March 12, 2009
By: The NonProfit Times
A 39-year-old fashion industry executive lost his job and explained his situation to Matthew Hale, chair of the Department of Public and Healthcare Administration at Seton Hall University.
"He rattled off how much money they made, and now apparently don't, and he said 'I'm looking to make a change. I'm looking to make a move. I'm interested in doing something maybe a little bit more meaningful,'" said Hale.
This isn’t the first time he has received a call from a for-profit executive since the economy flew south for the winter - and probably the spring, summer and fall. Hale said since the downturn, he's had more inquiries regarding the South Orange, N.J., university's Nonprofit Organization Management concentration within the Master of Public Administration degree.
Colleges and universities across the country seem to be fielding more questions about nonprofit education programs as businesses report bleak sales numbers and layoffs are mounting.
The economic crunch might help bring much needed talent into the nonprofit leadership ranks. Organizations will need an estimated 640,000 senior managers during the next decade, according to a 2006 study by The Bridgespan Group. Even with sector consolidation, people working longer and conservative turnover rates, the survey expects at least 330,000 new managers will be needed to fill in leadership gaps.
Key positions, like chief financial officers, chief operating officers and other functional management roles, are in high demand for nonprofits, according to Bridgespan partner and Bridgestar head David Simms. He explained that the gap cannot be filled just by people coming back to the workforce or delaying retirement to rebuild 401(k)s. With unemployment hovering at 7.6 percent in January, top nonprofit positions might be filled with what Simms calls "bridgers" -- people who are transitioning from for-profits to nonprofits.
And while there are key jobs open, those already in the sector are going to be feeling the competition for those jobs.
"There seems to be an inverse relationship, if you will, somewhat to the economy. Our enrollment doesn't go down as the economy goes down," said Ronald Nyhan, associate professor in the School of Public Administration at Florida Atlantic University (FAU). Nyhan estimated he received 10 to 15 percent more inquiries regarding the school’s Master of Nonprofit Management program than the same time last year.
He explained that a majority of the inquiries are from people who want to switch to the nonprofit sector. He also hears from nonprofit workers who want to be more competitive in the field and take a few courses without enrolling in the master's program.
"I would say the conventional wisdom is correct that in a down economy university enrollment goes up," said Michael Bisesi, director of the Center for Nonprofit and Social Enterprise Management at Seattle University. Bisesi said he expects an increase in applications for the university's executive master's degree nonprofit leadership program if inquiries are any indicator. The university admits 17 to 27 people a year to the 16-month program and Bisesi has seen a growing interest via open houses, telephone calls and information sessions.
Simms explained that nonprofits don't just want top business talent. They are also looking for candidates who understand how nonprofits work. "They want to see that people have some kind of value geared toward giving back and improving society that allows them to feel like this person actually has a solid reason, beyond needing to pay the mortgage, for why they are there interviewing for that nonprofit," he said.
Knowing the distinctions between for-profits and nonprofits could make or break job candidates. Simms said that the "lack of understanding of the differences can frequently be a knockout punch that keeps them from being hired for the job." Nonprofit backgrounds, like volunteering or sitting on a board, and team player skills could help candidates land a nonprofit job. Taking nonprofit management courses is just another way to add an extra punch to a resumé.
Hale explained that some of those interested in Seton Hall's nonprofit program seem to be people in their late 40s or early 50s who aren't ready for retirement, but aren't excited about jumping back in the for-profit sector after losing their jobs. "For reasons they don't fully understand, it just disappeared," said Hale. He explained that many people in that situation are rethinking what is important to their lives -- leading them to nonprofit work. Bisesi said that nonprofit programs can help those migrating from the business sector understand how nonprofits work, from volunteer structures to strategic fundraising. That context can shape what is feasible in a nonprofit organization.
"There are some things that are unrealistic that will never happen. When you have someone say 'we need to manage nonprofits more like a business.' You say, 'which ones? Enron? Or any of the fabulously successful banks we’ve observed recently?,'" said Bisesi.
"I think it's important that during an interview you are able to speak the same vocabulary," said FAU Nyhan. "The financial terms are the same for the most part, but understanding how nonprofits operate is enormously helpful for those people looking for jobs."
Bisesi explained that highlighting nonprofit experience on a resumé or interview could help job candidates trying to shimmy up the pipeline. "I think it's unlikely that somebody would come out of the private sector and become the chief development officer of a nonprofit," he said. For-profit job candidates might have experience with a Fortune 500 company and can be clueless in courting major donors. Job candidates already in the nonprofit field have to break down their experience in concrete results, like how they stayed within budget or increased a direct mail campaign's response rate.
"The stakes are really high right now, higher than they've ever been in years, and I think most nonprofits saying, 'all things being equal, I need someone who knows how to run a capital campaign,'" said Bisesi. Nyhan said grant writing and development courses continue to be the most popular at FAU. Nyhan estimates that FAU's nonprofit program currently stands at 50 percent capacity, ready to accommodate the demand if inquiries materialize into applicants.
"We still have the capacity to grow and despite the uptick in inquiries feel we can easily meet the demand in the coming years," Hale said about Seton Hall's program and the university still has scholarship opens for top students. "At some point the demand might get to a point where that is not the case, but right now we are ready and able to grow."
Naomi Levine, chair and executive director of the George H. Heyman, Jr. Center for Philanthropy and Fundraising at New York University, explained that experience and education in fundraising would become more critical in the upcoming year for nonprofits to weather the financial fallout.
"In times of economic crisis, I always tell the nonprofit people that I speak to, 'don't fire your development people because now, more than ever, you need them.' And, if possible, hire more because you are going to need more help in getting people to get out and get you money," she said.
Simms said having gifted leaders could help nonprofits navigate though the economic storm. Once the economy improves and baby boomers retire, Simms expects "the war for talent will be back in full force and stronger than it's been here before. So nonprofits have to really need to be able to make the case why their organization is doing great work and warrants great leaders being a part of that."