nonprofit leaders of tomorrow: 4 things to know

Nonprofit Leaders of Tomorrow :

4 Things You Should Know Carol Loftur-Thun

CEO and Executive Director, The Women’s Center

4 Trends   Government

outsourcing of social services & proliferation of nonprofits

  National debt & aging population

  Growth of Internet & social media

  Professionalization of social services

Carol Loftur-Thun, CEO and Executive Director, The Women’s Center

Government Outsourcing & Proliferation of Nonprofits

  Less costly, reduced liability & more accountability

  Leverages in-kind donations & volunteers

  Are nonprofits doing government’s job?

  One result: more & more nonprofits—58,000 new 501(c)3 applications to IRS in 2008 alone


National Debt & Aging Population

• Looming hard choices for society—social security & Medicare costs

• Population shift to older, conservative demographic

• Aging population with higher health care costs

• Government cuts in human services makes increased cuts & competition for nonprofits almost inevitable


Growth of Internet & Social Media   Revolutionizing

communication & commerce

  Revolutionizing political campaigns

  Creating fast-paced true marketplace & democracy?

  Provides new powerful communication, organizing, education & fundraising tools


Professionalization of Nonprofits   Nonprofit graduate

programs

  Medical model

  Compartmentalization & specialization

  Those served are now “clients” & “patients” instead of people

  Demographic shifts & volunteering trends


4 Challenges

  A new “Pink Ghetto”?

  Undervalued & under-resourced

  Getting a voice at the table

  The nonprofit leadership challenge


The New “Pink Ghetto”?   Traditionally teaching & nursing

were the “pink ghetto”

  Lower salaries in nonprofits than other professions

  Mostly women fill nonprofit positions, especially in smaller organizations

  Human service nonprofits serve children, elderly, sick, poor, people of color—those often marginalized in society

  Are nonprofits the new “Pink Ghetto”?


Undervalued & Under-resourced   Nonprofits often seen as just

“charities”

  Nonprofits have to “beg” for money

  Short-staffed, inadequate facilities, little working capital, lower salaries than government or business

  Always “changing water into wine”

  Toughest jobs out there—best & brightest work harder with less to get more done


Need a Voice at the Table

  Just like in “pink ghetto” professions, nonprofits have little power or say in big decisions

  Nonprofits need a “voice at the table”

  Third Sector with Business & Government

  Largely ignored in decision-making—recent health care debate is an example


The Leadership Challenge   Long hours, low pay & lots of

pressure

  It’s running a business with more accountability, higher standards, & fewer resources—”a levitation act”

  Only business where more customers equals less resources

  ¾ of EDs will leave jobs - but not nonprofit sector – within 5 years .

  Boards & funders contribute to ED burnout.

  EDs believe they make significant financial & family/work-life sacrifices to lead nonprofits (Daring to Lead 2006, Meyer Foundation & Compass Point)


4 Opportunities   Social media &

Internet

  Nonprofits are the Third sector

  Solving the leadership challenge

  New business models


Social Media & the Internet   New ways to educate,

fundraise, recruit, organize

  Email, Facebook, Twitter

  The Obama campaign model

  Pepsi Challenge & Lilith Fair Competition

  SaveWEAVE campaign

  Razoo Give2Max day


Nonprofits are the Third Sector   Nonprofit Congress

  V3 Campaign

  Nonprofit Roundtable in DC--Beyond Charity: Recognizing Return on Investment

  Politicians need to see votes & businesses need to see customers when they see nonprofits

  Organizing the sector to achieve political & economic muscle is key


Solving the Leadership Challenge   Innovate new leadership

styles & forms

  Collaborative leadership

  Job-sharing; Sabbaticals; Co-EDs; 9 month jobs; higher pay; more resources so better work/life balance

  Challenge boards to become more savvy, more realistic, more skilled


New Business Models for Nonprofits   Likely consolidation of

nonprofits

  Get more efficiency—bigger bang for the buck

  Use full range of strategic alliance options for nonprofits


4 Skills You Need In Your Toolbox

  Finance & accounting

 Management

  Social media

  Communications & marketing


Finance & Accounting   Can you read a balance

sheet?

  What is ROI?

  How about debits & credits?

  Can you put together an Excel spreadsheet budget?

  Financial acumen is a must for nonprofit management & program management


Management

  Formal management skills are critical for performance—for example:

  Forming, Storming, Norming & Perfoming = Group Development

  Tannenbaum-Schmidt Leadership Continuum from collaborative to authoritative & Situational Leadership

  Powerpoint, business writing, meeting facilitation, people skills, etc

  Nonprofit leaders must speak the language of business & government too


Social Media & Networking   Stay abreast of

technology as a powerful tool in your toolkit

  Facebook, Twitter, Linked-In, Blogging

  Will keep evolving

  Innovate & envision new ways to connect with those we serve & those who support us


Communication & Marketing   Top communication skills are the

gold standard for leadership

  Need ability to advocate, persuade, sell, & most of all listen

  Written, verbal, visual & non-verbal communication skills plus active listening skills key

  Crowded world of information—how can you make your message stand out?

  Branding & marketing—if you don’t know it, learn it


Wrapping Up

  Pursue lifelong learning—”if you’re not learning, you’re dead”

  Make time to stay abreast of strategic trends, challenges & opportunities

  Look for intersections & synergies, and realize change is the norm & will accelerate

  Practice the “jiu jitsu” of turning crises into opportunities


nonprofit leaders of tomorrow: 4 things to know

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