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Business Leadership in the Non-Profit Sector


Business Leadership in the Non-Profit Sector: Leadership crisis: Social organizations – foundations, associations, NGOs, institutions, public and semi-public agencies, joint ventures, even corporate responsibility departments – depend on two resources to fulfill their social mission. One is money. Another, perhaps much scarcer, is leadership. In fact, it can become much harder to find a talented leader than a large donor. Today, there are many organizations that need to attract and retain the talent of good managers who manage to convert resources into real social impact. During the next ten years, the lack of leaders will be impossible to ignore, and it should be must to manage the transitions of the retired executives, with an in-depth analysis, and becoming aware of the problem, which currently is not done because it is not considered as priority, and under the reason of lack of resources.

Business Leadership in the Non-Profit Sector

To put the challenge in perspective, the demand for hiring executives in the nonprofit sector will be the equivalent of hiring more than 50% of all MBA graduates, from all universities, every year for the next ten years. To satisfy the need for new leaders, the non-profit sector has no choice but to think and act first. Second, the non-profit sector has no choice but to think and act in a new way, as the non-profit sector had never done before, the inertia generated twenty years ago and live on rents no longer serves. Most traditional strategies are no longer valid and must be renewed creatively.

Emerging Leadership in Nonprofit Organizations: Myths, Meaning, and Motivations, is based on research initiated on effective leadership in the third sector: current leaders, emerging leaders, those responsible for leadership development and founders of non-profit organizations. The document also identifies the participants that contribute and collaborate in projects and development initiatives and values ​​the role of new leaders as catalysts agents that facilitate collaboration among them, seeking synergies and complementarities, thus increasing the impact. One of the biggest challenges facing non-profit organizations today is their scarcity of strong leaders, a problem that will only get worse as the industry grows and current executives so they are called as boomers. 

Some of the challenges in terms of collaboration and leadership of the different participants are:

  • The Boards of Directors are not always clear about how they can contribute to the growth of the organization and its management.
  • NPOs usually have an unpaid volunteer workforce that can choose to leave their responsibilities at any time. These volunteers are a fundamental human resource for the organization. Their motivations are varied and the rewards they seek are as different as the individuals themselves. Non-profit leaders must know how to attract and motivate both volunteers and staff.
  • The funders or donors can also have their ideas about how the organization should be run, and how their funds should be used. More and more competitors are gaining access to funds and leaders must be able to communicate and demonstrate the impact of donations in relation to their mission to maintain the support of donors and funders.

For all these reasons, leadership capacity in the environment of diverse stakeholders is important and a challenge for non-profit executives and board members. A successful leader like Mathieu Chantelois will always encourage cooperation between employees and teamwork. After 20 years in the corporate world, Mathieu Chantelois decided to dedicate his knowledge and expertise to his passion for helping others in the nonprofit sector.