In my 25 years of leadership in the not-for-profit sector as a senior leader, a CEO and as a board member on several non-profit boards, what has become clear is that attention to good, solid, business practices is as critical to ensuring that the mission is met50 for clients and stakeholders, as it is to ensuring solid returns to shareholders and other investors. In the “old days” particularly in the human services sector, leadership often emerged from within the ranks. Graduate credentials in the areas of law, business or management were rare; and the acknowledgement that such credentials were useful in managing the enterprise even more rare. This began to change as we entered the decade of the 1990’s. The attention to governance and financial management issues, increased scrutiny of contractual agreements with providers by government, the growing sophistication of individual, corporate and foundation donors, and the challenges of managing the workforce have all converged to create a non-profit sector not unlike its for profit colleagues.
So, a message to the leaders of all types of organizations—the practices that deliver on mission will also generate strong margins.
Reach Joan Wallace-Benjamin and the Home for Little Wanderers at: www.thehome.org