The complexity of leading nonprofits has become increasingly challenging and will continue to become more so in the future. Adding to these challenges, the after-effects of COVID-19, have left thousands of not-for-profit organizations at risk of closing their doors. This could be devastating to our communities and the millions of people who depend on these organizations. Now—more than ever—is the time for innovative leadership in the not-for-profit sector.
Nonprofits are faced with complex issues, including:
• operating within an uncertain funding environment,
• an expectation from funders to partner with other providers who are also competitors for funding,
• continued increase in community needs,
• an expectation of ongoing evaluation and increased public accountability,
• complex human resources issues such as unionization, staff retention, and provincial staff training expectations,
• increased competition for limited funds,
• increased pressure to merge agencies,
• an expectation to create and operate innovative social enterprises, and
• a growing need to use technology without corresponding funds to support the purchase the required technology.
And these are only a few of the challenges of operating a successful nonprofit! Investing in leadership development is one answer to the question of how to strengthen and expand the capacity of Canada’s nonprofit sector.
Skill building
Most of the individuals who have moved into management in nonprofit organizations have been promoted from within. In many cases, these people started in front-line positions and grew into supervisory and management responsibilities. Their background, education and training in social services, social work, community services, and arts administration does not necessarily include formal management training. As managers, they’ve learned business skills on the job.
To deal with the complexities of leading nonprofits, future nonprofit leaders are going to need a combination of nonprofit and business training. Graduate schools offering MSW and MPA programs are beginning to offer more business-oriented leadership courses. Business schools are also increasingly adding full-time and part-time courses dealing with nonprofit leadership. In the future, we can expect to see more MBA and MPA graduates moving directly into nonprofit leadership roles.
Current nonprofit leaders should consider pursuing additional business skills training to develop and hone their management skills and address immediate challenges. Business schools are offering short-term leadership training programs to assist current leaders in adapting business skills and knowledge to effectively lead nonprofit agencies in a world growing more complex each year.
To address the ever-changing nature of leadership in the nonprofit sector we will need new, innovative thinking, and this will include applying, and evolving, business theories to meet the challenges of the sector.
The evolution of nonprofit leadership training makes me think of one of my favourite Albert Einstein quotes, “We cannot solve our problems with the same thinking we used when we created them.”
Ellis Katsof, a principal with The Osborne Group, is a highly accomplished executive with experience in strategic visioning, business planning, and fundraising. He has extensive strategic planning experience having completed 28 NFP strategic plans across Ontario and is the co-designer of the Strategic Plan “Placemat.” Ellis is also the author of “Life 3.0: Protirement NOT Retirement.” Ellis can be reached at ekatsof@osborne-group.com
