Managing in Nonprofit Organizations

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Nonprofits survive on people's goodwill and generosity.

Layla has just started her new management role at a charity, after several years in the private sector. She's delighted to inherit a passionate team that is committed to the organization's mission.

However, she soon discovers that all is not well. Morale is low, her team members frequently work long hours with little recognition, and they're worried about their jobs because of recent funding cuts. Plus, a few people are underperforming because they haven't received important training as a result of a spending freeze.

Managers in nonprofits need the same skills as those in the public and private sectors. But to succeed, they must overcome specific challenges and have a clear understanding of this unique environment.

In this article, we look at what makes this sector unique, and explore how you can get the best from yourself and others in nonprofit organizations.

What Is a Nonprofit Organization?

Nonprofits – also known as not-for-profits, charities, social enterprises, NGOs, and the "third sector" – exist to benefit the public rather than to make money. They can have a local, national or international focus, and tend to operate in education, law, health care, emergency, and social services. They usually fill the gaps in services provided by the public sector....