Daring to Lead, 2006, a study by Compass Point Nonprofit Services includes the input of nearly 2000 nonprofit executives from across the country. The study found that nearly 75% of current executives don’t plan on being in the same job in five years due to multiple pressures that lead to stress and high rates of burnout. I’ve detailed some of the findings below.
Finding 1: Executives Plan to Leave Their Jobs — But Not the Sector — Within Five Years
Executives at small organizations are even more likely to plan on leaving.
Finding 2: Boards of Directors and Funders Contribute to Executive Burnout
73% of executives would like their board to become more effective in fundraising. Many are also dissatisfied with foundations and other funders, especially because of lack of willingness to support operating expenses.
Finding 3: Executives Believe They Make Significant Financial Sacrifices to Lead Nonprofits
Women in the sector are even more likely to lead small, low-paying organizations.
Finding 4: Bench Strength, Diversity, and Competitive Compensation are Critical Factors in Finding Future Leaders
Many nonprofits lack the staff size needed to develop leaders and provide a career path internally. However, current executives believe that future leaders will demand significantly higher salaries, making it even more challenging to recruit the skilled, diverse leadership base that the sector will need.
Reading this report helped me see the other side of the Leadership Deficit issue. Having worked for a small nonprofit in the past, I am very aware the EDs have to shoulder a lot of responsibility. It can be a difficult and thankless task at times, and developing leaders understandably takes a back seat to keeping the organization afloat.
What do all of you think? Are there ways that senior leaders and young professionals can work together to solve the problems in the nonprofit sector?
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23 July 2007 at 10:27 pm
Linda Miskovetz Falstad
As an executive in the NFP sector for the last 15 years I stand behind findings #2, #3, and #4. As the founder of a small NFP, I resigned a part-time, unpaid position in September 2006. The board offered a salary if I agreed to do all fundraising and the board would be management. Do it without me! I was burned out from 3 years of being overworked and underpaid. I had funding for program staff, but not administration. An issue of funders.
Continuous board development is a necessity in the NFP sector. Who pays for this? Often it is a NFP doing board development for another NFP. This works if it is not fee-based.
Career development and professional development are also necessary for the small NFP staff. Look to a local association of NFPs or a university for resources.