2008 Woodie Awards
Alumni Column - The Nonprofit Sector: Opportunity Awaits
Sandi Drucker Wright '96
Issue date: 11/15/07 Section: Commentary
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The nonprofit sector of America has enjoyed tremendous growth over the past three decades as a result of a handful of factors. Chief among them is the vast amount of wealth generated in the private sector. This, in turn, has resulted in increased corporate and individual donations. And the giving of private funds for public good - known as philanthropy - is likely to become even more pronounced in the future.
Another reason for this growth is that the governmental sector is asking nonprofits to play a larger role in the delivery of services. Government agencies are increasingly providing funding and grants to organizations which, in turn, provide assistance with programs that help the public.
And finally, there is the managerial transformation in which nonprofit organizations apply business tools and talent to their enterprises. There was a time when some nonprofits scoffed at the idea of implementing traditional business practices; the for-profit and not-for-profit sectors were viewed as having little in common. However, business practices and business training today are playing a critical role in achieving social missions by the most effective and efficient means possible.
There is another trend in the nonprofit arena. It has been the subject of many recent surveys and reports. It has been called the greatest challenge facing nonprofits over the next decade. To many it is, indeed, a crisis.
Last year, Thomas J. Tierney of the Bridgespan Group published a startling report entitled "The Nonprofit Sector's Leadership Deficit." It has sparked a flurry of public debate especially with regard to where the next generation of leaders would come from.
The report examined nonprofits with revenues greater than $250,000, (with the exception of hospitals and higher educational institutions). Most alarming is that over the next ten years the nonprofit sector will need to attract or develop approximately 640,000 new senior managers.
Tierney's report cites a number of reasons for this: not enough talent entering the sector; the growth in the number of nonprofit organizations; anticipated retirement; the transition of current managers into different positions within or outside of the industry; and the expansion of nonprofit organizations themselves.
Another reason for this growth is that the governmental sector is asking nonprofits to play a larger role in the delivery of services. Government agencies are increasingly providing funding and grants to organizations which, in turn, provide assistance with programs that help the public.
And finally, there is the managerial transformation in which nonprofit organizations apply business tools and talent to their enterprises. There was a time when some nonprofits scoffed at the idea of implementing traditional business practices; the for-profit and not-for-profit sectors were viewed as having little in common. However, business practices and business training today are playing a critical role in achieving social missions by the most effective and efficient means possible.
There is another trend in the nonprofit arena. It has been the subject of many recent surveys and reports. It has been called the greatest challenge facing nonprofits over the next decade. To many it is, indeed, a crisis.
Last year, Thomas J. Tierney of the Bridgespan Group published a startling report entitled "The Nonprofit Sector's Leadership Deficit." It has sparked a flurry of public debate especially with regard to where the next generation of leaders would come from.
The report examined nonprofits with revenues greater than $250,000, (with the exception of hospitals and higher educational institutions). Most alarming is that over the next ten years the nonprofit sector will need to attract or develop approximately 640,000 new senior managers.
Tierney's report cites a number of reasons for this: not enough talent entering the sector; the growth in the number of nonprofit organizations; anticipated retirement; the transition of current managers into different positions within or outside of the industry; and the expansion of nonprofit organizations themselves.
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