Revolutionizing the Nonprofit Sector with Project Management

When you picture a project manager, your mind probably envisions someone overseeing the construction of a gleaming new skyscraper or the development of the latest tech gadget. The clear objectives, detailed plans, and performance metrics that characterize these corporate projects make them a natural fit for traditional project management principles.

But what about initiatives where the end goal isn't a shiny new product, but rather "alleviating homelessness," "educating underprivileged youth," or "advocating for criminal justice reform"? Can the same rigorous project management approaches work just as well in the nonprofit realm?

As it turns out, the answer is a resounding yes. In fact, the nonprofit sector represents a vast, largely untapped opportunity for project management to drive meaningful, lasting impact on critical social issues.

The Nonprofit Powerhouse

The nonprofit sector in the United States is a significant economic force, with 1.5 million organizations employing 10% of the country's workforce and contributing over 5.7% to the national GDP.

Globally, nonprofits employ 7.4% of the worldwide workforce, with a mix of paid staff (70%) and volunteers (29%). The total annual revenue of U.S. nonprofits is a staggering $2.62 trillion, highlighting the massive scale and impact of this sector.

So "the business of doing good" is not just a noble pursuit, but a major economic driver. And as demands on nonprofits continue to grow, the need for disciplined, effective management has never been greater.

Unique Challenges, Unique Opportunities

Of course, the nonprofit world faces some distinct challenges that set it apart from the corporate sector. Limited budgets, heavy reliance on volunteer labor, and tensions between boards and managers are just a few of the special conditions that nonprofit project managers must navigate.

The start-up phase of many nonprofit initiatives, for instance, can be especially tricky. Since no planning or preparatory work can be charged to a grant budget until the funds are secured, nonprofits must essentially complete the entire project initiation process before any resources are available. This Catch-22 situation requires creative problem-solving.

Volunteer involvement adds further complexity, as this "high-maintenance and extremely variable" resource base demands strong coordination and communication skills. And when a project is considered mission-critical, it often falls under the purview of a nonprofit's board of directors - which, as one Harvard Business Review article bluntly stated, represents "a rare and unnatural act" of effective governance. 

So while the end goals may look vastly different, the need for rigorous planning, execution, and control is no less vital in the nonprofit space. And that's where the immense potential of project management comes into play.

Applying PM Principles

When nonprofits do embrace project management principles, the payoffs can be substantial. Some experts propose that nonprofit boards should "projectize" their work, forming temporary task forces (i.e. project teams) to accomplish time-limited, goal-driven initiatives.

The key is for nonprofit leaders to shift their mindset from viewing their work in terms of ongoing "programs" to thinking in project-based terms. This means clearly defining scope, establishing measurable goals, developing detailed plans, and monitoring progress - all hallmarks of effective project management.

Interestingly, the grant application process itself can serve as a natural entry point for nonprofits to start adopting project management techniques. Grantmakers often couch their funding in project-based language, requiring applicants to outline specific problems, solutions, timelines, and success metrics.

Nonprofits that learn to translate their long-term strategic vision into well-defined, fundable projects stand a much better chance of securing the resources they need. And as staff and volunteers see the benefits of tools like work breakdown structures and risk management plans, the value of project management becomes increasingly clear.

Of course, changing the culture of any organization is a gradual process, and nonprofits are no exception. It’s important for project management evangelists to be persistent and patient in introducing these new ways of thinking.

Getting Involved

So how can project management professionals get involved in helping nonprofits? One great avenue is through volunteering. Offering to lend your expertise to a local nonprofit organization is an excellent way to get your foot in the door.

Meanwhile, for those already involved in nonprofits, upskilling in the discipline of project management can help you drive greater change in your organization. You can check out the Center for Project Innovation’s free online course in project management best practices to get the ball rolling.

The nonprofit realm represents a massive, often overlooked opportunity for project management to drive positive change in the world. While the deliverables may look quite different, the fundamental principles of planning, execution, and control are no less vital. And with the right mindset and approach, project managers have the power to truly reinvent the business of doing good.