There has been debate about professionalizing the nonprofit sector in the last few years. What does it mean to “professionalize” an organization? How does professionalizing an organization impact a community? These questions are more complex than one might think, and many nonprofit leaders are still trying to figure out where the balance is. Below, we dive deeper into these questions and discuss whether professionalizing the sector matters.
First, it is crucial to emphasize the nature of the nonprofit sector. The nonprofit sector is not only complex but also incredibly individualized and distinctive. It is a diverse landscape, built on a foundation of philanthropy and mutual aid, and has evolved to fill the gaps in social issues that the government and private sector cannot. Nonprofit organizations with unique sizes, purposes, missions, operational methods, and funding sources contribute to the sector's rich tapestry. Each nonprofit's sheer diversity and individuality make it a unique and vibrant sector.
Now, let's define our terms. What does it mean to be “professional”? For this blog, we'll define “professionalizing” as adopting a more business-like approach. This approach can be seen as promoting a management and decision-making structure hierarchy, setting goals and hitting targets, having a competitive edge within the translated rhetoric to constituents, and appearance mirroring that of the corporate or private sector.
Why is professionalizing the nonprofit sector such a big discussion? It all boils down to community trust, a crucial element in the nonprofit sector. Let’s face it, many individuals are skeptical of nonprofits. This can be due to a lack of knowledge and understanding or to media coverage of scandals, such as the American Red Cross scandal in 2010 or the Wounded Warrior Project in 2017 (Luzzader). Adapting to a more professionalized environment is not just about efficiency and accountability, it's about building and maintaining community trust, a decision that carries significant weight and potential benefits. It makes an organization more effective and efficient, provides greater accountability, and arguably, can showcase more organization and financial discipline. The question of efficiency, accountability, and integrity becomes increasingly apparent when an establishment lacks professionalism.
Introducing a business-like environment in nonprofit organizations may seem like a good idea at first. However, it's important to remember that all nonprofits are different, and trying to make them more 'professional' can be risky. This approach can lead to negative consequences, such as focusing more on output, managing costs, using competitive practices, and emphasizing managerialism and bureaucratization (King, 2016). Most importantly, this approach can cause the organization to shift away from its original purpose or mission. In other words, prioritizing meeting targets and making cost-effective decisions over ensuring that community needs are fully met can undermine the very reason the organization exists. This change in focus puts the entire nature of the nonprofit sector at risk.
So, where is the line? Nonprofits rely on the community's trust to thrive and achieve their goals as well as to remain relevant to the community, donors, and other stakeholders. Instead of focusing on reaching specific numbers, professionalizing nonprofit organizations involves adopting business-like practices to ensure the organization can effectively pursue its mission. This includes setting targets and goals, as well as identifying appropriate and effective ways to measure progress and impact. It also involves handling forms and permits accurately and promptly. To professionalize their staff, nonprofit organizations can provide ongoing training and networking opportunities and promote a culture that reflects the nature of the organization.
References
King, D. (2016). Becoming Business-Like: Governing the Nonprofit Professional. Nonprofit and Voluntary Sector Quarterly, 241-260.
Luzzader, A. (n.d.). Biggest Nonprofit Scandals in Recent History. Retrieved from Pulse: https://www.pulseforgood.com/blogpost/five-of-the-biggest-nonprofit-scandals-in-recent-history
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