Returning the favour
Sunday December 14 2008
With economic hard times affecting all organisations in Ireland, how is the non-profit sector coping?
The voluntary sector here is starting to feel the pinch of the current economic volatility in terms of garnering funding, primarily from the State, and, secondly, from fundraising drives and appeals. In the midst of the upheaval, however, there has been an increase in the number of volunteers who want to donate some time to social causes.
Some quarters are also reporting a trend whereby those with experience at the top echelons of management, coupled with middle management, are being drawn to work for voluntary organisations. They are undoubtedly enticed by the possibility of a challenging and rewarding career, as well as the capacity to apply their commercial acumen.
John Kelly, director of 2into3, a firm that provides management consulting and recruitment services to non-profit organisations and philanthropists, acknowledges that while challenges exist right now, there is also an increased demand for services from agencies that work in the spheres of homelessness and human services, in particular. This is triggering a need for those with strong business experience and leadership talent to turn their attention to the sector. In turn, he says it helps the non-profit arena transform and innovate in tandem with what the commercial sector is doing. This allows it to stay competitive and deliver a better return on fundraising efforts.
Brian O’Donnell is chief executive of the National Federation of Voluntary Bodies, an umbrella organisation for voluntary agencies that provide services to people with intellectual disabilities. He hasn’t witnessed a really big movement of people from the corporate world to the voluntary arena, but believes the sector wouldn’t be closed to it.
“In the voluntary sector, recruitment is open. There is some movement to that effect. People who are pursuing careers may well be attracted to voluntary organisations. It is a vibrant sector in which to develop a career.”
However, he says a skills deficit does not exist and the upskilling of existing employees from within, to ensure they are equipped to provide the necessary services, is a strong aspect of how voluntary organisations operate.
According to the Centre for Nonprofit Management (CNP) at Trinity College Dublin (TCD), the Irish non-profit sector contributes €2.5bn to the economy, and has over one million volunteers. It is estimated that there are about 24,000 voluntary organisations in Ireland, employing over 63,000 full- and part-time workers.
O’Donnell says the 1pc reduction in funding from the State in 2009 will make the climate very challenging. In relative terms, however, he says a 1pc cut is not too harsh.
“We’ve had a number of years where there’s been significant investment by the Government in the services, so it’s important we acknowledge that.”
Therefore, he says the emphasis must be on strengthening existing processes within the voluntary sector.
“We’re now in a situation where we’re consolidating and won’t be developing new services, but we will be trying to absorb the 1pc cut through efficiencies. We’re going to minimise the impact on the frontline through a more innovative use of the resources we have.”
Fresh thinking is key to this process of innovation. According to Kelly, the types of professionals needed in the voluntary sector, as it gradually morphs from being a volunteer-driven model to a brand-driven one, include fundraising experts, operations and finance directors, and strategic human-resource personnel. He says the cultivation of talent management, particularly from within the sector itself, is also very important.
And while salaries for management positions in the voluntary sector are in line with public-sector norms, Kelly says there are some challenges. “People can expect a decrease in salary if they move to the non-profit sector from the commercial world.”
However, he says such a drop can be counterbalanced by working for a cause that is challenging as a career move and offers enriched levels of job satisfaction, allowing people to apply commercial and management skills.
With the setting up of an independent regulatory body for charities on the horizon, increased regulatory burdens are also being placed on
non-profit organisations, forcing them to become more accountable. Therefore, positions such as operations and finance directors are starting to come to the fore.
O’Donnell welcomes the arrival of this body, as it will bring “clarity” to the sector. “In terms of fundraising, it will introduce national guidelines regarding what the appropriate models are,” he explains.
Ireland is also on the cusp of what Kelly calls the integration of wealth transfer and wealth planning. People who amassed new wealth in the tiger years want to give something back to society. This philanthropic approach has been well established in the US for many years, with Kelly anticipating that it will gradually come to fruition here as this new wealth matures.
In terms of education, the CNP at TCD recently launched Ireland’s first course in fundraising and philanthropy studies, in partnership with Indiana University, which has come as welcome news for fundraisers.
In conclusion, O’Donnell says the voluntary sector is always looking to attract talented, energetic people. “We’re trying to develop a person-centered approach – we’re moving from the old medical model to a social model of care. You can see the shift from institutional care to a more integrated situation, where people are supported in their communities. That’s a big reorientation of services. We’re taking an individualised approach.”
© Whitespace Ltd 2008
- Carmel Doyle
