idealist.org

AS OPPOSED TO GOVERNMENT (PUBLIC SECTOR) and business (private sector), the nonprofit sector (also referred to as nongovernmental organizations [NGOs], the independent sector, the philanthropic sector, or the third sector), is often defined by what it is not. However, the nonprofit sector is comprised of organizations that are trying to create a better world, as defined by each of these organizations' missions. Unlike businesses, which sell products and exist to make money for their owners or shareholders, nonprofit organizations exist to promote a cause or to provide a public service. Within the nonprofit sector, there are organizations whose missions directly contrast with one another, and many more whose work is guided by similar values, goals, and visions. These organizations have varying levels of government oversight depending on the country in which they are located.

Third sector organizations address issues such as poverty, the environment, youth development, community service, health care, workers' rights, public policy, violence prevention, the arts, economic development, and many more. People often think of nonprofits as youth centers and soup kitchens, but they also include religious institutions, universities, hospitals, trade associations and unions, and museums. In the United States, as recognized by the Internal Revenue Service (IRS) there are three main types of nonprofit organizations:

• 501(c)(3) – majority of nonprofits, must show broad public support, donations are tax-deductible (e.g., Action Without Borders)
• 501(c)(4) – advocacy work, donations not tax-deductible (e.g., ACORN)
• 501(c)(6) – professional and trade associations, donations not tax-deductible (e.g., Chamber of Commerce)

According to the National Center for Charitable Statistics, there are approximately 1.4 million registered nonprofit organizations in the United States. The Independent Sector reports that one out of 12 people in the US are employed by nonprofits, or approximately 12 million individuals, with the majority working in universities and hospitals. Some have the same titles as professionals working in the corporate or government sector: receptionists, CEOs/Executive Directors and presidents, accountants, managers, researchers, event planners, teachers, sales people and programmers. There are also many titles unique to the nonprofit sector: community organizers, advocates, program managers and volunteer coordinators. This only serves to show that many of the same skills and opportunities available with businesses and the government are available in the nonprofit sector. The uniqueness of the nonprofit sector should not be overlooked; any of your skills and talents could be put to use within a nonprofit organization.

It is important to mention here that the statistics listed above do not have an international focus. Researching the nonprofit sector is a relatively new field, so the minimal amount of data we have tends to be for the United States. Nevertheless, if these numbers are so large for the US, imagine how big the nonprofit sector is when you consider the rest of the world! A good resource to look at in order to have a better idea about international NGO statistics is the Johns Hopkins University's Comparative Nonprofit Sector Project.

Continue to "What to expect from working in the nonprofit world" >>>

Read more...

1. What is the nonprofit sector?
   
2. What to expect from working in the nonprofit world
   
3. Where do you fit in the third sector?
   
4. Finding your dream job—or at least a position in that ballpark
   
5. Other ways of entering the nonprofit sector
   
6. Finally...