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March 2006

ShareThe Non-profit Sectors Leadership Deficit

Over the next decade, non-profits with revenues greater than $250,000 will need to attract over 600,000 new senior managers.  If the sector experiences significant consolidation and lower than projected turnover rates, the number needed may be closer to 300,000. However, if turnover rates are higher than expected, the need will increase to one million.  By 2016, these organizations will need nearly 80,000 new senior managers per year.

This report states that the non-profit sector lacks resources to develop large numbers of managers internally.  The sector also lacks robust management education and executive search capabilities.  To address the leadership deficit, boards and current managers, as well as donors, should:

  • Invest in building skilled management teams
     
  • Refine management rewards to attract and retain skilled leaders
     
  • Expand recruiting to foster career mobility

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