Out of the Bag :
The Women's Sector? Not Quite...

by Josh Moore and Maria Nardell

Cigar smoke, scotch on the rocks, “boy’s club” antics.  Fortunately for those of us in the nonprofit and philanthropic world, such stereotypical images of the corporate elite and gender homogeny do not find themselves within the walls of our altruistic endeavors.  We fight for social justice, equality, and unbiased access to opportunity. We benefit from the diversity and equality that is the object of so much of our work – or do we?

At first glance, nonprofits appear to be predominantly female-run; even though they make up just under half of the total U.S. work force, women fill 68% of nonprofit staff positions. Moreover, when looking at nonprofits as a whole, 60% of executive directors are female. (Halpern, Patrick R. “Workforce Issues in the Nonprofit Sector,” American Humanics Initiative for Nonprofit Sector Careers. May 2006: 7).

Yet, the story does not stop here. When we take a deeper look at the gender composition of senior management, nonprofit size makes a significant difference. Although women do comprise the majority of all nonprofit executive directors, they are over-represented in nonprofits with an annual budget of less than $500,000 and under-represented in nonprofits with an annual budget of $5 million or more. 

Unlike the mixed gender disparities in staffing, disparities in nonprofit compensation are much more defined. Overall, men in all positions of nonprofit organizations have a median compensation that is 28% higher than women. Even when comparing male and female CEOs of nonprofits, including smaller organizations that are primarily led by women, men earn more than women.

There are multiple reasons why gender disparities within the nonprofit sector persist in the 21st century. Perhaps married women feel less pressure to be the primary breadwinner, allowing them to prioritize the “feel-good” aspects of their careers over the pay level.  Also, nonprofits are typically seen as having a less “cut-throat” atmosphere than many companies, giving women a more flexible balance between work and home responsibilities.

Yet signs of change are evident. Corporate America is beginning, however slowly, to see the benefits of a diverse workforce. A recent Financial Times article reports that Wall Street trading firms— traditional domains of men—are making a particular effort to retain female specialists by arranging more flexible working arrangements for women with children and designing new programs to attract – and retain – top female applicants (“Wall Street’s gender agenda,” Financial Times, pg. 10, February 28 2007).

So what if nonprofits, the leading advocates for social justice, become less diverse than their corporate counterparts? Not only would this affect the credibility of the sector, but over time it could have detrimental effects for funding opportunities as well. Yet as there is an ever-growing need and appreciation for the professional skills and talents of those in the nonprofit sector – whether fundraisers, grant makers, nonprofit staff or executives – one can hope that the sector will do all that it can to attract and retain the best candidates for the jobs, no matter their gender.

Josh Moore is a contributing writer for The Brownbag Magazine. Maria Nardell is a guest writer. Click here for the full article.