The Alexander Group: 2012 Survey of Hiring at Advocacy Not-for-Profits

By: Elizabeth Stuart 

We have been conducting executive
searches for not-for-profits for nearly 25 years. In the early days,
there was very little crossover of executives from corporate America to
not-for-profits. And that was just fine with not-for-profits,
because they felt executives from the corporate world would not fit in
or understand their culture. This has changed over the years for several
reasons. With internet sites like GuideStar and Charity Navigator,
many potential donors evaluate charities to see which ones will most
efficiently use their donations.  Not for profits have responded by
instituting rigorous financial controls, instituting best practices and
using technology to leverage their operations, creating positions where
corporate executives would be a natural fit. Lastly, positions that have
been the backbone of corporate America such as strategy, marketing, and
market intelligence are now part of the executive team at many
not-for-profits.  On the other side of the coin, many executives in
corporate America want to give back and see opportunities to use their
talents for the greater good. Add to that a disillusionment following
the economic downtown and the belief that not for profits are nicer
places to work and a trend has begun to build. 

Early
this year, we conducted a survey of 500 not-for-profit executives at
traditional not-for-profits (excluding hospitals, universities and
government) and national voluntary health associations which confirmed
our hunch – not-for-profit organizations are hiring more executives from
corporate America than ever before.

Sixty
percent of the executives our respondents hired in the last five years
came from outside the not-for-profit industry.  One respondent noted,
“While we have always considered candidates from outside the
not-for-profit sector, we have found that the current environment makes
us a more an attractive option for those without non-profit
backgrounds.”

A majority of Chief
Financial Officers and Chief Marketing Officers hired within the last 10
years at the nation’s top 10 not-for-profits had earlier career
experience in the for-profit sector. The economic downturn of 2008
deeply impacted not-for-profit organizations, and even two years later
in 2010, charitable giving was still 6 percent below 2007 donations.
As a result, many not-for-profits have sought ways to increase
donations, one of which is to improve the quality of their fundraising
function and another is to increase awareness of the organization’s
cause  This was reflected in our survey as respondents indicated that
over half (56.7%) of executives hired were Chief Development Officers,
followed by Chief Financial Officers and Chief Marketing Officers, with
45% of organizations hiring one or both.

For
our a free copy of our survey’s results, including hiring factors and
ability to adapt to a not-for profit environment, please e-mail [email protected]. 

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