How to Become a Nonprofit Manager – Education & Experience

Most business managers lead and run for-profit companies. These are organizations whose sole or primary purpose is to make money. That’s not a bad thing! But suppose you have a different career trajectory in mind. In that case, you need to know how to become a nonprofit manager instead.

Nonprofit managers have different objectives but can still make excellent salaries throughout their careers. Today, let’s break down how to become a nonprofit manager step-by-step, as well as explore what a nonprofit manager is and what they do for their organizations.

Article Navigation: What is a Nonprofit? | What Does a Manager of a Nonprofit Do? | How to Become a Nonprofit Manager | Education | Certifications & Licenses | Nonprofit Manager Career Path | Professional Organizations, Associations, & Resources | FAQs | Start Your Career Today!

What is a Nonprofit?

A nonprofit is any organization with a primary purpose of doing something other than making money. Note that this does not mean a nonprofit organization or company doesn’t make money. In fact, most nonprofit organizations do turn a “profit” by bringing in more money than they use for their yearly expenditures.

The difference between nonprofit and for-profit organizations is the overall objective. The point of a for-profit company, like a clothing manufacturer, is to make money. The goal of a nonprofit organization, like a charity, is to do good by collecting donations and providing that money to underfunded groups or communities or using the money to give people essential supplies, like clothes, food, shelter, etc.

Nonprofit organizations can take a wide range of forms. According to the National Council on Nonprofits, there are approximately 1.3 million charitable nonprofits in the US. Other standard types of nonprofit organizations include:

• Hospitals
• Chambers of commerce
• Daycare centers
• Credit unions
• Private foundations
• Fraternal societies
• Labor unions
• Civic leagues
• Sports and recreation clubs

The IRS recognizes 30 different types of nonprofit organizations at the federal level. Not every nonprofit organization is fully exempt from state or federal taxes. Still, every nonprofit organization does benefit from some tax exemptions or reductions.

What Does a Manager of a Nonprofit Do?

A nonprofit manager is an executive, leader, director, or organizer of a nonprofit institution. Depending on their level of responsibility, a nonprofit manager may lead the organization and may have even been a founder. A nonprofit manager may alternatively lead a department or specific effort with any organization.

For instance, a nonprofit manager may work for a nationwide charity. Rather than running the whole company, they manage the donation collection efforts for that organization.

They have many of the same duties and responsibilities as the manager of a for-profit company. Depending on their exact job description, a nonprofit manager may:

• Hire employees or find volunteers for charity drives, donation collections, and other efforts
• Organize reports for the nonprofit organization, especially for tax preparation or filing purposes
• Reach out to donors personally, especially if the donors are wealthy
• Make business decisions for the health of the nonprofit so it can better achieve its goals

Nonprofit Manager Job Description

Nonprofit managers can have many different job descriptions, as touched on earlier. But at their core, all nonprofit managers lead, manage, or help direct nonprofit companies. The goal is not to make money but to advance some goal or advocacy effort, such as charity, promoting a political cause, providing support to community members, and more.

What Skills Do You Need to Be a Nonprofit Manager?

To be a nonprofit manager, you usually need similar skills as a successful for-profit company manager. Generally, it would help if you had good business sense and a head for numbers. These qualities will help you make the best decisions for your nonprofit company and prevent your nonprofit from having monetary troubles.

To be a nonprofit manager, you also need to be an effective leader in the workforce. Nonprofit managers must often acquire and manage groups of employees or volunteers. In the latter case, good nonprofit managers can successfully inspire and lead volunteers even if those volunteers don’t make any money.

Stellar nonprofit managers usually also have good marketing and communication skills. The best nonprofit managers can acquire new donors by speaking to them personally or directing marketing efforts to make the nonprofit organization seem more attractive.

Nonprofit Manager Demographics

Nonprofit managers have interesting demographic trends. For example, approximately 65.2% of all nonprofit managers are women, while the remaining 34.8% are men.

There’s also a notable gender pay gap for nonprofit managers, with men earning around $107,000 on average and women earning nearly $94,000 on average. Women have gradually increased their majority status as nonprofit managers over time, though the shift has been very slight.

In addition, most nonprofit managers are white, comprising 72.8% of all of these professionals. Black or African-American individuals comprise 10.4% of nonprofit managers, followed by Hispanic or Latino managers at 10.1%.

How to Become a Nonprofit Manager

Becoming a nonprofit manager is relatively straightforward, though there are multiple ways to acquire management positions at a charity or fundraising organization:

1. Earn a Degree
2. Get Management Experience
3. Network and Search for Opportunities
4. Apply to Positions

Step 1 – Earn a Degree

To begin, you’ll need to acquire a degree in business or a related subject. The gold standard for a nonprofit manager degree is an MBA or Master of Business Administration. MBA degrees are highly valued by for-profit companies as well as nonprofit organizations. That’s because MBA degrees teach you a wide range of business-related and management skills. They include how to:

• Start and run a company
• Create a mission statement
• Draw the right people for your company
• Be an effective leader for organization volunteers or employees
• Look at company finances and make the right decisions
• Forecast market conditions or shifts

However, you can theoretically become a nonprofit leader with just a bachelor's in nonprofit management or a related subject. But a master’s degree will be the best choice if you want to acquire a position at a well-known nonprofit agency.

Step 1A – Get Experience Without a Degree

Alternatively, you can jump into management and acquire experience without a degree. In business management, experience is more important than a degree or another credential. For instance, if you work for the Red Cross in a management context, you’ll be more qualified than a fresh graduate with an MBA with no experience in the real world.

However, getting experience without a degree can be difficult because many nonprofit organizations won’t hire you without this credential. In many cases, nonprofit managers without degrees only earn these positions by founding their own companies or starting with the company early at an entry-level position.

Step 2 – Get Management Experience

To become a nonprofit manager, you’ll need management experience at for-profit companies or nonprofit organizations. The more management experience you can get, the better you’ll be prepared to tackle significant nonprofit challenges in the future.

Step 3 – Network and Search for Opportunities

After you have a degree and have acquired a certain amount of management experience (either as a department manager or a higher company executive), you’ll need to network and search for available management opportunities. Having an extensive range of professional contacts and networking associates is critical. Many nonprofit organizations only hire individuals they trust or are recommended by people they trust.

That’s because nonprofit organizations are concerned, first and foremost, with advancing their core causes, not making a profit. To work for many nonprofit companies or agencies, you’ll need to prove that you believe in what they stand for and commit yourself to the cause.

Step 4 – Apply to Positions

Lastly, you should apply to open positions. A degree from an accredited institution may make you a more competitive candidate for specific jobs.

Education

If you want to become a nonprofit manager, you need to have at least some education in this industry. But it can be challenging for new students to know just what education they should pursue.

Bachelor’s Degrees

Bachelor’s degrees in business, business administration, finance, communications, and similar subjects are the first stepping stones toward your ideal educational credential. Many bachelor’s degrees can be taken online or part-time, enabling you to work a job and get valuable management experience while completing your degree.

However, make sure that your chosen bachelor’s degree program is from an accredited university. Accreditation is essential when applying for management positions. Many companies, both nonprofit and for-profit, will not hire you if your degree is from a nonaccredited institution.

Accreditation proves that your degree is comprehensive and challenging and comes from an institution that uses up-to-date, accurate educational information. Look for certification from organizations like regional accreditation institutions such as the HLC, SACSCOC, or MSCHE.

Master’s Degrees

Master’s degrees in business, business administration, finance, and so on are excellent if you want to pursue competitive nonprofit manager jobs. Graduate degrees are desirable because they show that you have more experience both in academia and in the business workforce. In addition, master’s degrees allow you to specialize your education in one area or another, like hiring volunteers, managing company finances, etc.

Again, master’s degrees are also available online. You can find excellent online MBA programs, for example, that allow you to work a job and complete your degree 100% remotely. If you want to become the best nonprofit manager possible, a master’s in business or business-related subjects is the way to go.

Is Education Important for a Nonprofit Manager?

Yes. Nonprofit managers need to know the basics of running a large organization if they want to succeed. Real-world experience is essential, but before you’ll be trusted to run an organization, you need to know how to do things like:

• Create a balance sheet
• Interview a candidate for an open job or volunteer position
• Lead a team to complete a complex goal

Professional educational programs can give you that information. While becoming a nonprofit manager without a specific degree is possible, you’ll be better off with a focused degree from an accredited institution.

Certifications & Licenses

Just like having a degree isn’t strictly necessary to be a nonprofit manager, neither are certificates and licenses. However, various certifications and licenses exist for nonprofit managers or future business executives.

These can be advantageous certifications to pursue during and after acquiring a bachelor’s degree in business or a related subject. The proper certificate can help you specialize your skills or allow you to qualify to manage a specific type of company, like a nonprofit.

One example is Washington University in St. Louis, which offers an Advanced Certificate in Nonprofit Management. This certificate program provides specialized knowledge and skills to help you successfully build and run nonprofit organizations. The program covers topics like how to manage volunteers and professionals, strategic planning for nonprofits, and more.

Or you might consider a Nonprofit Management Certificate from the University of Colorado – Denver. This certificate includes coursework covering managing nonprofit organizations, practicing cultural competence, pursuing diversity, and developing nonprofit financial resources (such as donation fund streams).

While nonprofit certifications and licenses aren’t required, they can bolster your career prospects and make your resume more competitive. Consider pursuing a nonprofit certification or license if you already have an MBA or bachelor’s degree in business but want to become a more attractive candidate for open management positions.

Alternatively, a nonprofit management certificate or license could be an excellent credential to pursue if you already have a degree in general business or business administration without a concentration in nonprofits. The proper certificate will show that you know the specific business knowledge for this niche.

Nonprofit Manager Career Path

Like for-profit company managers, nonprofit managers can have diverse career paths. For example, you might be a nonprofit manager for one company and then transfer to a new company for better pay or to support a mission you are more passionate about. Let’s examine the career path for nonprofit managers.

Career

As a nonprofit manager, your career can take several different forms. You may not begin as a nonprofit manager, in fact. Nonprofits usually look for a good amount of experience and personal connections in their managers to prevent corruption and ensure their missions are fulfilled. To that end, you might first work as a for-profit company manager.

However, you may also work for many different nonprofit companies throughout your career. As you build up skills and experience, you can put that experience on your resume, qualifying you for higher-paying positions for more important nonprofit companies.

Jobs

In terms of specific jobs, you may acquire a title like a public relations and fundraising manager. According to the Bureau of Labor Statistics, these individuals earn high salaries of around $119,860 annually. These professionals usually have five or more years of experience in a related occupation. Importantly, nonprofit public relations and fundraising manager positions are expected to become more common by 8% over the next few years.

You might alternatively earn a position as a financial manager. Financial managers earn $131,710 per year on average. These individuals may not lead nonprofit organizations or companies but instead, be in charge of financial departments. They usually have degrees in accounting or financing alongside management or business analytics certificates or concentrations.

As a manager for a nonprofit company, you may have any number of job titles and responsibilities. Suppose you found or led a company as a chief executive officer. In that case, you can expect your salary to be higher and your obligations to be more numerous.

Salary

As mentioned above, many nonprofit managers make reasonable or even high salaries. However, nonprofit manager salary is (usually) contingent on the monetary status of their employing organizations.

Technically, nonprofit managers must pay themselves “reasonable” salaries rather than high salaries far beyond what could be considered normal. Of course, what constitutes reasonable is up for debate. Therefore, many nonprofit managers who work for popular or successful nonprofits earn over six figures yearly.

But you may earn significantly less than this, especially if you:

• Work for a lesser-known or local nonprofit that doesn’t bring in as much money.
• Found your own nonprofit organization. Don’t expect to make much money from this job in the first few years. You may need to have another job to make ends meet.

Generally, you’ll earn more money as a nonprofit manager as you gain experience and work for more well-known organizations.

Projected Growth

The BLS indicates that public relations and fundraising managers will increase in popularity soon. There should be about 9,100 new openings for these management professionals annually through 2031.

But it’s impossible to say what the real growth for nonprofit managers will be. Hundreds of thousands of major nonprofit organizations exist throughout the US, and more crop up yearly. Since the most successful nonprofit managers have experienced business management personnel leading them, there will likely always be some growth in this sector.

Career Advancement

As a nonprofit manager, you may advance by working for more popular nonprofit organizations. For instance, you might start at a small nonprofit organization that runs charity drives for your local city. Once you have enough experience, you can apply for a nonprofit organization in a larger metropolitan area or even a national nonprofit.

Most nonprofit managers use their career experience to leverage job opportunities with higher pay and a chance to do even greater good with more prominent organizations.

Related Careers

You don’t have to stay in this field as a nonprofit manager forever. Your experience will allow you to take any number of management positions for for-profit companies. Just as you can move from a for-profit to a nonprofit company as a manager, you can also take the reverse path.

Business experience is valuable no matter what. The more experience you gain, the more industries you may be able to enter as a manager. In addition, you can pursue different certifications or licenses to strengthen or broaden your skill set over time.

Professional Organizations, Associations, & Resources

Becoming a nonprofit manager can take a long time, and acquiring the best positions means networking with fellow professionals. To that end, you might benefit from checking out these professional organizations:

• Alliance for Nonprofit Management
• American Society of Association Executives
• Association of Fundraising Professionals

FAQs

How do nonprofit owners make money?

Nonprofit owners make money by taking a reasonable salary from the money their organizations bring in. For instance, if a nonprofit company makes over $1 million in a year, the nonprofit manager may take a salary of $50,000 or more to compensate them for their services.

What does nonprofit management mean?

Nonprofit management means managing, organizing, leading, or directing a nonprofit organization, like a charity.

What is the title of a leader of a nonprofit?

Nonprofit leaders can have many different titles, such as CEO (chief executive officer), director, or something else.

What makes a good nonprofit manager?

A good nonprofit manager should have excellent business sense. They should also be driven and committed to their organization’s goals. Morals and ethics are also vital, so they don’t take more money than what is reasonable for their salary.

Start Your Career Today!

A nonprofit manager is an executive professional who runs and organizes nonprofit companies. The steps to becoming a nonprofit manager are similar to becoming a manager of any other company in any other industry: get a degree, acquire experience, and maneuver your way up the corporate ladder.

Fortunately, you can start your nonprofit manager career with the right online degree program. GetEducated.com can help you find the perfect online university for your needs. Check out our resources today!