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Let’s start with what is a not for profit organisation. Simply put, Not-for-profits are organisations that use surplus revenues to achieve their goals rather than distributing them as profit or dividends to shareholders. They include charities, foundations, and service organisations.
There are many reasons why someone might choose to look at the social sector for a career change however in general, the driver tends to come from a sense of disillusion with a work life focused around the endless pursuit of shareholder returns. Many people become attracted a greater sense of fulfilment and purpose that can come from the not for profit sector as a possible direction. This shift however can often be viewed with rose coloured glasses and whilst almost always ticks the rewarding box, can come with its own set of challenges and downsides as well as upsides. This article explores some of the “pros and cons” of such a career change to help you make a more informed decision.
First of all, the positives, the “Pros”
1. Purpose-Driven Work
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. Broadened Skill Set
NFP organizations often require leaders to wear multiple hats due to resource constraints. This necessity can broaden your skill set significantly. For instance, you might find yourself engaging in fundraising, advocacy, community outreach, and volunteer management, in addition to your executive duties. These experiences can make you a more versatile and well-rounded professional.
3. Strong Community and Network
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. 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. Work-Life Balance
While not universal, many NFP roles offer a better work-life balance compared to the commercial sector. The emphasis on employee well-being in many NFP organizations can result in a more fulfilling and balanced lifestyle.
6. Legacy Building
In an NFP role, your contributions can have a long-lasting impact. The initiatives you lead and the strategies you implement can create a legacy that continues to benefit the organization and its community long after your tenure.
No Pro list is complete without the Cons side of the equation:
1. Lower Compensation
One of the most notable disadvantages is the potential for lower salaries. NFP organizations 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 Constraints
NFPs often/usually operate with limited resources. This can mean smaller teams, less advanced technology, and fewer financial resources. These constraints can be frustrating for those accustomed to the robust support systems of commercial enterprises.
3. Complex Stakeholder Management
The NFP sector involves managing a diverse range of stakeholders, including donors, volunteers, beneficiaries, and government entities. Balancing these interests and maintaining positive relationships can be complex and demanding and is often viewed as considerably more complex than the more singular pursuit of greater profits.
4. Burnout Risk
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.
5. Cultural Adjustment
Transitioning from a profit-driven environment to one focused on social good requires a cultural adjustment. The pace, decision-making processes, and organizational dynamics can be vastly different, requiring a period of adaptation and learning.
6. Unpredictable Funding
NFPs often rely on donations, grants, and government funding, which can be unpredictable and subject to economic fluctuations. This can lead to financial instability and uncertainty, impacting strategic planning, projecting over the long-term and in turn impacting your ability to long term plan your own life.
Conclusion
Switching from a commercial executive role to a senior position in the not-for-profit sector is a significant career move that offers both rewarding opportunities and unique challenges. As I’ve described above, on the one hand, you can expect to find genuinely purpose-driven work, professional challenge and leadership development opportunities, a strong community, better work-life balance and the chance to build a lasting legacy. On the other hand, you may face lower compensation, operational resource constraints, complex stakeholder management, burnout risk, cultural adjustments, and unpredictable funding.
In the next post, we will discuss aspects of how to investigate if the Not For Profit sector is right for you and if its is, how to maximise your chances of making a successful transition.
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