The non-profit-making sector is literally that: organisations whose aim is to forward a cause rather than make a profit. Such organisations might still raise and handle money but their finance is a means rather than an end.

Sometimes called the ’third sector’ – the other two being the public and private sectors – its organisations include registered charities, government quangos, mutual and friendly societies, religious organisations, trade unions, trade associations and professional bodies.

Non-profit organisation funding

Such organisations can be funded by private, public or business donations, government aid, grants, trusts and/or bequests, etc. The latest government figures suggest that donations alone amount to around £9bn per year, while formal volunteering – England and Wales has over 20 million regular volunteers – is worth about £38bn.

Non-profit organisations differ both in structure and operation from businesses dedicated to making a profit. Non-profit organisations tend to:

• be accountable to their financial backers / donors, their trustees and their beneficiaries, rather than to a board of directors and shareholders
• provide a public benefit beyond that offered to their employees and/or members
• be at the mercy of their volunteers, who can and sometimes do leave without notice
• have a complicated and varied organisational structure where volunteers may share jobs, local charities may form into larger federations, etc.

It’s often also very difficult to monitor and measure the performance of non-profit-making organisations as much of their work depends on changing attitudes rather than selling products or services.

The non-profit sector – pros

The big advantage to a graduate job in the non-profit sector is the ’feel-good’ factor. Non-profit organisations work to forward a cause and their staff have the satisfaction of knowing that their work is contributing directly to making the world a better place.

Jobs tend to be more flexible and varied, and part-time jobs much more common. Salaried staff often find themselves working with non-salaried volunteers who are drawn from all sectors of society. The dynamics of management therefore differ from the public and private sectors.

The non-profit sector – cons

The major disadvantage to working in the third sector is that there is always too much to do and too few people and resources to do it with. Consequently there is much pressure, little slack time and staff must resign themselves to never being able to do as much as they wish or as is needed.

As the non-profit sector relies very much on donated income, it is highly sensitive to economic factors outside its control; charitable giving almost always stems from ’spare’ income – if there is an economic downturn, fewer people have spare cash and more need charitable help. The sector is therefore very volatile.

Non-profit sector salaries

Salaries in non-profit-making organisations differ hugely according to the size and nature of an organisation; for example, a small charity with few resources will tend to pay less than a professional association.

Traditionally lower than in business, salaries have been steadily rising in order to attract talented staff. Starting at around £14,000 to £19,000, salaries can rise to around £30,000 with experience, while senior staff can command salaries of £50,000.

Find out more

• How to find graduate jobs in non-profit organisations
• Charity fundraiser job description
• Campaign officer job description

Useful organisations

• Ethical Careers
• National Council of Voluntary Organisations
• Working for a Charity