Management legend, Peter Drucker, once remarked that the nonprofit sector (or NGO sector) provided an excellent outlet for a broad range of society’s skills and labor force. What opportunities, then, might a career with a charity or nonprofit entail for an MBA graduate?
The Institute for Policy Studies wing of Johns Hopkins University has produced lengthy research on the nonprofit sector. In a paper dated almost 20 years ago, it looked at 22 countries to determine that the industry was already worth US$1.1 trillion and employed 19 million people full-time.
The sector continues to grow to this day, with Johns Hopkins University’s 2013 report studying 16 countries that have implemented the new UN Handbook on Nonprofit Institutions (designed to help define the work of NGOs.) Those surveyed were spread across each continent, including Australia, Japan, France, Brazil, Mozambique and the US to give a global overview of the sector.
In eight countries, it found the growth rate of the nonprofit sector’s contribution to GDP exceeded the growth rate of overall GDP. The average contribution across all 16 was 4.5% of GDP (similar to figures for the construction industry) and in six countries more than 10% of the workforce was employed by the sector.
Current challenges faced by the nonprofit sector
But that doesn’t mean that the sector is without its challenges, especially in the years that have followed the global downturn.
Bond is the UK membership body for nonprofits working in the arena of international development, counting both large and small NGOs among its c. 400 members – from ActionAid UK and the British Red Cross Society to War Child UK and the Zoological Society of London (ZSL). Its senior manager of effectiveness development is Michael Ashe.
Ashe says that although the recent humanitarian disaster witnessed in the Philippines shows that public support can still be mobilized on a large scale, the recession has hit public giving to UK organizations.
In addition, the extent to which a state supports development initiatives may be decreasing, placing more onus on the role and effect of international corporations in development issues.
“Bond is one of these organizations trying to help the Northern NGO sector to understand what that might mean in practice and how they can make the best of that change,” Ashe says. (The developed ‘north’ and the underdeveloped ‘south’ are reference terms sometimes used within the sector, although it is aware that this is an increasingly out-of-date analysis.)
Ashe is part of a new team at Bond, aimed at supporting NGOs to be more effective in planning, delivering, measuring and communicating the impact of their work.
It does this by offering its members, “access to some cutting-edge tools to help them develop their capacity and a kind of secretariat and collaboration service around putting policy and campaigns together across our membership,” he explains.
Included in this is the provision of courses on nonprofit management elements such as the business of running an NGO, budgetary cycles and how projects are best managed, monitored and evaluated. To help in this respect they are able to call upon some high caliber associates.
“We have professors at places like the Cass Business School who are working closely with us to develop consultancy and training offers on a broad range of fields,” Ashe says.
At a time when, for the reasons above, charities might be expected to do more with less, the sector could do with highly qualified people interested in careers in nonprofit management.
On a very basic level, NGOs tend to offer a more collaborative than competitive working environment. Senior staff-members are often keen to help their colleagues to progress and develop to advance the organization’s collective effort towards a common goal.
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