Developing business in the not-for-profit sector

By Linda Julian

Sometimes still referred to as charities, community organisations, or clubs, this not-for-profit “third sector” is vast.

The “third sector” is neither public sector nor private sector.  Not-for-profits are diverse – their operations span sport, religion, politics, culture, the arts, professions, health, disability, medical research, family and community services, environment, social justice, and the list continues…

In Australia alone there are several thousand not-for-profits, and around a quarter of a million organisations which employ staff and are of sufficient scale to be incorporated.

Community members give time and money to not-for-profits.  Long-term, the trendline shows financial philanthropic support increasing.

Along with growing professionalism, organisation sizes and budgets, comes increased opportunity for involvement of expert professional advisers.

In many ways, developing business with not-for-profits is just like other prospective clients.  Here is just a taste of what distinguishes the third sector:

• between 80% and 90% of adult Australians donate to them
• around 20,000 accept tax-deductable gifts which brings special accountabilities
• many are recipients of government funding with obligations attached to it
• their purpose is to promote community good, by providing services and advocacy for sections and interests of the community
• like every other sector, they see themselves as different and special and want professional advisers who really get it.

The third sector is far from homogenous.  Participants range from social activists, organisations who describe themselves as social entrepreneurs developing community capital, right through to those who sort and sell the clothes and household goods you donate to the Salvos.

You’ll be far more attractive and likely to succeed in winning third sector clients for your professional services if you first understand that they may march to very different drumbeats.  Then, integrate this insight into your pitch, your advice, and all your interactions.

For help to develop business in the third sector, please get in touch.