by CourseAdvisor

Businesses exist to make money for their owners or investors, but the mission of nonprofit organizations is to benefit the public good. Nonprofits (known outside of the United States as nongovernmental organizations or NGOs) fall into four major categories:

• Business, professional, labor, or political organizations
• Civic and social organizations
• Social advocacy organizations
• Grant-making and giving organizations

Nonprofit organizations include:

Business, professional, labor, or political

• Chamber of commerce
• Bar association
• Labor union
• Political action committee (PAC)

Civic or social

• Alumni association
• Fraternal association
• Parent-Teacher association

Social advocacy

• Human rights organizations
• Environmental, conservation, and wildlife organizations

Grant-making and giving

• Charitable trust
• Private foundations (single donor)
• Public foundation (multiple funding sources)

Management, business, and financial occupations make up 23% of jobs in the nonprofit sector. Chief executives determine policy, direct operations, and report to a board of directors. In large nonprofits, middle managers direct segments of the organization's operations. Social and community managers direct social services or community outreach programs. As in most organizations, accountants and auditors manage financial affairs, and prepare financial statements and other reports.

Public relations and fundraising go hand-in-hand in nonprofit organizations. Public relations specialists prepare press releases and contact print and broadcast media outlets that they hope will use them. A director of development manages fundraising by:

• Soliciting gifts and bequests from donors
• Hosting special events
• Applying for grants
• Organizing phone and letter appeals

The job opportunities in nonprofits are excellent, although the average wage, especially in civic and social organizations, can be lower than that in private business. Part of this discrepancy is due to the large number of entry-level and part-time jobs.

Education requirements depend on the position and organization. Most chief executives have master's degrees in business or public administration. Other managers start out working in the organization's programs and work their way up. Senior accountants and auditors, especially those in large organizations, benefit from MBAs and the Certified Nonprofit Accounting Professional (CNAP) accreditation.

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Source: Occupational Outlook Handbook, 2006-2007 Edition; Bureau of Labor Statistics, U.S. Department of Labor.