Non-Profits Seek New Kinds of Leaders with Help from Search Firms
August 12, 2024 – Executive search for the non-profit sector often mirrors broader hiring trends, with a distinct focus on leadership, strategic vision, and organizational impact. Recruiters say that non-profits, generally, are increasingly seeking executives and management teams who can provide strong leadership, articulate a compelling vision, and inspire stakeholders.
Like most sectors, there is a growing emphasis on diversity and cultural fit at the executive level, with organizations seeking leaders who can promote and champion DEI initiatives. In addition, candidates with a proven track record in fundraising, donor relations, and revenue generation are highly sought after.
Search consultants also say that non-profits need leaders who can navigate crises with resilience, maintaining organizational stability and continuing to deliver on their missions. Ultimately, non-profits prioritize executives who are passionate about their mission, committed to making a difference, and capable of delivering tangible outcomes that advance social or environmental causes.
“Executive search for non-profits is quite active at the moment,” said Nat Schiffer, CEO of The Christopher Group (TCG). “Many non-profit organizations are looking to strengthen their leadership teams to navigate the complexities of the current socio-economic environment. The demand for experienced leaders who can bring strategic vision, operational efficiency, and fundraising expertise is high. As non-profits face increased pressure to deliver on their missions with limited resources, the search for capable executives who can drive growth and innovation remains robust.”
The non-profit sector offers senior executives a unique opportunity to leverage their skills and experience for meaningful impact and mission, according to Mr. Schiffer.
A Tangible Difference in Society
“Many executives are drawn to non-profits because they want to make a tangible difference in society, working on causes they are passionate about,” he said. “The sector provides a sense of purpose and fulfillment that can be more challenging to find in the for-profit world. Additionally, non-profits often present opportunities for creative problem-solving and leadership in areas such as community development, social justice, and environmental sustainability, which can be deeply rewarding.”
Mr. Schiffer notes that The Chistopher Group typically presents candidates from both for-profit and non-profit backgrounds when gathering talent pools for non-profit executive searches. “This approach allows us to ensure a diverse range of skills and perspectives,” he says. “For-profit executives often bring valuable strategic and operational expertise, while those from the non-profit sector may have a deeper understanding of mission-driven work and experience in areas like fundraising and stakeholder engagement. By considering candidates from both sectors, we can find the best fit for the organization’s specific needs and culture.”
“In 2024, non-profits face two significant challenges: financial sustainability and talent acquisition,” Mr. Schiffer said. “Securing consistent funding amidst economic uncertainties is a major concern, requiring organizations to strategically manage their financial resources and diversify their income streams. Additionally, attracting and retaining skilled professionals in a competitive job market is crucial. Non-profits must offer compelling value propositions to potential employees and create supportive, mission-driven work environments to keep top talent engaged and committed. Addressing these challenges demands strong leadership and innovative strategies to ensure long-term success and impact.”
“While the non-profit world is facing threats from an unprecedented number of sources at this moment in time the sector continues to steadfastly adapt and evolve to meet the needs of our society,” said Maeve Clifford, managing partner and co-founder of Pearl Street Collective. “Economic fluctuations mean rising costs, tighter budgets and increased competition for limited dollars. As a result, we’ll see more organizations diversifying revenue streams and investing in resources that could pay dividends later. Mid-size, major, principal, and planned giving programs are on the rise, as are social enterprises and fee-for-service models. We’ll also see more organizations forming strategic partnerships, creating cost-saving efficiencies while amplifying impact.”
7 Key Trends Impacting Non-Profits
Having arrived at the halfway point of the year, the non-profit and social impact practice at Koya Partners | Diversified Search Group, recently pulled together some key trends they have been seeing. In a new report, managing directors Michelle Bonoan and Marissa Delgado and managing associate Tiara Muse identified seven key themes.
Ms. Clifford also notes that diversity, equity, and inclusion (DEI) continues to remain a critical yet challenging and complex area for the sector. “A June court ruling against the Fearless Fund’s Strivers Grant Contest, part of a broader trend of legal actions against DEI programs in both the corporate and non-profit sectors, challenges the legality of programs designed to support designated populations,” she said. “The decision could have significant implications for a wide range of mission areas and the many individuals and families who rely on the country’s social services safety net.”
“Likewise, hiring continues to be a significant challenge in some parts of the sector,” Ms. Clifford said. “Fundraisers are in high demand with many positions remaining vacant for months at a time. One way organizations are starting to address that need is by investing in bench strength — pipelines of entry level development professionals who will grow with their philanthropic programs. Also needed are more workers adept in areas like digital marketing, data analysis, and constituent engagement.”
“While it’s plain to see that non-profits will continue to face a complex array of challenges in 2024, the sector will prevail thanks to a culture of evolution, and in many ways will emerge as a stronger version of itself,” Ms. Clifford says.
Fierce Competition
“The competition for talented individuals remains fierce in the non-profit sector,” said Shelli Herman, founder and president of Shelli Herman and Associates. “Following the pandemic, many leaders who worked to keep their organizations afloat switched roles, retired, or pursued entirely new opportunities. This trend is expected to persist for another 12 to 24 months. We are seeing transitions at all levels, especially at the CEO level. It also appears that everyone is looking for the same qualities, seeking innovative, transformational individuals who can juggle many balls at the same time. While this is not new, it is more prevalent than ever and makes searches more complex and nuanced, presenting a unique challenge.”
Ms. Herman hears from many people in the private sector who are increasingly interested in non-profit work that such roles give them a higher sense of purpose. “Compared to many private sector jobs, non-profit positions often offer a more profound sense of fulfillment beyond just financial rewards,” she said. “Individuals believe that positively impacting people’s lives, communities, or the environment can bring significant satisfaction and purpose to their work. Switching to non-profit work can provide an opportunity to learn new skills and expand professional horizons. Non-profit organizations require various skills, including program management, fundraising, advocacy, and community engagement. This transition can allow individuals to develop skills they may not have had the chance to cultivate in the private sector, leading to valuable and diverse experiences.”
The challenges ahead are significant for the non-profit sector, according to Ms. Herman. “As organizations rely more on digital connections, third-party technologies, external data sources, and outside service providers, they become more susceptible to direct attacks and their consequences, such as financial, operational, and reputational damage from an attack on a vendor or partner,” she says. “As the pandemic subsides, temporary disruptions to the labor market are evolving into chronic issues. Workforce shortages and skill gaps persist and will be worsened by demographic changes and evolving attitudes towards work-life balance.”
Related: Surging Non-Profit Sector Seeks Senior Leaders
“Simply offering higher pay will not be enough to attract new staff,” Ms. Herman said. “Workers from all generations, especially Millennials and Gen Z, who are increasingly prominent in the workforce, expect more from their employers. Employees increasingly seek flexible work schedules, opportunities for career development, and workplace initiatives that promote diversity, equity, and inclusion.”
“In the past 15 years, fewer households have been donating to non-profits, and the contributions from small and medium donors have been decreasing,” said Ms. Herman. “However, large donations from billionaires have been masking these downward trends by pushing the total amount of charitable giving to new heights. While it may be tempting to celebrate the overall increase in giving, it’s essential to consider where the new mega-donations are going and where the smaller donations are no longer being directed.”
Although there has been a cooling off from last year’s frenzied market, the non-profit search sector continues to be strong, according to Michelle Kristel, managing partner of McCormack+Kristel. “Robust activity can be attributed to several factors, including a rise in transitions related to two distinct generational trends,” she said. “During the pandemic, many boomer-age executives delayed retirement to steer their organizations through seismic financial and cultural disruptions. Over the past two years, as organizations have stabilized and adjusted to the new normal of remote and hybrid work, searches for successors to retiring executives have accelerated.”
Emergence of a New Generation of Non-Profit Leaders
Additionally, Ms. Kristel says there’s a palpable energy fueled by the emergence of a new generation of non-profit leaders. “Like their predecessors, they are driven by a strong sense of purpose and a desire for impactful work,” she said. “However, they are more likely to change jobs in pursuit of opportunities for growth and impact and, of particular importance to younger staff, to find organizational cultures that are aligned with their personal values. The combination of a wave of executives retiring and the openness of next-gen leaders to explore new opportunities has created a dynamic environment for executive search within the non-profit sector, driving significant activity in the market.”
Just Released: 2024 Corporate Culture Report
As leaders recognize the critical role of culture in organizational success, building sustainable cultural change for engagement, performance, and growth is now essential. Emphasizing psychological safety allows employees to express ideas, take risks, and voice concerns, driving innovation and engagement.
Hunt Scanlon Media’s 2024 Corporate Culture Report shows how a strong, cohesive culture transforms organizations. By prioritizing cultural synergies and shared values, companies can attract and retain top talent while fostering innovation. Download now!
“As a search consultant charged with finding unicorns, we seek and evaluate candidates with myriad backgrounds to curate talent pools comprising candidates with diverse perspectives and lived and professional experiences,” Ms. Kristel explains. “Generally, however, corporate executives constitute a minority of the candidates we introduce to our clients. The reason why for-profit candidates infrequently advance in the selection process relates to the specialized technical skills and personal qualities required of non-profit leaders.”
“We’ve seen a bit of unevenness in 2024, with a lot of hiring activity at the beginning of the year, then a bit of a slowdown in Q1,” said Molly Brennan, global managing partner, non-profit and social impact practice at Diversified Search Group. “But we’re seeing a quick rebound that is fueled by the continuing pace of retirements from long-time leaders and founders as well as patterns of giving in philanthropy.”
“One of the lasting effects of COVID is widespread desire to align personal and professional missions and interests,” Ms. Brennan said. “We hear from so many candidates who are eager to take their private sector skills and apply them for greater social impact.”
Ms. Brennan says that her firm’s goal is to provide our clients with candidates who bring foundational skills required for success in the role while remaining open to where these skills may have been developed and mindful of the realities of transitioning from the for-profit sector to the non-profit sector. “Many boards and non-profit leaders value business acumen and management skills honed in the private sector and then deeply assess whether candidates can effectively apply those skills in a non-profit setting,” she said.
Related: Navigating a Non-Profit Succession Plan
Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media
