By Paul Connolly, SOM’91

The Winter 2007 issue of the PSE Newsletter has two feature articles from alumni who are in the field of nonprofit consulting, a popular next step for SOM graduates. Paul Connolly gives us the perspective of a seasoned professional, while Kate Greene talks about the experience of staffing a project as a senior associate. –Eds.

My role in consulting to philanthropies and nonprofits has been an experience of great learning and continuous growth. In addition to recounting the unique experiences that led me to my current position, I would like to share some of the insights I have gained from working in this dynamic field, and some notable developments I have observed in the nonprofit arena.

At college, I studied city and regional planning and provided direct services to nonprofit organizations on a voluntary basis. After graduation, I worked for the New York City government in the department that designed and constructed public facilities such as jails, libraries and courthouses. After three years, my role had expanded greatly, but I desired a greater challenge.

Yale SOM attracted me due to its multi-sector approach to management. In the process of completing my MPPM, my interest in nonprofit management developed, especially after taking the course in “Strategic Management of Nonprofit Organizations” taught by Sharon Oster and Stan Garstka. After graduating from SOM in 1991, I worked as an independent consultant to nonprofit organizations for a few years until one of my clients offered me a position. I spent the next three and a half years at the Nonprofit Facilities Fund (now called Nonprofit Finance Fund), a community development financial institution that provides facility-related loans and management assistance to nonprofits.

Ten years ago, I returned to consulting as an Associate Consultant at The Conservation Company, now known as TCC Group. I am now the firm’s Senior Vice President, directing the Philanthropy practice and overseeing marketing and business development activities. Our clientele fall within three areas: nonprofit organizations, philanthropic foundations, and corporate citizenship programs. This range has exposed me to a diverse spectrum of clients and consulting engagements.

TCC Group’s services include management consulting, strategic planning and capacity building. Furthermore, as increased competition for funding has led to a greater need for impact measurement among nonprofit initiatives, TCC has expanded its evaluation services. TCC also provides grant management services to funders. This can include managing family foundations from our New York office, running grantmaking programs for private and corporate funders, or developing and operating capacity-building programs funded by private and corporate funders. Administering grantmaking programs gives our staff a valuable insight into our client’s point of view.

As many MBA graduates consider the field of consulting, it is worth noting that there are several differences between consulting to nonprofits and consulting to for-profits. The role of stakeholders is different in nonprofits and can have a significant impact on the work involved. Our foundation and nonprofit clients typically view their governing board members as equal partners with their staff. In comparison to the private sector, these boards are typically involved in strategic and organizational planning to a high degree. As consultants, our job includes working effectively with both the board and staff, and in some cases, with many additional stakeholders. For example, when we conducted planning services for an orchestra, the input of the musicians was just as important as that of the board and management staff.

When it comes to the results and recommendations delivered by consultants to nonprofits, there can often be less internal pressure for implementation, compared to for-profits. In the nonprofit world, shortcomings or challenges can often be avoided with additional funds from donors. This form of problem replacement is often not as easy in a for-profit operation.

Since I joined TCC Group, there has been tremendous growth in the number and size of potential clients. The number of nonprofits in America grew by 68% from 1993 to 2003 and their expenditures accounted for approximately 9% of gross domestic product. Foundations almost doubled from 1995 to 2005, with total giving reaching $33.6 billion in 2005.

Along with this growth in philanthropic investment, there has arisen an increasing demand for accountability in the nonprofit and philanthropic sectors. Both internal and external stakeholders are exerting expectations for proven results. The need for solid evaluation and careful strategic planning is consequently on the rise, and TCC is addressing this need in its service offerings.

My path of experience, from my pre-SOM endeavors to my current role with TCC, has exposed me to management challenges and clientele that truly exemplify diversity. I am happy to say that TCC Group allows me to carry out SOM’s legacy of leadership for both business and society.

Read more about Paul Connolly’s thoughts on nonprofits in his two books: “Strengthening Nonprofit Performance: A Funder’s Guide to Capacity Building” and “Navigating the Organizational Lifecycle: A Capacity-Building Guide for Nonprofit Leaders.”

Read more about TCC Group.

Read on for Kate Greene’s article on a recent project she completed at TDC.