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Navigating the challenges and opportunities in the Non-Profit sector

| 14. elokuuta 2024

NGOs and not-for-profit entities play an increasingly pivotal role in addressing complex global challenges. From environmental sustainability to social justice, these organizations operate at the forefront of creating meaningful change. However, the sector faces significant challenges, including funding pressures, regulatory complexities and workforce sustainability.

As traditional responsibilities shift from government bodies to NGOs, there is a growing demand for skilled leadership that can navigate these intricacies while driving impactful outcomes. Malcolm Duncan, Director at Kestria Australia, was featured in the 2024 Hunt Scanlon Non-Profit Executive Recruiting Special Issue, where he provided an in-depth account of his insights and professional experiences. Malcolm Duncan co-founded Kestria Australia: The Insight Group in 1994, offering executive search and consulting services for top Australian companies and Fortune 500 organizations. He specializes in identifying senior executives for NGOs and not-for-profits, conducting team assessments, organizational reviews for M&A, and offering management assessments and executive coaching.

How active is the executive search for non-profits right now? 

The not-for-profit sector has been highly active in executive search throughout 2024. Like any other sector, it is driven by the need to maximize impact, secure funding, and effectively engage with all stakeholders, ranging from volunteers to government bodies. In the Australian market, we have seen particularly high activity in three key areas: aged care, childcare, and disability services. These sectors face funding pressures and regulatory changes, requiring leadership that can identify opportunities for growth, including merger and acquisition activity.

Why is the non-profit sector attractive to senior executives perhaps looking to steer away from the for-profit sector? 

The not-for-profit sector is increasingly attractive to senior executives from commercial backgrounds because they bring valuable skills and experience while finding greater meaning and purpose in their careers. Historically, executives transitioned to the non-profit sector at the end of their careers to give back. However, this trend is shifting, with individuals now seeking careers that align with their values earlier in their professional lives. This is especially true for those with expertise in M&A, digital marketing, and operational leadership.

Do you usually present candidates from both for-profit and non-profit backgrounds when gathering talent pools?

When presenting candidates for leadership roles and board positions in the nonprofit sector, we draw from both not-for-profit and commercial backgrounds. A key characteristic we look for is evidence of experience and commitment to the sector, such as volunteer work or serving on a nonprofit board. Leadership in a not-for-profit setting is increasingly complex and requires resilience and the ability to engage with a diverse mix of stakeholders. Managing a large, complex non-profit is no different from running a major commercial enterprise.

What challenges do non-profits face in 2024?

In 2024, the not-for-profit sector faces several challenges. The primary challenge is workforce-related: attracting and retaining skilled staff, while managing volunteer engagement amid a decline in volunteering. To address this, not-for-profits are seeking innovative marketing and outreach strategies. This occurs against a backdrop of government funding constraints and a significant decrease in donations due to economic uncertainty. Not-for-profits are also leveraging technology to gain attention in Australia. Additionally, significant regulatory changes in areas like childcare and aged care, along with increased compliance requirements, are straining already scarce resources.

The Kestria NGO and Not For Profit Practice Group        is a crucial ally for organizations transitioning services traditionally managed by governments. With deep industry knowledge, this group addresses the complexities of shifting responsibilities to NGOs and NFPs, which are increasingly vital in tackling global issues across borders. Kestria specializes in identifying social entrepreneurs who deliver innovative solutions and demonstrate tangible returns to stakeholders, thereby enhancing people's lives.

Kestria Insights