Nonprofits face leadership shortage

Nonprofits are facing a potential labor and leadership shortfall, a new report says.

The report, titled “Investing in Leadership: A Grantmaker’s Framework for Understanding Nonprofit Leadership Development,” includes information and analysis of leadership development and organizational performance.

Published by Grantmakers for Effective Organizations, based in San Francisco, the report also discusses how grantmakers can become effective nonprofit leadership development supporters.

Annual growth of the American workforce has declined by more than half since the 1970s to 1.1 percent, and is expected to fall to 0.4 percent between 2010 and 2020, creating difficulties for nonprofit organizations, the report says.

It also says that while businesses spent $6.5 billion on executive training in 2004, nonprofits in general have not placed similar emphasis on executive leadership development.

The predicted labor shortage and retirements call attention to a need for investment in nonprofit leadership development, the report says.

The Eugene and Agnes E. Meyer Foundation in Washington, D.C., funded the report, and hopes it will lead to a collective effort to strengthen leadership in the nonprofit sector, said Julie Rogers, its president.

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