By the
Mind Tools
Editorial Team

Managing in Nonprofit Organizations

Understanding the Not-For-Profit Environment

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When we talk about organizations, most of us think of either for-profit companies or public sector organizations. But, at some point in our work or personal lives, many of us are also involved in nonprofit organizations. In fact, nonprofits are one of the fastest-growing sectors today (in terms of the number of people working in the sector).

Nonprofits – also known as not-for-profits, charities, and social sector organizations – are highly professional entities. As such, managers working in this sector need all of the same skills as their counterparts in the for-profit and public sectors. But to succeed, nonprofit managers also need other skills, and they need a clear understanding of the very specific nature of nonprofit organizations.

Do you know how leadership in a nonprofit environment differs from the for-profit world? We'll take you through some of a nonprofit's unique features, and we'll look at the particular requirements of managers in this sector.

Understanding the Nonprofit Environment

Filling Gaps

By their very nature, nonprofit organizations usually fill gaps in services provided by public sector organizations. After all, if the government did everything that was needed in the nonprofit's area of interest, the nonprofit wouldn't need to exist.

This makes nonprofits different from for-profit companies and public sector organizations in two key ways:...

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