Attracting — and Keeping — Talent in the Nonprofit Sector

7 12 2010

In my previous blog post, I described the Tom Barron’s ideas about empowering youth.  I have spoken to several people about this concept, and it has generated significant enthusiasm.

Recently, I traveled to Boston and had the pleasure of meeting with Mark Kramer, Managing Director of FSG Social Impact Advisors.  Mark has been an advisor to major foundation, corporate, government, and nonprofit organizations and leaders.  He had a different approach to the youth empowerment idea.

Mark said that attracting young people into the nonprofit sector is much less a problem than it was in the past.  In the 1990s, many of the brightest young people were attracted to the Silicon Valley or Wall Street.  According to Mark, the bursting of the tech bubble followed by the great recession has changed that phenomenon significantly.  Mark asserts that a significant percentage of graduates from the best business schools in the country are not only willing – but are motivated – to work in the nonprofit sector.  These people are not willing to work for $30,000 a year, because they want to raise a family and be able to send their own kids to college.  They are, however, willing to work for $80,000 or $100,000 per year in the nonprofit sector, even though they could make many multiples of that in the private sector.

As Mark explains, “the $80,000 or $100,000 salary range is what enables one to raise a family and send their kids to college – with great frugality to be sure, but without sacrificing a comfortable life.  Somehow we feel that people must make great personal sacrifices to work in the nonprofit sector and help solve social problems – however, there is a category between making sacrifices and getting rich, where the rewards of helping others are compensation enough to attract many of our country’s most talented youth.  And the added cost to our society of recruiting this talent would, I believe, be more than made up for in the greater savings from faster progress solving our social problems.”

The challenge in Mark’s view is the fragmentation of the nonprofit sector in the United States.  There are currently some 1.3 million nonprofit organizations in our country.  Mark asserts that we don’t need leadership development to get the brightest young people to run these organizations as much as we need fewer nonprofit organizations that offer more generous salaries and can attract the best management talent.  Among other things, Mark would advise The Denver Foundation to devote some resources to addressing this issue.  What do you think?

— David Miller, President and CEO, The Denver Foundation