If you have been a board member of a profit seeking organisation, you will find that there are some mindset changes you will need to make when you join a not-for-profit (NFP).

On the surface many things are similar.  Both organisations set and work towards goals, have financial and strategic responsibilities and standards they must achieve or maintain.

The differences are often not visible until you get to know the NFP sector.

The first difference lies in public expectation.  When you work with a not for profit organisation, the public expects that most money goes to the cause you are supporting. They often forget that there is an infrastructure behind the NFP just as there is a for profit business.  Who should be paid and how much?  How do you define “most money”?

The biggest struggle involves money, or lack of it.  Charities and NFP’s manage in a world where money is hard to come by so that means that supplies might be short, or opportunities have to be passed up because there is no money left in the budget to allow you to take advantage of them. It’s a new treasurer’s nightmare.

Most NFPs rely on funding for their income. The arrival and guidelines of each grant dictates the speed and conditions under which the money can be used. In the world of profit, the only conditions are limitations of law or those you impose on yourself.

Working as a board member for a NFP will seem like a slow process after the world of profit.  In business, profits come to those who take quick action.  For NFPs, money comes slowly and it comes to those who have completed the right reports and met specific deadlines.

The final hurdle is in learning to work with volunteers.  When people are being paid they are under pressure to perform.  While volunteers and volunteer board members are working because they believe in and support the cause, they are unpaid.  They are likely to be working with a much higher commitment level to the job but at quite a different pace.

Joining the board of a not for profit will be challenging and frustrating, but it will also be exciting, rewarding and a far more hands-on experience than you will have in the world of profit.

If you are moving from profit to not for profit, take the time to absorb the new culture.  It’s possible you will really enjoy it.