I attended a conference over the summer, and during one of the table discussions a woman who has worked in the NFP (not for profit) sector most of her life  said she went into it accepting a lower salary than if she had taken a comparable job in the private sector. She said she was willing to accept this because she wanted to do a job that contributed to her community.

Everyone loves the idea of doing something good and feeling useful, but there’s a common misconception in the NFP/social enterprise sector that we need to accept a smaller salary to do that. Why do we assume that people who work in the NFP sector should put the mission of the organization above their own ability to earn a living?

In my professional experience, both as an employee and as a recruiter in the for-profit sector, if you are not paying your employees a ‘market’ salary you are likely not going to attract the right people to your organization.

In the past – perhaps with more reliable government funding, sustainable donor networks and a volunteer network –organizations were able to operate as best they could and serve their communities. They were able to make do with the resources they had available. In many cases, that old model is no longer applicable. Public funding is drying up and  organizations can no longer rely on their pre-existing donor network.

NFP organizations are under pressure to change the way they operate and run like a business. They have to let go of the well-meaning, but inexperienced volunteer model, and start to hire people with the right skills to do the job. In a lot of cases, this will mean hiring from the for-profit sector. This leads to other issues (i.e., culture shock) but it is necessary to make these organizations sustainable within their existing funding structure. This has the added benefit of creating opportunities to look for new revenue sources. The more revenue the organization generates, the more ‘good’ they can do.

In 2020, economic sustainability for NFP and social enterprise will be about investing in the right people with the right skill sets. This means making an effort to hire experienced professionals who are as passionate about RESULTS as they are about the mission.