Thornhill: Nonprofits can profit from boomers

In our column to kick off the year we boldly predicted the boomer generation, those born between 1946 and 1964, would "volunteer even more" in 2012.

Turns out that's only the half of it.

Boomers apparently don't simply want to volunteer, they want to start and run their own nonprofits. In a recent study by Civic Ventures and the MetLife Foundation, some 12 million boomers said they plan to start either a socially conscious business or a nonprofit during their "retirement" years. In other words, boomers plan to give back in a big way.

On the surface, that sounds great: We strongly endorse such a movement, and this column is going to be incredibly brief. Dig a little deeper and one sees that having millions of boomers starting new nonprofits has issues. Ones that require many more words ...

It seems for some in the nonprofit sector, this news of more nonprofits is shocking and disturbing. They argue that the last thing nonprofits, especially charities relying on donations to survive, need are millions more nonprofits or charities.

The Urban Institute reports that there are only about 1 million nonprofit charities operating in the United States right now. (Other types of nonprofits include civic leagues, chambers of commerce, social clubs and so forth.) Even if only 10 percent of boomers come through and start their own nonprofit, that would more than double the number of charities trying to "do good," and presumably chasing the same pool of donations.

That's a problem.

The thinking among those in the philanthropic category goes like this: The nonprofit market is inefficient already — supporting redundant nonprofits and mediocre results. If the existing nonprofits would work together better, they could accomplish more and perhaps diminish the needs perceived by boomers.

Similar to the for-profit sector, there is also a need for constant innovation in the nonprofit sector. If boomers can enter the market and foster innovation, that would be a good thing. But if boomers start a million self-centered, individualistic nonprofits, dealing with an issue others are already trying to address, then they won't be helping any cause. They will add new infrastructure, overhead and operating expenses to a category already over-burdened with administrative costs.

The answer, then, is for boomers simply to find the right existing charity or nonprofit for them and sign up as a volunteer. Obviously.

The reality is that many existing nonprofits are notoriously bad at accommodating new blood and thinking. Boomers have already been burned by charities. They welcomed the boomers in, only to assign them seemingly meaningless clerical duties, failing to value their professional skills or abilities, and politely brushing off their suggestions for new procedures and policies. One retired colleague recently told us, "I've been on boards and helped several volunteer organizations. Turns out they mostly wanted my money, not my thinking."

Organizations like VolunteerMatch.org and United Way try to link volunteer needs with those ready to give their time. Visiting both sites and exploring the opportunities, we were left with the impression both are set up to serve the needs of the charities, not the volunteers. For example, other than identifying a location and a broad topic area, there isn't any "matching" of an individual's interests, skills or availability with a particular charity.

Boomers, based on our research, offer nonprofits a practically endless supply of capable, talented and committed volunteers for years to come. Yes, boomers are blessed with a strong generational trait toward self-centeredness. That can be leveraged if nonprofits focus not on what the boomer can do for them, but what the nonprofit can do for the boomer. Tell boomer volunteers about the emotional satisfaction they will feel as volunteers. Tell them how volunteering will improve their self-image and self-esteem.

This "what's in this for me?" mentality is something American Express taps into with their Members Project effort. Donate an hour of time to a nonprofit and earn 500 "reward points," up to 10,000 points a year. Cash those in for fabulous merchandise.

Nonprofits should encourage boomers to apply their considerable management and team-building skills to address operational inefficiencies, create partnerships with other like-minded organizations, and make real progress toward achievable goals. Boomers can bring thoughtful innovations to programs and approaches to existing charities, instead of running out and trying to start another new one.

In the end, we'll stick with this being good news. If millions of boomers do get the bug and start a new nonprofit or charity, we will be happy. Didn't Google improve on Yahoo? Facebook one-up MySpace? Apple's iPhone crush RIM's BlackBerry?

If competition from boomers improves nonprofits, we all profit.