NFP employee benefits: what to expect when shifting from commercial to not for profit

Shifting from a senior commercial role to a position in the not for profit (NFP) sector is a move often motivated by a desire for purpose over profit. Many professionals consider this change after years of operating in a high-pressure, shareholder-driven environment.

While the transition offers new fulfillment and meaning, it’s not without its challenges. In this article, we unpack the pros and cons of moving into an NFP leadership role, highlighting the key employee benefits, but also the practical realities to keep in mind.

What is a not for profit organisation?

Not-for-profits are organisations that reinvest any surplus revenue back into their mission rather than distributing profits to shareholders. These include charities, foundations, community health providers, and aged care or disability service organisations. The focus is social impact, not profit margins, meaning the workplace culture, priorities, and expectations can differ significantly from the commercial sector.

Why do NFP employee benefits matter in this decision?

Employee benefits in the NFP sector often differ in structure and emphasis from commercial organisations. While financial compensation may be lower, many find the non-monetary rewards—such as meaningful work, flexibility, and inclusive culture, far outweigh the trade-offs. For leaders used to KPIs and returns, understanding these sector-specific benefits is critical to making an informed transition.

Pros of working in the NFP sector

1. Purpose-led work

   Many professionals describe their NFP roles as deeply meaningful. Whether you're supporting marginalised groups or contributing to health and social equity, the work often aligns closely with personal values and a sense of giving back.

   
   

   One of the most significant and reasons for moving into the NFP sector is the opportunity to work for a cause you are passionate about. Many executives find renewed motivation and satisfaction in knowing their efforts contribute to social good, whether it’s supporting disadvantaged communities, environmental conservation, or health advocacy.

   
   

2. Expanded skill development

   NFPs operate with leaner teams, requiring executives to work across functions. You may find yourself involved in advocacy, fundraising, service delivery, or stakeholder engagement, developing a broader skillset than in siloed commercial roles. These experiences can make you a more versatile and well-rounded professional.

   
   

3. Strong professional community

   Working in the NFP sector can connect you with a network of like-minded individuals who are equally passionate about making a difference. This strong sense of community and shared purpose can lead to meaningful professional and personal relationships.

   
   

   This extends to executives working for what in the commercial sector would be viewed as competitors. A cooperative approach to helping other organisations improve is taken very seriously by larger not for profits in particular who will often see as part of their mission the need to support other providers of similar services with the shared goal of making a greater social impact.

   
   

4. New leadership opportunities

   The NFP sector is forever evolving and a strong trend currently in the sector is to implement more commercial operational approaches. There are numerous drivers for this from NFP Boards being increasingly populated by commercial Board members to the lean operational necessities in the more fee for service sectors such as disability or aged care.

   
   

   This trend is creating more opportunities for commercial leaders to enter the not for profit sector where traditionally a much greater emphasis might have been placed on the desire for a background steeped in the service focus of the business. This is creating opportunities for commercial executives to bring experience that can be invaluable in these settings, in turn facilitating significant career advancement.

   
   

5. Focus on employee wellbeing

   Many NFPs prioritise mental health, work-life balance, and supportive leadership. While this isn’t universal, the cultural shift toward wellbeing is strong, especially in social care-focused organisations.

   
   

6. Long-term legacy and impact

   Contributions in NFP leadership roles often have lasting social impact. Whether you’re reforming organisational structure, leading service transformation, or mentoring the next generation of leaders, your work builds legacy.

Challenges to be aware of

1. Lower financial compensation

   One of the most notable disadvantages is the potential for lower salaries. NFP organisations typically operate with tighter budgets and an inability to easily raise more revenue which usually results in an inability to match the high compensation packages of the commercial sector. This can be a significant deterrent, especially if financial considerations are a top priority.

   
   

2. Resource and staffing constraints

   Lean operations mean less access to support staff, tools, or systems. Executives may be required to take on hands-on tasks that would be delegated in the commercial world.

   
   

3. Complex stakeholder management

   Navigating the expectations of donors, government funders, communities, and boards can be intricate. Strategic alignment takes time and diplomacy.

   
   

4. Risk of burnout

   The emotionally taxing nature of NFP work can lead to burnout. The passion and commitment required to drive a social cause can sometimes lead to overworking, especially when dealing with critical issues like poverty, health crises, or environmental disasters. Additionally, self-care is seen as a vital element in not for profit work due to the often emotionally taxing reality of working with people experiencing incredibly difficult personal and societal challenges. Read our article on nonprofit burnout here.

   
   

5. Cultural shift and slower paceDecision-making processes in NFPs can be more consultative and values-driven. Adjusting to this pace, and the emphasis on consensus, can be frustrating for those used to a faster corporate environment.

   
   

6. Funding instabilityNFPs are often dependent on grants and government contracts. This can create long-term uncertainty, affecting both organisational planning and personal career security.

How Anson can support your NFP career transition

At Anson, we specialise in guiding commercial professionals into impactful roles across aged care, disability, and community sectors. Our recruitment and career coaching services are tailored for executives seeking purpose-driven leadership roles. Whether you're just exploring options or actively preparing to move, we're here to support your journey.

Key takeaways

• NFP employee benefits often focus on purpose, flexibility, and professional diversity.

• While compensation may be lower, wellbeing and legacy are highly valued.

• Adjusting to the sector requires patience, adaptability, and emotional resilience.

• NFPs are increasingly welcoming commercial leaders with strategic experience.

Frequently asked questions

1. Do NFP roles pay superannuation and offer standard leave?

   Yes, most NFP organisations provide superannuation and standard entitlements including annual and sick leave. Some also offer salary packaging benefits.

2. Can commercial skills really transfer into the NFP space?

   Absolutely. Skills in strategy, operations, and finance are in demand, particularly in aged care and disability services.

3. How do I assess if a particular NFP is the right cultural fit?

   Review their mission, annual reports, and leadership structure. Speaking with former employees or sector contacts can also help.

4. What is salary packaging and is it worth it?

   Salary packaging allows you to use pre-tax dollars for expenses, which can increase your take-home pay. It’s common in the NFP sector and worth exploring with a financial adviser.

Ready to take the next step in your career?

If you're considering a shift into the not-for-profit sector, we can help you navigate it with confidence. Connect with our consultants to explore executive roles that match your goals, values, and leadership strengths.