Not Getting the Nonprofit Leadership Gap

Am I the only one in the sector who cannot make sense of the future leadership gap in philanthropy?

On March 6, 2008, the Chronicle published an article featuring a new report released that week that "underscored just how challenging it will be to recruit people to run nonprofit groups in coming decades: One in three young nonprofit workers aspires to become an executive director and barely more than half definitely want to continue at a charity."

The leader for a follow up on-line discussion on the topic asked:

"As the baby boomers who have founded and led many of the nation's nonprofit groups reach retirement age, who will replace them? A new study of 6,000 potential nonprofit leaders confirms the worst fears of many in the nonprofit world: Roughly two-thirds of the people surveyed said they have no desire to take on executive-level positions at nonprofit organizations. What is driving this trend? What can nonprofit groups do to make leadership positions more attractive to the next generation of executives? Should charities change the way they are structured to appeal to professionals who have different ideas about how to deliver services? And are today's leaders giving young people enough opportunities to lead?"

Here are a few of a whole slew of to my mind very sane questions that were asked by participants:

"Do you think that younger people have seen more clearly the flaws in the working conditions we have all created, and that their "refusal to play" by our rules may actually improve the field significantly, as the jobs will have to change for the better?"

"The emphasis on leadership succession may be putting the cart before the horse. In some cases, the current leadership of organizations is already lacking and ineffective. Without a succession plan, the result will be similar to a Darwin's survival amonth the fittest nonprofits. Do you think this streamlining will highlight more successful, surviving organizations and appeal to future administrators to enter the field?"

As a bit of background, there have been numerous research reports, symposiums and articles concerning an upcoming leadership void at nonprofit organizations and a session on the upcoming leadership gap in every conference in the sector for the past two years. Google "leadership gap in philanthropy." Our friends at Bridgespan and onPhilanthropy have been leading the dialogue.

After eight years working and 25 years volunteering in the sector, and as I read the questions in the on-line discussion, I see absolutely no trend away from these long-time realities:

1) Nonprofit jobs pay poorly, and you must take a 40-50% pay cut to move into the sector;

2) Pensions and deferred compensation are available only at the most elite positions of the most elite philanthropy institutions (Note: An accompanying article in the March 6 Chronicle was entitled "Longtime Nonprofit Leaders Cite Financial Security Worries" that argued that "Money, in particular, the lack of it, keeps many veteran nonprofit leaders on the job year after year");

3) Nonprofit leadership is alive and well, although nonprofit management seems at times to be an oxymoron, and has a lot more to do with lack of resources than long hours or overly complex job descriptions;

4) The responsibility and variety offered by nonprofit leadership positions is years ahead of what you can get access to at the same age in a for profit position; and

5) Giving up 40-50% of your compensation to do interesting work that helps society is a no-brainer.

What am I missing here?

Carla E. Dearing