That’s because directors and CEOs often come from the baby boomer generation. And, like the rest of society, those people are starting to retire.
“”There are 77 million baby boomers who make up half of the workforce,” said Ann O’Brien, director of professional education for the University of Utah. “There are only 38 million Generation Xers.”
And two-thirds of employees in that generation will be leaving/retiring in less than nine years, she said.
O’Brien recently conducted research on nonprofits, which was shared with the Davis County Community of Promise during its monthly meeting at the Davis Business Alliance building, here.
“Research shows that at the turn of the 20th Century (1900), 1 percent of jobs were in nonprofits,” with that number mushrooming in the early years of the 21st Century, she said.
“That’s (nonprofits) pretty unique to the U.S. Usually, government provides a lot of those services” in other countries, O’Brien said.
But in the case of the U.S., it’s anticipated that the government could be cutting services in some areas.
“Governments will continue to shrink, while nonprofits will grow,” she said.
“Nine percent (of leading staff) are already leaving, and two-thirds plan to leave in the next five years,” O’Brien continued.
“Less than 35 percent of nonprofits have succession plans in place, with more than 640,000 nonprofit managers needed in the next decade.”
Attendees to the Community of Promise are largely from nonprofits, ranging from education-related agencies to organizations that assist those in need financially.
“Many people fell into this field because they have a passion, and grew into” management positions, O’Brien said.
“Most nonprofit managers said their most critical training need is in raising money,” she said. “In bad economic times, they said they will try to rein in costs.”
But nonprofits are losing institutional knowledge with retirements, and need to remedy what is often an “unprepared pipeline,” O’Brien said.
Based on her research, one in five directors are enrolled in progressive education programs. The University of Utah offers nonprofit education via its nonprofit Masters of Public Administration program, ranked among the top five percent in the nation, she said.