Deeds over dollars: the corporate roller coaster has left many professionals in its wake. One route out of the chaos: the nonprofit sector

Black Enterprise, Nov, 1995 by Cassandra Hayes

CAREER FORECAST

The profit sector is no longer considered a dumping ground for corporate outcasts. "We don't want bankers who have failed their banks and communities setting examples for our children," says Fernandez. In fact, nonprofit organizations are competing with other industries for quality personnel.

Government budget cuts have set the stage for strategic alliances between many compatible nonprofit organizations and, as a result, the need for experienced managers is high. Accountants and lawyers will be challenged in a sector that must deal with liability and be more accountable to its donors, the IRS and the general public.

As the nation leans toward managed health care, hospitals, nursing homes and counseling centers will need health care professionals who can guide them through the transition. Those skilled in government relations will fare well as community block grants take center stage. Human resources professionals should come prepared to recruit and retain not only paid employees but volunteers as well. Fund-raising, marketing, grant writing, program development and communications are other critical areas to consider.

A key challenge for nonprofit groups is adopting a more corporate-like structure without sacrificing their uniqueness, which separates them from the government and corporate sectors.

One shaky ground is salaries.

Currently, salaries in the nonprofit sector are, on average, 1 5% lower than in the private sector. But that's changing as nonprofit groups look for innovative ways to make the sector attractive. Incentive and performance pay, bonuses, gainsharing and retirement plans--staples of the private sector--are gaining ground. Perquisites such as tuition reimbursement, flexible hours and day care provisions are also finding their way into compensation packages.

According to a 1994 Coopers Lybrand nonprofit salary survey, executive directors averaged $72,500 a year. Deputy executive directors made $56,900, and top development and financial managers averaged $46,000. The top human resources professionals earned $42,200.

Organizations based in the Northeast generally pay more than those in other regions. Because of the high cost of living there, salaries in New York rank among the highest in the nation. According to a 1994 Ernst & Young survey, top executives at New York nonprofits averaged $137,000, while chief financial officers raked in $81,300. And the top executives at foundations earned the highest base salary, $172,600.

HURDLES ALONG THE ROAD

Salary won't be your only obstacle. Long hours, limited manpower and lack of funds are other drawbacks. Whether through fees, contributions or grants, finding funds is integral to the survival of nonprofit groups.

One source of funds nonprofit groups continually grapple with is targeted giving. Sometimes when corporations channel their philanthropic dollars in a particular direction, it can conflict with a nonprofit's mission. "Because a corporation has decided that it wants to target an area doesn't mean that's where the greatest need is," says Ralph Dickerson Jr., president of the United Way of New York City, the largest United Way agency in the nation.