From Non-Profit to For Profit and Back Again
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From Non-Profit to For Profit and Back Again

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From Non-Profit to For Profit and Back Again From Non-Profit to For Profit and Back Again Presentation Transcript

  • From Non-Profits to For-Profits and Back Again Ken Toren Nova Connect November 10, 2009
  • Agenda
    • Thinking about or interested in transitioning from the FP world to NP world (or vice versa)
    • Real experiences – from me and you
    • Opportunities to consider
    • Identify ways to re-brand yourself
    • Tips for success
  • About Me
    • Serial Entrepreneur
    • CEO/co-founder of 5 software start-ups
    • Raised $20m from VCs, investors
    • M&A
    • 20+ years in marketing, sales, BD for publics, privates and non-profits
    • High-tech, healthcare, consulting
    • Raised $200m for non-profits
    • Business advisor, Board Member
  • My Story
    • NP for 16 years…then to FP = computer telephony integration company as Dir of Marketing!?
    • Made transition to FP by emphasizing related experience: promotion of consumer services, press relations, marcom, events, writing, new service roll-outs
    • Understanding of technology and business language (channels, MRD, specs, etc) were barriers
    • Then went from fund raising to fund raising – a great skill
    • Easier to go “back and forth” based on opportunities – as staff, volunteer, consultant = flexibility and opportunistic!
    • Still some “discrimination”…but…not so much now
  • Is Non-Profit Right for You?
    • Why do you want to do this anyway?
    • Are you motivated by the desire to fulfill a lifetime passion, or to make a difference?
    • Which aspects of the non-profit sector are you passionate about and/or most interested in?
      • Are you interested in arts and culture, the environment, or international development…
  • NP = Qualities That Count
    • Adapt to the culture of non-profits
    • Ability to align resources against an organization’s mission to achieve results
    • Bottom line orientation–how to serve clients in the most cost effective manner possible
    • There’s a huge need for communication and consensus-building skills
    • Employee empowerment factors are key to success
    • Command-and-control won’t work
  • Your Non-Profit Resume
    • NP focus - their mission as opposed to profits
    • Flexibility, concern for others, dealing with change, analytical and leadership
    • Recruiters want to see: ability to relate to different constituent groups, solve problems, empathy for others, openness to change, passion
    • Highlight non-profit experiences prominently on your résumé – section called “Community Leadership” or Volunteer Experience
    • Use language that is appropriate to the non-profit sector
      • If your experience is in high-tech sales and you are seeking a fundraising or development role, focus on your interpersonal and people skills that made you successful in sales (nurturing relationships, communications and presentation skills, proposal writing, etc.)
      • Avoid business jargon and industry slang
    • Focus on who you are as an individual and less on what you have done - humanity
  • Peanuts?
    • Don’t assume that all NPs pay peanuts
    • People don’t work at non-profits to become rich, but even the salaries paid mid-level managers at certain non-profits may allow you to live comfortably
    • Likewise, fundraising or development positions may also pay more than other non-profit jobs, as the ability to raise funds is prized by all
    • The Chronicle of Philanthropy reported in 9/09 that…
      • the median compensation for chief executives at the nation's biggest nonprofit organizations climbed 7% to $361,538
      • 2/3 of nonprofits maintained or increased compensations for top execs
      • Nonprofit CEOs didn't feel the economic pinch in 2008 despite charitable giving having declined for the first time since 1987.
      • Nonprofit hospitals have the highest median CEO - $830,000+
      • Many have come from “industry”
  • Very High
  • Second Life
    • Non-profits growing faster than business or government sector–and facing a shortage of talent.
      • Sector will need to hire 640,000 new senior managers by 2016, according to Bridgespan Group
    • Best of all, the non-profit sector is gradually waking up to the potential of encore career switchers–people who want to move into new lines of work with meaning in the second half of life.
    • The MetLife Foundation and Civic Ventures reported in June that a big shift is already is underway:
      • About 8.4 million people between 44-70 are doing work that combines income and personal meaning with social impact and 50% of them not already in “encore careers” will do so
      • Non-profits are worried about finding top talent as they grow; 42% see recruiting and hiring as #1
      • 40%, seem to like candidates who’ve switched to non-profits from the business world
      • Nearly 70% say encore workers bring valuable experience to non-profits
    • NP = looming leadership deficit
      • older boomers leaving to retire or simply to do something new - so there will +++ positions to fill
  • Some NP Minuses
    • Mission, not profit, is the driving force – not for everyone
    • Quarterly focus on revenues and profits, which characterize the business sector, doesn’t necessarily define success
    • If you continually succeeded based on profit margin, there would need to be an adjustment as to how to measure success
    • Non-profits are typically resource constrained - impact on management’s ability to implement change as well as increase compensation
    • With fewer income sources, and no margin of profitability, the trickle-down effect on your pay might not be as frequent nor be as lucrative
    • NO EQUITY, PROFIT SHARING, STOCK!!!
    • Very process oriented and consensus driven, both of which can slow decision making - frustrating if you are used to well-defined structure
  • Some NP Pluses
    • Opportunity to interact with government, corporate, and community
    • Nonprofits offer flexible working conditions/environment
      • leaps and bounds ahead of corporate America - flexible scheduling, job sharing, telecommuting, leaves of absence, and health benefits
      • NPs attract bright individuals who are passionate and committed to their cause
        • wish to make a difference in the world
        • believe in the direction of their organization
        • have a lifelong passion for the group’s work
  • Be Aware…
    • Barrier - unwillingness of many nonprofits to take a chance with a for-profit person.
    • Nonprofits know that there is a different culture in their organizations than in FPs
    • Some people in FPs may assume that they can come in and quickly make changes - alienating staff, donors, board members and bosses.
    • And you know, sometimes there's a certain arrogance that comes from the for-profit sector.
    •  
  • But, NPs changing…
    • Business = profits, ROI, stock
    • NPs = break even, but profits can be made and applied to program/services
    • Bonuses, MBOs, etc exist
    • Basic functions the same – financial, operations, etc
    • Personnel (Board and Committees) and Governance
    • Language is getting more common: competition, market share, value prop, business plan (big one!), scalability, global footprint, go-to-marketing, validation, etc
    • Many “mission” based businesses today – do good and make money too! = Venture Philanthropy/Social Ventures
  • Hot Areas
    • Healthcare – Hospitals, senior services, disease (cancer, neurology, etc) - $$$$
    • At Risk Youth
    • Community Foundations - $$$
    • Private Foundations - $$$$
    • Academic – community colleges
    • Environment – Clean and Green
  • NP Resources/Ideas
    • Craigslist – of course
    • LinkedIn – of course
    • PND.org/Foundation Center
    • Philanthropy. Com – Chronicle of Philanthropy
    • Bridgestar
    • Idealist
    • Friends serving on boards of non-profits can be a great networking tool
    • Think about your alumni association or your university’s career resources.
    • Only 10% of non-profit openings are posted on any of the online job boards
    • Most non-profit hiring is local; most employers are too small to have funds available to pay for relocation = makes local P2P networking most important job-hunting tool
    • More than 230 colleges and universities across the United States offer courses in non-profit management , up from 179 not long ago
  • Volunteer!
    • It’s a good thing to do…period
    • Keeps you sharp, on target, networked
    • Serve on Boards, etc in areas that are transferable
      • you can learn the business from the inside out
      • allows you to build repertoire of NP accomplishments
      • broadens your network of non-profit colleagues and peers, increases your chances of getting a job in sector
    • From Volunteer to Pro (and vice versa) is common
  • Is For Profit Right For You?
    • Why do you want to do this anyway?
    • Looking for faster pace, cutting edge, etc?
    • Which aspects of the FP sector are you passionate about and/or most interested in?
      • Products, services, varied/specific customer base, etc,
    • Is compensation, profits a driving force?
    • Do you like the bottom-line focus?
    • Are you more product or “thing” based?
    • Does mission matter?
  • NP to FP
    • Less barriers now
    • Emphasize accomplishments – financial, “sales” (clients served, etc), satisfaction, marketing success
    • Now use business language
    • Mission-based businesses – best of both worlds
  • Transferable Skills Both Ways
    • “ Sales” = fund raising!
    • Marketing = very, very, very needed (but do NPs do it?)
    • Finances = same
    • Technology !!! – many NPs are in process; grant $$ available (CARE, etc)
    • Internet Strategies/Tactics – social networking, blogs, etc
      • needed by all
    • Product/Program Marketing and management/CS = Program and Service Delivery
  • New Opportunity!
    • The last 10 years have seen explosive growth in online giving. In 1999, just $200 million was donated online, but by 2007 that number had reached $10.44 billion in the United States alone – a growth of 5200%
    • Globally, this number is estimated at over $20 billion, but represents just 3.4% of all giving; most money is still donated offline
    • The millions of online donors may represent a high number of people giving money today, but does not yet account for a significant proportion going to social causes
    • Blogs, social networks, media, ads, etc
    • Blend of technology, NP, FP, meeting needs
  • The Business of Online Giving
    • 2008 (2000 respondents) to a national study…
    • 2008 was terrible…but…total online fundraising giving was up 26% over 2007
    • Total number of online donations was up 43% in 2008
    • December and June were the two largest months for online giving
    • December accounted for 48% of the total dollars raised
    • Online giving in Dec 2008 quadrupled in size compared to prior months
    • Average online gift for the month of December of $248.82
    • Average online gift of $152.12 in 2008
    • Education, healthcare, faith-based, and foundations were highest
    • Moving into 2009, the nonprofits that concentrate their efforts on their existing donor base and leverage integrated marketing efforts will do better job raising $$
  • Obama 2.0
    • Barack Obama raised $500M+ online in his 21-month campaign, dramatically ushering in a new digital era in presidential fundraising.
    • 3 million donors made a total of 6.5 million donations online adding up to more than $500M. Of the 6.5m, 6m were in increments of $100 or less. The average online donation was $80, and average Obama donor gave more than once.
    • More…
  • Think Different
    • I can't understand why people are frightened of new ideas.
    • I'm frightened of the old ones.
  • Unwritten Rules
    • “ Swanson’s Unwritten Rules of Management” - William Swanson, CEO of Raytheon:
    • Look for what is missing; few can see what isn’t there.
    • We remember 1/3 of what we read,1/2 what people tell us, and 100% of what we feel.
    • When in charge, be in charge.
    • If you are not criticized, you may not be doing much.
    • Be a good starter and a better finisher.
    • Tell a great Elevator Pitch.
    • Have fun.
    • Face fear, try something new – an amateur built the ark; pros built the titanic.
  • Now, go for it
    • You are not a cog.
    • You're creative and a valuable asset to your family and your community. A person who can make a difference to an organization.
    • You are capable of having an impact, leaving a legacy, creating things that are outstanding.
    • You are not ordinary.
    • In fact, you're remarkable.
    • Now, hurry. Don't let yourself (and the rest of us) down.
  • It’s only the beginning…
    • You miss 100% of the shots you never take.
    • Any questions?