6 Myths About CEOs Who Jump From For-Profits to Nonprofits

The following six myths about "bridgers," or executives who transition from for-profit to nonprofit organizations, are in need of debunking, according to A. Wayne Luke, managing partner of the nonprofit practice at executive search firm Witt/Kieffer.

The myths were listed in a blog post for Philanthropy News Digest penned by Mr. Luke.

1. The leap from for-profit to nonprofit is too wide for most for-profit executives. The two sectors are different, but not as much as they once were. "Out of necessity, the nonprofit world has adopted a more businesslike approach to fundraising, management and strategic planning. Donors no longer are willing to write a check simply because an organization has a compelling mission statement," wrote Mr. Luke.

Simultaneously, most experienced business leaders are familiar with nonprofit organizations. They may have served on a nonprofit board and their past employers likely had affiliations with charities and foundations through corporate social responsibility programs.

2. Bridgers don't thrive in cultures driven by mission. Any chance of this occurring should be halted by the time an executive gets a job offer. Cultural issues should be raised and dispensed with in the interviewing process, and the nonprofit's board or search committee must engage the candidate in candid conversations about mission, said Mr. Luke.

"Smart businesspeople usually get a handle on these challenges right away by asking themselves, 'What does it take to succeed here?' and making adjustments accordingly," said Mr. Luke. "If a bridger comes into a new job and says, 'Trust me…I've been in business a long time,' that's usually an indication the hiring committee did not properly size up the candidate."

3. Bridgers are looking to dabble or ease into retirement. "There may be some truth to this," wrote Mr. Luke. "What inevitably happens, however, is that once bridgers make the switch, they become so engaged in the mission of and challenges confronting their new organization that they work as hard as, or harder than, they ever did."

4. Salary is a deal-breaker. The difference between for-profit and nonprofit compensation is not as wide as it used to be, says Mr. Luke. For-profit pay may be 20 percent or 30 percent higher, whereas it would have been closer to 60 percent in the past.

"Indeed, the narrowing of this gap is one of the factors driving the bridger phenomenon," he wrote. "Does the corporate executive who switches sectors make less? Yes. Will he or she have to live on a bread-and-water diet? Hardly."

5. Most nonprofit organizations aren't ready for an outside change agent. Oftentimes, when a bridger joins a nonprofit and brings new ideas, the nonprofit's employees can surrender to fear of the unknown. This will solve itself over time, according to Mr. Luke. "These fears will fade, however, if the new leader is able to achieve some early successes — for example, convincing a major donor to increase his or her commitment, or using newly adopted metrics to demonstrate positive outcomes as a result of the organization's programs. Bridgers will be embraced as their ideas and suggestions begin to gain traction," he wrote.

6. Nonprofits can't recruit on a national level. "I know many bridgers who are more than willing to uproot themselves and move across country for a job that is meaningful and substantive," wrote Mr. Luke. He said nonprofits are in a position today "to leave no stone unturned in identifying and choosing potential leaders."

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