Sector discussion meeting 18th March 2024

Held on Monday 18th March 2024 at 16:30 CET via MSTeams conference call, members of the Association meet to hold a Best Practices meeting discussing the Education, Nonprofit, and Charity sector, with the participation of 9 members.

• The goal of these meetings is to exchange information, help each other, and share what we are currently working on to see if we can collaborate. To strengthen relationships between members, it is important to have API and each other in mind while working day to day.
• Presentation conducted by Ken Mc Govern and Sarah Thewlis. They both have a lot of experience in the sector.
• We start discussing the difference between not-for-profit and commercial clients. Ken Mc Govern has about ten years of experience in the sector. He would divide not-for-profit organizations into 3 categories:
  • Universities and Colleges
  • Medical facilities or healthcare providers
  • Charitable causes
• The first difference is the source of income. Universities and medical facilities have a revenue stream of people paying (patients or clients), and donations would be a secondary source of income. Charitable causes rely on donations as their main source of income. Soliciting donations is described in position roles as “development”. The other source of income is non-profit foundations. Individuals and corporations can make donations to foundations, which will then distribute the money to charities.
• The most distinctive aspect is that non-profits are mission-driven. Their focus is delivering that service to whoever their customers might be. Profit is a secondary driving force. They do need to generate revenue, but they are not focused on growing the bottom line.
• Sarah Thewlis shares that Governance is also a differentiating factor. In non-profits governance structures are complex and the range of people involved are not the typical executives. When looking at candidates, it is helpful to see if they will add time or treasure. Will they put in their time and offer a skillset, or will they donate money to the organization? Company culture and values also need to be in alignment between the candidate and the organization.
• When talking about candidates, Ken Mc Govern shares that they can come from the corporate or the non-profit world, depending on what you are looking for. The pay is less than in the corporate world. Candidates need to understand that this is not a pursuit of money, there has to be an altruistic aim. Some candidates fully understand that, or have a lot of experience in the non-profit world. Candidates who come from the corporate world sometimes don’t understand that.
• Some personality traits are needed: altruism, empathy, and a flexible and sophisticated management style. They have to work within the organization and outside the organization.
• Sarah Thewlis talks about the charitable sector. Specifically within the UK, you have to be registered to be a charity. The market size is not massive in comparison with some of the corporates. The range of salaries is very different. The highest paid would be in the science and medical areas. Usually, you work at a national level rather than a regional level. In the US you also need to have a charitable status, the financials, the executives, and their compensation are information that tends to be accessible.
• Ken Mc Govern got involved through a client he already had who sat on the board of a non-profit organization. Networking through current clients and asking if they sit on any board is a useful way to get into the sector. In terms of fees, he usually charges 30% but for charities, it’s 25%.
• Sarah Thewlis works on a fixed fee, not a percentage. It’s cleaner and shows transparency (not pushing more expensive candidates).
• Nitin from AdAstra shares how non-profit organizations in India work. He started his career in the UN. Jayanthi sits on the board of a charity for physically disabled people. They help with education and also with placement in the workplace. In India, there are some challenges when getting candidates for non-profit organizations. Budgets, passion for the organizations, and a unique blend of leadership, fundraising, and skillset, as well as a cultural fit. Regulatory affairs are also complicated.
• Vittorio Villa also has experience in the sector. Villa & Partners did a search for a CFO for a non-profit foundation.