public relations staff also may use public speaking engagements as an opportunity to get the nonprofit’s message across. They arrange for leaders from the organization to make public appearances to build awareness of the organization, draw attention to an issue, or generate media coverage. The public relations staff not only handle the details of the speaking engagement, they also may write the speech and a press release about the speech. A public relations staff member also may act as spokesperson for the nonprofit. At a larger organization, public relations responsibilities are clearly defined. Specific people carry out each individual task, such as media relations or speech writing. In a smaller organization, public relations may be a part of everyone’s job.

Fundraising For nonprofit organizations, public relations is often

closely related to fundraising. People must be convinced of the value of an organization before they will contribute to it. Fundraising is a major activity for most nonprofit organizations. These organizations could not exist without donations or grants from individuals, corporations, foundations, or government. During the 1990s, cuts in federal funding to charitable causes increased the need to raise funds from private sources. The fundraising staff of a nonprofit develop and direct programs to raise funds for the organization. Many nonprofits have a designated development director or outreach coordinator who is in charge of fundraising. Since fundraising is a continual activity, staff must develop and plan a series of activities to bring in contributions. These activities may include telethons, phone solicitations, marathons, direct mailings, and advertising. Staff must arrange for media coverage of these events in order to reach the maximum number of potential contributors. Fundraising staff also must recruit and train volunteers who help in fundraising campaigns. Nonprofit organizations also solicit major contributions from large corporations and wealthy individuals. Fundraising staff meet one-on-one with these potential contributors and make presentations to solidify their support.

11

Advocacy Nonprofit organizations are often powerful advocates of

public policy. They speak out in order to influence public perception and government action. Nonprofits work with city, state, and federal government to ensure appropriate funding and to craft legislation. Staff working at a nonprofit organization must make sure the organization’s voice is heard and good relations are maintained with the appropriate members of government. They must be aware of the nonprofit’s key issues and monitor government activities or proposals that could affect these issues. Nonprofit staff uses a number of tools to advocate the positions of their organization. They may testify at public hearings or issue public statements. If a nonprofit works on joint programs with government, it will have input into how government structures the programs. The nonprofit also will provide government leaders with data and information that help the leaders form policy positions. Nonprofit organizations sometimes organize grassroots lobbying campaigns, where the nonprofit urges members of the public to contact their elected officials and express their support for the nonprofit’s position. Grassroots lobbying includes letter-writing and telephone-calling campaigns. The nonprofit organization also may contact the media and try to convince editors to support the organization’s viewpoint. If an organization is large or politically active, it may have a director of government relations. The director guides the legislative and regulatory programs and maintains close contact with legislatures and agencies. An organization also may have a lobbyist on staff. The lobbyist makes direct contact with legislators in order to influence legislation. However, even a small nonprofit, without a government relations staff, may be called upon to present the organization’s views before local governing bodies such as the city council, school or park district board, environmental or zoning commission, or the highway commission. There are laws and regulations that limit how much time and money a nonprofit can devote to lobbying. Also, private foundations are not permitted to lobby at all. Charitable nonprofit organizations are not permitted to take part in political campaigns, but they may work to educate voters about candidates’ positions and to educate candidates about the positions of the organization.

12

Meeting Planning

Another type of work that goes on within a nonprofit organization is meeting planning. Most organizations sponsor meetings, seminars, and conferences. If an organization is large enough, it may have a specific staff responsible for planning these functions. Staff will set a budget and dates for the meeting. They will then book space where the meeting is to be held. Before booking a meeting location, the planner may visit different sites and negotiate prices with facilities. Once a site and date are set, the meeting planner arranges and coordinates all activities at the meeting site. This includes travel, hotel, food, and entertainment arrangements. They also work with the meeting facility to ensure that any needed displays or audiovisual equipment are set up.

Education Some nonprofit organizations conduct educational seminars or workshops. If an organization is involved in this type of training, staff will be responsible for developing the program’s curriculum as well as the logistics of the seminar. They also will be responsible for developing educational materials for attendees. If educational programs are one of the nonprofit’s primary activities, it may hire a director of education to develop and administer its programs. Client Services

Some nonprofits provide direct assistance to members of the community who have special needs. At this type of nonprofit, some staff will be responsible for interviewing clients, assessing their needs, and evaluating their eligibility for assistance. Staff will be responsible for ensuring that individuals receive the assistance they need. They may direct clients to other resources and do follow up monitoring of clients.

13

NONPROFIT STAFF TELL YOU ABOUT THEIR CAREERS I Am the Executive Director of the United States Branch of an International Humanitarian Organization Providing Emergency Medical Services and Disaster Relief Worldwide “I have always

been very involved in community organizations, even while I was in school. In high school, I participated in volunteer projects in the community. For example, my school’s youth service organization had a project where we dressed up as clowns and visited children’s hospitals. As a student, whenever I would take aptitude tests, the results always pointed to a career in a ‘people industry.’ I received a bachelor’s degree in social work. I then worked as regional director of a youth services organization for a three-state area. I planned community activities for kids and traveled throughout the states. After three years, I returned to school to get my master’s in social work. My master’s program concentrated on administration, public policy, and organizations; it did not have a clinical emphasis. This is where I picked up my background in business. I learned about bookkeeping, fund development, and political advocacy. After earning my master’s degree, I took a job as executive director of a local organization that focused on ensuring legal elections. After a few years, I took a job with a senior nutrition program that delivered meals to seniors within a large metropolitan county. It was fascinating to see the range of people from affluent to poor, but it was frustrating to deal with government funding policies. At the time, the federal government was pouring money into meals served at central facilities, even though more seniors were being discharged from hospitals early and needed home-delivered meals.

14

With the government money, you also had to use it or lose it by the end of each year. This created some strange situations. One time, the government allocated money in our budget to purchase computers. When we went to buy the computers, the store donated the equipment. The problem was that we couldn’t use the money we saved on the computers for anything else in the program, and we lost the money we had saved from the donation. That experience really got to me. We were literally refusing services to very sick seniors because we couldn’t transfer the money. It was discouraging. I could just handle so much of the funding frustrations, and I decided I had to leave that organization. I then went to work for another nonprofit organization. This national organization had a very large budget and was active in lobbying. It was easy to be passionate about the organization’s cause. I became the organization’s national training director. In this position, I worked almost every weekend – I spent 40 weekends a year on the road. As my family grew, I decided I was away from home too much in this position, so I left that organization and took my current position. In this position as executive director, a large part of my day is spent telling the story of what this organization does. Our ultimate, bottom-line goal is to raise money. Since we created our Web site, we have dramatically increased our fundraising. We have much more visibility. A young volunteer who is a member of our board designed our Web site. I knew that talking and direct mail were ways to reach people, but the Web is a better way to broadcast our story. We have between 7000 and 12000 hits a month on our Web site; many become donors. We are listed world wide on over 200 search engines. People also find us through Web site links, such as community newspapers. We place emphasis on the Internet to broaden our reach and tell our story. I receive 100 to 150 e-mails a day. Even on my days off, I have to go into the Internet to keep up. I don’t have any personal time. We are trying to hire a development director. This isn’t a mom and pop organization anymore because of the Web. We follow the standard model for a nonprofit. I work with a board of directors and an executive committee. I propose activities 15

to the board of directors and executive committee for their review. I am the media spokesperson and the liaison between the United States branch of this organization and its central office overseas. Since this organization is politically neutral, it can work within the community in a broad way. I represent this organization at various civic and community organizations, such as the chamber of commerce. Every week I do public speaking. The goal is to create awareness, tell the story, and let people make a decision whether to donate. We don’t sell or barter e-mail or names of donors. That helps to build our credibility. I spend time as liaison to all donors. I talk to whomever wants to talk.”

I Am the Director of a Small Organization “We’re a small organization. Our

budget is under $1 million, although this year we will probably go over that. I am the only full-time staff. The organization employs an administrative assistant who works about 28 hours per week and 2 part-time clerical assistants. We also have a board member who volunteers time as our Webmaster, and I work with him daily. Like other small organizations, our limited infrastructure creates some difficulties. We have only been computerized for a short time. Trying to select a database was very difficult; there are hundreds of systems out there and it was very complicated to weed through all the choices. We are transitioning from manual record keeping, with donors names listed on index cards, to a computer list. This will give us more data on donors, however, manual entry into the data base is very slow. Ultimately, we want donors to be able to make contributions using e-mail and credit cards. To be successful in this career, I believe you need something beyond educational training. Real experience pays off far more. It builds your credibility and gets you a name for yourself. You also must be good at building relationships. I am a strong believer in the theory that everything you do is connected. To be effective, you need to be a good networker and understand that if you do something for someone in one area it pays off in other areas later.

16

For example, I try to develop personal relationships with the media, send them news releases, and add key people to our mailing list. Recently, this resulted in a full media story. One time, I did an interview with a journalism student as a favor, to help the student with his school project. Later, when the student had become a reporter for a large metropolitan newspaper, he did a major article on our organization. If you help someone look good, it will help the organization in the long run. There are some drawsbacks to this type of work. You may do good in the world, but you’ve got to be able to pay your bills while you are building your career and paying your dues. It takes a lot of time to reach a point where you can make ends meet. I could be making three times as much working at another job. There has to be something else that drives you. Another drawback is the difficulty in operating an organization on a small budget. Overall, I enjoy my work. It is not a new part of my life. I’ve been doing this type of thing a long time. Even during high school, I worked half time or three-quarters time at community organizations. I’ve always believed that at the end of your days, you should leave the world a better place. It’s got to be something you can personally commit to. This is a life-long passion.”

I Work for a Large, Nonprofit Organization That Provides Financial and Technical Support to Local Human Services and Community Programs “I act as a consultant to these

programs, helping them address their administrative issues. I was raised by my aunt, a school teacher who had a fairly strong public service orientation. There was a feeling that people should be of use in society. I went to college in the late-1960s, at a large university campus where there was a lot of social activism. I was a conscientious objector to the Vietnam War. Conscientious objectors were required to provide alternative public service. For my public service, I worked for two years at a mental hospital. My assignment there was to help residents make the move to a more normal life outside the institution. I helped elderly men and 17

women who had forgotten how to live independently. We set up a program for housing and retrained the residents in how to cook, shop, and come in to get needed medical care. On this project, I worked with other people like myself. We were young and didn’t know the rules. Each of use took a different approach to the task. I got my bachelor’s degree in economics, with a minor in history. I had started out college planning to be an engineer. I changed my mind about engineering because I thought I’d be stuck in an office and I didn’t want to spend all day inside. After graduating from college, I volunteered for five weeks at a legal aid office that provided legal services to people with low incomes. I then went to law school. While I was in law school, I continued to work for legal aid. After graduating from law school, I worked at legal aid, at first under a stipend from the VISTA program and later as a regular full-time employee. I remained at legal aid for about seven years, specializing in social security and welfare litigation, and some consumer matters. One of my favorite memories is when I had a client who paid me with vegetables from her garden. Eventually, I was offered the position of executive director of a national clearinghouse for legal information, which provided legal information to local legal assistance programs. The clearinghouse had been a part of a government program, but at that time it became a freestanding nonprofit organization. I was the first executive director of this organization. I had 15 to 30 employees who reported directly to me. I had to put a management structure in place and tried to instill in the people who worked for me that they should focus first on what the customer needed. Later, we computerized the organization. It was challenging and a lot of fun. We didn’t do a lot of fundraising, we concentrated on providing our services. Some of our funding came from the government and some from products we sold, such as our magazine and legal practice manuals. We made our products available to private lawyers. This helped us build up financial reserves to pay for our computer equipment.

18

After eight years, I went back to school and got my MBA [Master of Business Administration degree]. From there, I went to a small association and later, into consulting. Currently, my job is conducting seminars and training sessions for executives of nonprofit organizations. For example, I teach them how to develop individual giving plans and how to solicit contributions from major contributors. I also teach management training seminars. There is a high turnover in staff at nonprofits. Most people get promoted to a management position within two years. They know their organizations, but they have problems because they don’t have experience being a supervisor. The courses I teach explain the changes in dealing with staff after a promotion. Lots of nonprofits have high turnover in staff, especially organizations dealing with youth, mental health, and childcare. It is not uncommon for as much as half the staff to leave in a year. Salaries tend to be low. Also, people go into these organizations for idealistic reasons, and the reality is not what they expected. Or, they burn out because they invest too much of themselves and don’t leave space or time for themselves. Front-line social work can be very stressful. There are big case loads, unrealistic expectations, and some people get tired of it. Many people who work for nonprofits change jobs. I believe that it is easier to work for a larger organization and later go to a smaller organization and easier to go from a private organization to a nonprofit, than the other way around. My evolution from working directly with clients to direct supervision to consulting management is fairly typical in nonprofit work. If you have a long career, there is a gradual distancing from clients who receive the services. The career track of many nonprofits is more like corporate hierarchy than like a services organization. In nonprofits, in order to earn more money and have more responsibility you have to get into management and have less client contact. Some people leave careers with nonprofit organizations because they miss the client contact, but they can’t afford to stay in lower-level positions. If they need a higher salary but like direct client contact, they go to work for private companies and take referrals from the public sector. 19

Another challenge in nonprofit work is having to make do with facilities and equipment that are not as good as in the private sector. You won’t have the latest computer; instead you may have a slow machine or no machine. You also have to be able to deal with negative responses when you are fundraising. You need to keep in mind that when people don’t contribute they are not turning you down, they are turning down the organization. You can’t take it too personally. Young people thinking about this type of career need to go in with their eyes open. It helps if they can find some place to try out this kind of work to see what it is like. This type of work certainly is not for everyone. Being able to take the long view is important. Things are not going to change overnight. You have to be an optimist.”

I Am the Development Director for a Foundation Affiliated With a Healthcare Facility “I grew up in a family that

volunteered a lot and was very active politically. In high school, I volunteered as a guide at a historic site, volunteered at the local church, and worked as a member of the service organization at my high school. In college, I was active in the school’s ‘student ambassador’ organization, which worked with the university’s development office and provided student speakers for alumni and student events. This is how I discovered that there was a career in fundraising. I graduated with a dual major in English and theater. It seemed to me that this qualified me to go to parties – I was a great dinner guest! But in working for nonprofit organizations and doing fundraising, I found a career where my ability to communicate and get along with a variety of people was important. My first job after college was working in a library research center. I was considering an academic career in English, but my supervisors talked me out of it. In my spare time, I was active with a local theater company. I may have been the world’s worst actor, but I was good in doing public relations for the theater company. I 20

also got involved in representing the theater company in its negotiations for joint projects with other theater groups. It dawned on me that I was doing this on a volunteer basis, while the people across the table from me representing other groups were being paid. I decided to pursue a career in marketing and public relations. I used my contacts through the library and the theater company to look for a job. When a position unexpectedly opened up in the library’s development office, it became my first job fundraising for a nonprofit organization. I started off doing media relations, publicity, special events, and fundraising for the library. I was involved more and more in mass marketing. Direct mailings to potential contributors are the cornerstone of fundraising. The position evolved over time. With nonprofits, you are always fundraising, particularly in grassroots agencies. In a small organization, you get to do a lot and learn a lot. I went on to hold fundraising positions with a variety of nonprofit organizations. Now, I am the director of alumni relations for an academic medical center. I am responsible for fundraising from all the graduates, and I direct public and social events. As a fundraiser, my audience tends to be small, I’m usually making presentations to one to three people. The executive director of the organization usually gives presentations to larger groups. I have a staff of four; we are part of a larger philanthropy and communications department which has a staff of thirty. I love being part of a large group that works hard together to represent an organization. It’s a big change from my previous positions. For example, I had a staff of one at the organization where I worked immediately before coming here. I was responsible for all the fundraising and for working with the organization’s board. As part of my work, I helped identify potential candidates to be board members, oriented new members to the organization, and assisted in communications of the organization to the board. Working for that organization was very exciting, but it was lonely and frustrating to be the only one responsible for fundraising. It was a small community organization without any financial reserves. If I wasn’t successful in raising the money, programs didn’t happen. On the other hand, 21

it was great to be able to see the direct benefit of my fundraising, which made programs possible. In my type of work you are always learning. You have a particular skill that you bring to an organization, but to be an effective representative, you need to understand the organization’s concerns and be passionate about them. You’re constantly in school, learning about your organization. There is the stress of always having to learn something new, but it is also very stimulating. You work with a diverse group of people when you work in nonprofit organizations. Through my jobs with different nonprofit organizations, I’ve had the opportunity to work with urban teachers, scientists, and world class physicians. It has been amazing working with board members, who are well-known business and community leaders. At an early age, I was working among upper level people. If I had been working within a corporation’s hierarchy, I would not have had that opportunity. If I were hiring, I’d like to see someone who had a background in the humanities. Every nonprofit is very individual, each with its own theories or philosophies. Unless you are working at a very large organization, I don’t think that an education specializing in nonprofits helps much when you begin your work for a particular organization. In nonprofit organizations, you need people who can think, can listen, and can communicate, so a broader education is more helpful. My advice to anyone considering this career is that they should volunteer. You’ll really get a sense of what this type of work is like and who your colleagues will be. You’ll find out if you have the passion to do this, and you’ll need that passion because it’s a lot of work.”

22

PERSONAL QUALIFICATIONS NO MATTER WHAT YOUR JOB TITLE IS, YOU WILL NEED GOOD PEOPLE SKILLS IF YOU

work for a nonprofit organization. You must enjoy working with the public and have a friendly, outgoing personality. You will meet all types of people while representing your organization, including volunteers, donors, board members, community leaders, and the press. You must be able to build a rapport with these people and develop their support for the organization’s activities. You also will need good communication skills. You need to be articulate and be able to present information in a way that is easy to understand. Good writing skills are very important. As a member of a nonprofit’s staff, you will be expected to write communications materials such as newsletters, articles, news releases, letters, brochures, speeches, regulatory comments, and educational materials. Your writing must clearly present the concerns of the organization and why they are important. Good communication skills also are very important. While working for a nonprofit, you will probably be called upon to make presentations and give speeches. You also may be called upon to give oral testimony at public hearings. You must be able to communicate in a clear, succinct way with donors and government officials. Leadership skills also are important while working for a nonprofit organization. Nonprofit work requires vision and the ability to bring people together. You must be able to generate enthusiasm for the organization’s causes. You must be sincerely committed to the organization’s mission. Management skills are another characteristic that you’ll need to be successful and help a nonprofit organization run effectively. You must be skillful in managing finances and accounting. You must be able to manage people and bring them together in a joint effort. You also must be organized. Staff at nonprofits must be able to juggle multiple activities simultaneously. You must be able to develop short-term and long-term goals if the nonprofit is to run smoothly. You will need creativity to make the most out of limited resources. You will need to be resourceful in finding new funding sources. You will need negotiation skills in order to make the most cost-effective arrangements.

23

ATTRACTIVE FEATURES MOST PEOPLE WHO GO TO WORK FOR NONPROFIT ORGANIZATIONS ARE PASSIONATE

about their work. This is one of the most attractive features of this type of career – earning a living doing what is important to you. It allows you to combine your interests and professional skills. Working for a nonprofit can be personally satisfying. A career with nonprofit organizations gives you the opportunity to do good works that improve the quality of life in the community. Your work may allow you to directly or indirectly help people. Your work may help people with life-threatening diseases or fund research. Working for a nonprofit gives you the opportunity to focus on something other than profitability. It is important and valuable work. Another attractive feature of this career is that it gives you the opportunity to help form public policy. An important part of your job will be making the community and government officials aware of important issues. When you successfully advocate your organization’s positions, you are helping to shape the future. You will meet all types of interesting people while working for a nonprofit. Because of your work with the organization’s board and government officials, you will have the opportunity to meet important leaders in the community. You also will build relationships with individuals who benefit from your organization’s charitable work. What’s more, you will work with people who share your interest in particular issues. Finally, working for a nonprofit is not a typical 9 to 5 job. You will not be tied to your desk. Nonprofit work requires you to reach out to the community, regardless of whether the community is local or national. Your organization also may need you to staff events outside usual work hours. This means that the organization may offer its employees a flexible work schedule.

24

UNATTRACTIVE FEATURES IF YOU WORK FOR A NONPROFIT ORGANIZATION, YOU CAN EXPECT TO HAVE A

lower salary than you would have doing the same job at a for-profit. Nonprofits depend on contributions to accomplish their goals. They direct as much of their funding as possible toward meeting those goals, not administrative costs. The difference in salaries between the for-profit and nonprofit sectors is especially noticeable if you work for a small nonprofit, and most nonprofits are small organizations. Benefits such as insurance coverage and retirement plans also may be less generous if you work for a small organization. Because nonprofits dedicate minimal amounts to administration, you probably will work in an office with less support staff than you would see in a for-profit enterprise. Your support staff may consist of part-time or volunteer workers. In addition, the office equipment probably will be less up-to-date. Your office may have an older, slower computer system – or no computer system at all. The budget for travel and continuing education may be bare bones. There is constant pressure to raise funds to carry out the organization’s mission. There will be a constant stream of fundraising activities that must be repeated every year. New donors need to be found to replace people who no longer contribute. New projects require additional contributions. If your organization does not maintain a financial reserve from year-to-year, programs may not happen if you do not meet your fundraising goal. Many people who run nonprofit organizations work long or irregular hours. They attend dinner meetings with community leaders and make speeches to civic groups after business hours. They run fundraising events that take place in the evening or on weekends. They may need to work additional hours in the office because of the shortage of support staff. When you work for a nonprofit, there may be no satisfying end point to your work; the goals seem elusive or unachievable. The issues that nonprofits address tend to be chronic problems. You may work for years on a concern and never see it successfully resolved. Many of the people you are trying to help may have heartbreaking life stories. Government agencies – in this country and in foreign countries where your organization operates – may vary in their support, depending on who won the last election (or abroad, who takes power in an administration). You may sometimes feel that all the progress you have made is undercut by powers beyond your control. 25

EDUCATION & TRAINING MOST PEOPLE WHO WORK IN OTHER POSITIONS AT NONPROFITS HAVE AT LEAST SOME

college education. Executive directors of nonprofit organizations usually have at least a bachelor’s degree. Graduate and professional degrees are common in some management positions.

Many types of courses are helpful in preparing you for this type of career. No particular degree is best if you plan on working for a nonprofit organization. College-level courses in marketing, public relations, computer science, business administration, education, political science, government relations, accounting, finance, and journalism all may be helpful. In addition, course work or a degree in psychology, social work, or sociology may be beneficial. Some colleges and universities offer courses geared toward working for charities or philanthropic organizations. These courses may address fundraising, issue management, or nonprofit administration. Communications is a large part of this career. You will need strong writing skills in this career, so take as many English classes as possible. Speech classes will help you develop better communication skills. You also should take courses that give you a background in layout, design, and print production. You may want to select a major that emphasizes the skills you most want to use while working for a nonprofit. For example, if you plan on a career that emphasizes lobbying and advocacy, you may want to obtain a degree in political science or law. If you are interested in fundraising, you may want to major in marketing, communications, or public relations. If you are interested in working for an international organization, you should learn to speak a second language. The ability to speak a second language also will be helpful if you work with ethnic groups in this country, for whom English is their second language. Depending on your particular job within an organization, there may be opportunities for continuing education and certification. Individuals in management positions at nonprofits may attend leadership seminars and training courses. Some senior managers go on to earn master’s degrees in business administration (MBAs).

26

Professional Certification Certification programs signify

professional competence in a particular area and can lead to career advancement. There are many types of certification programs in this field. Certified Meeting Professional designation is awarded on the basis of experience and an exam in the meeting planning field. The Professional Relations Society of America accredits public relations professionals who have passed a comprehensive examination. The Association of Fundraising Professionals offers a Certified Fund Raising Executive (CFRE) program and an Advanced Certified Fund Raising Executive (ACFRE) program. These credentials verify experience and knowledge of fundraising. The Association for Healthcare Philanthropy offers a fellowship program. The American Society of Association Executives offers a certification program, where administrators can earn a Certified Association Executive (CAE) designation.

EARNINGS EARNINGS IN A NONPROFIT CHARITABLE ORGANIZATION USUALLY ARE LOWER THAN

for similar positions with a for-profit business. However, many of the factors that affect salaries in the private sector also affect salaries earned by nonprofit staff. For example, your compensation generally will increase with the number of people you manage and your supervisory responsibilities. Your salary will depend on the size of the organization and its budget. Salaries with very small organizations may be minimal. A few, large national organizations may offer salaries that rival those offered in the business world. The head of a nonprofit organization with a budget of $50 million or more will make an average salary of about $175,000. Top executives at foundations on average earn about $100,000. But organizations with budgets below $1 million pay their top employees an average of about $60,000. It is not unusual for executives at small nonprofits to earn even less. The median income for all nonprofit CEOs is $75,000. Your salary also will depend on your job position within the organization and your career experience. Volunteer directors earn an 27

average of only about $35,000 a year. However, if an organization is large enough to hire a chief financial officer, it pays that person on average $60,000, with salaries reaching $75,000. Because effective fundraising staff is critical to nonprofit organizations, experienced fundraisers earn relatively high salaries. While beginning fundraising staff may start their careers earning about $25,000, experienced development directors on average make over $60,000. Individuals who work for nonprofit organizations in major metropolitan areas also have higher salaries. If you work near one of the main locations for nonprofits, such as Washington, Chicago, or New York City, competition for experienced staff generally results in higher salaries.

OPPORTUNITIES FOR YOUR FUTURE THE NONPROFITS CONTINUE TO BE PROMINENT IN PUBLIC POLICY AND SOCIAL ACTION.

During the late 20th century, government recognized that it could not meet all the needs of communities, and began to look for ways for nonprofit organizations to expand their roles. This will help ensure a vibrant future for nonprofits. There are plenty of job opportunities for anyone considering a career with nonprofit organizations. Americans strongly believe in the power of coming together and sharing time, talent, and money to improve society. Currently, there are about 700,000 nonprofit charitable and philanthropic organizations in the United States, making this segment of the economy the 10th largest industry in the United States. More nonprofits are formed every day, further increasing career opportunities. About six percent of all organizations are nonprofits, and one in 15 Americans works for a nonprofit organization. Demand for workers in the nonprofit sector was high during the late-1990s, in part because of the healthy economy. Even in a less robust economy, however, job opportunities should be available because of the ongoing need for the services the nonprofits provide. There is a relatively high turnover rate in staff at nonprofits. This means that new job opportunities frequently open up. It also means that there are opportunities for promotion within nonprofit organizations. Most individuals with this type of career find that their opportunities expand as they gain experience.

28

Demand in nonprofit organizations is greatest for fundraisers. Fundraisers who work for large organizations have opportunities for promotion based on their track records. After gaining experience with several nonprofit agencies, some fundraisers go into business for themselves and work for nonprofits on a consulting basis. In addition to consultants, nonprofits sometimes hire individuals to work part time during special fundraising campaigns. Organizations also are offering competitive salaries to attract individuals with backgrounds in management and public relations. These careers are among the fastest growing in the business sector of the economy, so nonprofits must offer competitive compensation in order to attract qualified individuals.

GETTING STARTED MOST PEOPLE PROGRESSIVELY WORK THEIR WAY UP IN NONPROFIT ORGANIZATIONS.

The good news is you don’t have to wait to begin building a career in nonprofit organizations. Organizations value employees with experience, even if the experience was obtained through unpaid, volunteer positions. You can volunteer now to help local churches, social agencies, health charities, schools, and other groups. They always welcome enthusiastic supporters. Although charitable groups may be most interested in assistance with their fundraising activities, you should try volunteering in a variety of positions. This will broaden your experience and marketable skills. It also will help you identify which aspect of nonprofit work you enjoy most. You can continue to build your career skills while in college by working with the school’s alumni association or foundation. With these organizations, you will learn traditional fundraising techniques to reach potential donors. You also will benefit by increasing your contacts within the nonprofit sector. You can further expand your contacts while in college by interning in an organization. Your career counselor will be able to help you find internship opportunities.

29

ASSOCIATIONS n

Action Without Borders www.idealist.org

n

Alliance for Nonprofit Management www.allianceonline.org

n

American Association of Fundraising Counsel www.aafrc.org

n

American Management Association www.amanet.org

n

American Society of Association Executives www.asaenet.org

n

Association of Fundraising Professionals www.nsfre.org

n

Association for Healthcare Philanthropy www.go-ahp.org

n

Association for Research on Nonprofit Organizations and Voluntary Action www.arnova.org

n

Council on Foundations www.cof.org

n

Internet Nonprofit Center www.nonprofits.org

n

Meeting Professionals International www.mpiweb.org

n

National Assembly of Voluntary Health and Social Welfare Organizations www.nassembly.org 30

n

National Center for Nonprofit Boards www.ncnb.org

n

National Council for Nonprofit Associations www.ncna.org

n

National Health Council www.nhcouncil.org

n

Nonprofit Resource Center www.not-for-profit.org

n

Public Relations Society of America www.prsa.org

PERIODICALS n

Chronicle of Philanthropy www.philanthropy .com

n

The Nonprofit Times www.nptimes.com

COPYRIGHT 2005 Institute For Career Research CHICAGO

31