From Non-Profit to For Profit and Back AgainPresentation Transcript
From Non-Profits to For-Profits and Back Again Ken Toren Nova Connect November 10, 2009
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
CEO/co-founder of 5 software start-ups
Raised $20m from VCs, investors
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
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
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”
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
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
Marketing = very, very, very needed (but do NPs do it?)
Finances = same
Technology !!! – many NPs are in process; grant $$ available (CARE, etc)
Internet Strategies/Tactics – social networking, blogs, etc
needed by all
Product/Program Marketing and management/CS = Program and Service Delivery
The last 10 years have seen explosive growth in online giving. In 1999, just $200 million was donated online, but by 2007 that number had reached $10.44 billion in the United States alone – a growth of 5200%
Globally, this number is estimated at over $20 billion, but represents just 3.4% of all giving; most money is still donated offline
The millions of online donors may represent a high number of people giving money today, but does not yet account for a significant proportion going to social causes
Blogs, social networks, media, ads, etc
Blend of technology, NP, FP, meeting needs
The Business of Online Giving
2008 (2000 respondents) to a national study…
2008 was terrible…but…total online fundraising giving was up 26% over 2007
Total number of online donations was up 43% in 2008
December and June were the two largest months for online giving
December accounted for 48% of the total dollars raised
Online giving in Dec 2008 quadrupled in size compared to prior months
Average online gift for the month of December of $248.82
Average online gift of $152.12 in 2008
Education, healthcare, faith-based, and foundations were highest
Moving into 2009, the nonprofits that concentrate their efforts on their existing donor base and leverage integrated marketing efforts will do better job raising $$
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.
I can't understand why people are frightened of new ideas.
I'm frightened of the old ones.
“ 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.
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.