Posted 11/29/21
When I made a career change to the nonprofit sector, there seemed to be a subtle stigma regarding nonprofits hiring people from the business world, but it was not obvious (and it might even be changing somewhat). I am certainly not claiming to be an expert in this comparison, but I have observed certain consistencies and tendencies of each, and how they may overlap based on my own experience of moving to the non-profit.
In an attempt to explain this, it might be a good idea to look at the history of some organizations. It really comes down to decisions of the heart vs. those of the head.
In the nonprofit, organizations like the United Way (where I started in the nonprofit) began in the late 1800’s where a few people realized that others in their neighborhoods were poor and suffering, so they decided to go house-to-house collecting money in order to help their neighbors. There was no compensation, just a motivation from the heart to make the lives better for those in need. The Salvation Army began in the 1800’s in London where a Christian preacher decided to walk through the city talking about Christianity. While out preaching, he noticed so many individuals suffering in poverty and wanted to help. They began not only preaching, but also started collecting money to help the poor. The rest is a great history of doing good. A more recent organization, but no less important, began in Illinois around 1982 as a nun from my church had a vision to feed the hungry in the area of the parish. Again, an act of the heart. This small food pantry helped feed the local community, and over the years grew into a major distribution center covering several counties as a branch of Feeding America which is a national hunger relief organization. If you were to look at almost any small startup or growing nonprofit, you will find either a motivation to do good from the heart, possibly a religious motivation, or simply a group of people who noticed a problem and gathered to make positive change. That is the basic culture of nonprofits for the most part.
In the for-profit world, say the history of Montgomery Ward, for example, a person who saw an opportunity to help people find what they needed to purchase through a catalog, at a reasonable price and easily delivered by mail to their homes. The motivation was to solve a problem and make a profit. Sears, Macy’s, Tesla, General Electric and so many other entrepreneurial corporations originated through the desire to solve a problem and make a profit. That is the for-profit culture.
So why the apparent hesitancy in many nonprofits to hire those from business, especially fundraising? It might be because of their histories and reasons for existence. One is looking to satisfy a need for little or nothing in return, an effort to do good, while the other is looking to satisfy a need and make a profit at the same time.
I can only speak from experience but when I entered the nonprofit after working in business, the concern seemed to be that introducing business tactics would move the organization away from the heart. I could see places where business strategies would benefit the mission of a nonprofit, but these strategies were focused on competitive profitability. It is a fine line to walk and those in the nonprofit have dedicated their careers to serve others in need, not work to become wealthy. Adding individuals who come from profit-making organizations can be seen as threats to the work of doing good in the service of others in need. The business culture can disrupt the non-profit culture by pulling in the direction of profits over service, thus creating a concern of adding business people to the nonprofit staff.
If you are considering a move from business to the non-profit, then it is in your best interest to gain satisfaction via the number of people served rather than beating the competition. (There is competition in the nonprofit for the donor dollar, but the goal is not beat the other organization, but to collaborate to solve problems. More on this in later posts). This might seem basic, but as described above, the cultures are the DNA of each type of organization, and often do not mesh. Both have a purpose, both have a mission, but both also differ in their philosophy of satisfying a need. Some non-profit organization fear that business people may become frustrated by the fact that the nonprofit organization may appear slow-moving, less aggressive, and not focused on profits, even if opportunities present themselves. This can be disruptive to an organization focused on serving others, so it helps to know this going in if you are from the for-profit wishing to make the career change.
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