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Profit is personal in non-profit jobs

More executives are forgoing corporate salaries and perks for less lucrative but more self-satisfying not-for-profit roles, ANN KERR writes

Courtesy The Globe & Mail

by Ann Kerr

Wednesday, May 12, 2004 - The Globe & Mail, Page C12

Paul Alofs has had the kind of career that other business executives might envy.

Now 48, he's already held top positions at HMV Canada Ltd., Walt Disney Co. and MP3.com in Los Angeles. Mr. Alofs even got out of tech at the right time, leaving MP3.com and selling his stock in 1999, before the dot-com frenzy fizzled. With his windfall, he did some private investing and considered his next business move.

Then, Mr. Alof's mother was diagnosed with breast cancer and his personal and professional lives changed completely.

Mr. Alofs returned with his family to Canada and helped look after his mother until her death in 2002. After that, he knew exactly what he wanted to do and, in September, 2003, he became president and chief executive officer of The Princess Margaret Hospital Foundation in Toronto, a leading fundraiser for cancer care and research.

"My mother's illness was a life-altering experience," Mr. Alofs says. "When I thought about returning to work full-time, I looked at a bunch of things in the private sector, but decided I would only do something if my heart was in it."

Mr. Alofs is a prominent example of what many in executive search circles see as an emerging trend among the business elite. They are forgoing big salaries and the perks of corporate life for less lucrative but more self-satisfying roles in the non-profit and voluntary sectors.

Executives who did well in recent years may feel that they can now afford to put their personal values first. In the United States, where corporate compensation is higher, even more executives are departing corner offices to take up not-for-profit positions, he says.

But even mid-level managers, without a huge nest egg to cushion the shortfall, are looking to switch, says Ann Armstrong, a professor at the University of Toronto's Rotman School of Management, who teaches organizational behaviour and non-profit consulting.

In the past year, she's been contacted by numerous professionals, largely in their 30s and 40s, from various sectors, seeking advice on how to land non-profit jobs.

"We're seeing more executives, and some earlier in their careers, interested in moving to the not-for-profit sector," says Anne Brayley, a partner at international recruiting firm Heidrick & Struggles Canada Inc. in Toronto. "Partly they want to do something new but they also want to give something back."

Dave Wolfenden has followed his heart, though it's been a circuitous route.

Twenty years ago, he was an instructor with Outward Bound, the charitable non-profit organization that runs outdoor-based personal development programs. After that, he worked as a teacher, management consultant and in real-estate management for DMB Inc. in Scottsdale, Ariz.

In January, Mr. Wolfenden, 44, returned full-time to his non-profit roots at Outward Bound Canada in Burk's Falls, Ont., about 250 kilometres north of Toronto, this time as executive director.

"I was volunteering on a few non-profit boards in Scottsdale and it reminded me how much this kind of work means to me," he says. "There's more balance between the meaning and the money equation."

The search for personal satisfaction drives most people who want to change paths, says Anne Fawcett, managing partner of Caldwell Partners International Inc. in Toronto. Some clients are totally disillusioned with corporate life.

"The last decade has been trying, with the technology train wreck and the recession, and a lot of careers got dislocated," she says.

Michael Howlett agrees. "You see some senior executives, particularly those who've been passed over for the top job, the adrenalin stops and the fatigue sets in. They get into this world and it regenerates them," says Mr. Howlett, who became president and CEO of the Canadian Diabetes Association in Toronto just over a year ago, after a long business career.

Making the switch may be due to a personal crisis, corporate burn-out or a mid-life crisis but it certainly doesn't seem to be for the money. Salaries for major not-for-profit jobs have risen 10 to 20 per cent in the past five years, Ms. Brayley says, but that still doesn't compare with the private sector. Typically, non-profits don't offer the same performance bonuses that companies do, either. Many don't pay anything extra at all, Ms. Fawcett says.

The top job at World Wildlife Fund Canada pays $200,000.

That's good by not-for-profit standards but no great shakes in the for-profit arena.

Still, Michael de Pencier, chairman of the fund's national council, is hoping to lure a business hotshot with an altruistic streak to replace outgoing president Monte Hummel. "We'd like to hear from an experienced business person who's thinking, 'I'd rather save Canada's lakes and rivers and forests with my energy than make another half million bucks this year.' "

Mr. de Pencier says that, facing government funding cutbacks, stiff fundraising competition and increasingly complex operating structures, many non-profits are actively on the lookout for corporate veterans.

And demand for senior executives will continue to grow because there isn't enough supply, says Ted Garrard, a vice-president on the board of the Canadian Centre for Philanthropy in Toronto. "There's been a proliferation in the number of charities and the need to raise funding privately has exploded in the last decade. There's a gap in the kind of leadership we need to draw on," he says.

Financial, marketing and leadership skills are the most valuable contributions private-sector pros can bring to the table, along with a clear vision of where to take the organization, Mr. Alofs says.

Under his tenure, the Princess Margaret foundation, with several Canadian partners, is pursuing a major research initiative that will have international implications if it pans out, he says.

A résumé with combined private- and public-sector experience is an especially hot property. Georgina Steinsky Schwartz, who took over as CEO of the Canadian Centre for Philanthropy in mid-April, has served in senior roles at Bell Canada, Manulife Financial Corp., Bata Ltd. and in the federal government, including a stint as deputy minister at the Department of Supply and Services in the late 1980s, now part of the Department of Public Works and Government Services.

The centre for philanthropy and the Coalition of National Voluntary Organizations are merging into a new organization and Ms. Steinsky Schwartz's experience will be invaluable, Mr. Garrard says. "She has a great network with excellent contacts in all areas and that's a major advantage," he adds.

But corporate execs shouldn't necessarily assume they'll be welcomed with open arms by a grateful non-profit, says Robin Cardozo, CEO of the Ontario Trillium Foundation, which grants money raised by the province's casinos to not-for-profit groups.

In many cases, the job is more difficult, because there are so many more stakeholders to juggle, from program users to donors, volunteers and government, he adds. Being a successful business executive may not be enough. He tells people to make a five-year plan to get there and serve on some non-profit boards first.

Before taking the CEO job at the Canadian Diabetes Association, he had concerns about whether it would be a good fit, says Mr. Howlett, whose background includes co-owning The Preston Ltd. Group of Cos., an office furniture, warehousing and distribution enterprise, as well as running his own consulting practice. His clients included former tennis star Boris Becker, who sought advice on how best to market his name.

In part, Mr. Howlett worried he'd go in, turn things around in a few months and be ready to move on. In fact, he's found the job a continuing challenge and learning experience.

In the past year, Mr. Howlett brought together the departments of the organization, which had been operating as silos, hired two new vice-presidents to beef up marketing and fundraising, and helped to avert a financial problem. "Everything we do now has to have accountability," he says.

But Mr. Howlett's gung-ho business style meant a period of adjustment for everyone, including the board of directors, he concedes.

"After the first couple of months, I think there were people who thought, 'My God, what have we done?' " he says.

Although many of the skills required in the private and non-profit worlds are the same, the cultures can be quite different, Mr. Alofs says.

Chief among the differences is working with volunteers, who choose to be there, as opposed to employees, who are paid to. Patience is a major requirement, he adds.

As well, the pace for getting changes enacted is slower, notes Mr. Howlett. But anyone who thinks that taking a non-profit position is a way of easing into retirement is badly mistaken, he warns. In his first year, he only had four weekends off. Mr. Wolfenden says he works twice as hard for Outward Bound as he did in his for-profit days.

Maybe the hardest part of leaving the big-bucks business community behind is explaining yourself to those still in it. Mr. Alofs says he has friends who just shake their heads in disbelief.

"One even said to me, 'If you really want to help, why don't you go make a lot of money and give some to Princess Margaret?' He just didn't get it," Mr. Alofs says.

What his friend didn't understand, says Mr. Alofs, is that working to help treat and cure cancer is more than just a career move. It's a whole life decision.

How to travel the road to personal fulfilment

A passion for the cause is the first and most fundamental requirement for leading a not-for-profit organization. But it takes more than good intentions to be as successful in helping to cure a disease or protect the environment or support social change as it is to run a company. as running a company. Here are suggestions to ease the transition to the non-profit world:

Test the territory first. "Boards are a great place to experiment with what really interests you," says Dave Wolfenden, executive director of Outward Bound Canada, who served on the boards of three non-profits before taking on his full-time position.

Check out on-line resources. BoardMatch.org is a Web-based organization that puts together people interested in volunteering with not-for-profit boards requiring specific skills, says Ann Armstrong, a professor at the University of Toronto's Rotman School of Management. "Based on the feedback I've received, it's an effective route to explore where you might like to work and also build a network in the non-profit world."

Other worthy sites: http://www.charityvillage.com, which lists board positions available under its volunteers section, and http://www.nonprofitscan.ca, managed by the Canadian Centre for Philanthropy., to learn about current issues in the non-profit sector.

Set a five-year plan to make your move, says Robin Cardozo, CEO of the Ontario Trillium Foundation., which grants money to not-for-profit groups. In the meantime, he adds get experience working with volunteers, in program development and on major fundraising projects.

Be clear about why you want to make the change. If you're too preoccupied with the cut in pay you'd have to take, for instance, it's probably not a good idea to switch, to a non-profit, Mr. Wolfenden says. "I've been an executive coach and I'd be listening carefully to what you see as potential barriers."

Go in willing to learn. "I thought I'd turn things around in no time but I ended up being the student," "I've benefited from the team here as much as they've benefited from me," says Michael Howlett, president and CEO of the Canadian Diabetes Association.

Remember the three P's, says Paul Alofs, president and CEO of The Princess Margaret Hospital Foundation. "Passion, persistence and patience. Passion you start with. Persistence because it's very challenging competing for fundraising dollars and promoting your cause. Patience because things can move at a different pace and you're relying on volunteers, not only employees."

Be prepared to work harder than you ever have. For one thing, volunteers are generally available to meet only early in the morning, in the evening or on weekends, says Mr. Cardozo. Adds Mr. Alofs: "Your job never ends, you can never do enough. The pressures go beyond earnings per share." But so do the rewards.

Ann Kerr

Column courtesy The Globe & Mail © worldwide 2004

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