NPO's Neither Panicked Nor Overly Prepared for the Generation Shift

Well, the results for last month’s NFP Pulse on the Generation Shift have been tallied and analysed...and I have to say I’m a little surprised at some of the results.

It seems that the demographic changes about to occur are definitely on the radar of the 95 NPO’s we surveyed...but it’s not an issue that is keeping non-profit leaders awake at night. When asked how concerned respondents were about this issue on a 1-7 scale with 7 being 'extremely concerned', the average response was a moderate 4.4.

What was really interesting is that most respondents acknowledge the issue will become critical within the next 5 (36%) or 10 years (28%). Despite this, very few (13%) claim their organizations are “extremely” or “very well prepared” for what’s coming down the pipe in the not-too-distant future.

Let’s take a step back and think about this for just a minute: Next year, the first Baby Boomers will hit the golden age of 65. This massive demographic bulge represents 26% of the American population (U.S. Census 2006) and 30% of the Canadian population (Statistics Canada 2006)...they are going to start leaving the workforce in growing numbers without enough new workers entering the labour force to fill their shoes.

The private sector is already scrambling to position themselves for the impending shift by creating strategies to appeal to, attract and retain quality personnel from generations X and Y and shifting business models to appeal to evolving customer demographics...so why haven’t non-profits (at least the ones we surveyed) adopted a similarly proactive approach?

It’s not too hard to see that all of the not-for-profit sector’s core stakeholder groups are extremely vulnerable to the impact of the demographic shift:

Staff and Leadership: Not only will good personnel and leadership become harder to find, but necessity will dictate that younger people with less tacit knowledge and experience will be put into roles of increased leadership and responsibility.

Membership: Maintaining and growing membership is already a core challenge for many non-profits. Not only will this be exacerbated because of membership losses due to aging, they will also have to battle it out to attract the comparatively smaller number of younger members needed to ensure the organization’s survival into the future.

Volunteers and Donors: As with members, there is and will continue to be a shrinking number of volunteers and donors relative to the organizations in need of their support. Volunteers and donors will also contribute in different ways than their predecessors.

Now, I’m the first to take my hat off and acknowledge that non-profit leaders are extremely busy people, many who struggle to cram 30 hours of work (or more) into a 24 hour day. Staff, volunteer and funding shortages are the ‘norm’ for many NPO’s, meaning they often need to prioritize which of the many “critical” issues to focus their already-stretched resources on.

Whether it is a current priority or not, what is clear is that demographics are becoming a big issue. Non-profits are going to have to be ready to change in a number of different ways, ranging from how they communicate and appeal to younger demographics as well as to evolving programs, services and volunteer opportunities to fit the needs, values and priorities of their evolving stakeholder base.

In some cases, it isn’t too unrealistic to predict that organizations may have to evolve their very mission, vision and/or structure if they are to continue to fit stakeholder needs in terms of value and meaning in the years to come.

So, why wait for the crisis to hit? Given the expected timeframe predicted by survey participants if for this issue to become critical within the next 5 or 10 years, perhaps now is the time for non-profits who haven’t already done so to put this issue on the agenda for their next strategic plan.

Am I right when I suggest that the reason why non-profits aren't dealing with this issue is because they are busy dealing with other priorities? What is your experience in terms of concern and preparedness with this impending issue? Is it a priority for your non-profit? 

This is the first in a series of blog posts reflecting on the results of the Association Resource Centre's second edition of the Not-for-Profit Pulse, which highlights the level of concern and preparedness of not-for-profit organizations relative to the impending generation shift. The sample for this survey comprises a total of 95 Canadian not-for-profit organizations with representation from industry/trade, professional, charity and special interest groups. It is important to note that the results of this survey reflect the responses from those surveyed only and are not necessarily representative of the entire not-for-profit sector.