Nonprofit vs. Commercial

The nonprofit sector is often construed as being very different from the world of commercial, for-profit enterprises. While these entities are quite different in certain foundational ways, they look pretty similar on a functional level.

Habitat For Humanity identifies six core ways that nonprofit organizations differ from profit-driven ones: purpose, funding, target, audience, management, organizational culture, and taxation. Most of these components affect the mission, values, and structure of the organization and not the actual operations– marketing departments still need to develop strategic plans, accounting teams still need to accurately track financials, HR still needs to process payroll and conduct performance management, and so on. 

What does this mean for someone currently evaluating the viability of career options and job opportunities in both industries?

For professional individuals working as part of the Technostructure (HR, accounting, marketing, etc.), job roles and responsibilities in a nonprofit organization will look very similar to jobs in a for-profit company. Volunteers and staff working as the Operating Core of a nonprofit organization will see a little more of a variance in their roles based on the specific industry (e.g., staff will comprise legal analysts for an advocacy group, hospitality workers for a homeless shelter, nurses for a medical clinic, etc.), but their jobs will still look fairly similar.

Perhaps the biggest difference is in the upper leadership of the organization. Nonprofit management deals with a totally different set of issues and strategic concerns. Funding comes (at least in part) from grants and donors instead of solely customers, core operations are often carried out by volunteers, duties and obligations to stakeholders are different, and the list goes on an on.

If you are unsure which sector is a better fit for you, first consider your field. If your expertise is in marketing, human resources, accounting, public relations, or other professional support, you will likely perform similarly in either setting; reversely, if you are looking for a higher level leadership position, it's best to make sure your goals and competencies are aligned to the specific industry and organizational objectives. Ultimately, it comes down to each specific entity and what it stands for. If the core values are aligned with yours, you are much more likely to step into a role that is fulfilling and fitting.

-JS