7.2% of American workers are in the nonprofit sector. And, according to new figures, the nonprofit part of the job market is growing faster than the overall job market.

Why are so many people flocking what are usually underpaid difficult jobs?

It could be, as Lester Salomon, author of the new study, suggests, that this is part of a larger movement toward a service economy. But that answer leaves me a bit cold. It seems that with the addition of more workers each year several things must be happening in some combination:

1) Existing nonprofits are growing and hiring more staff.

2) New nonprofits are starting and attracting sufficient resources to hire staff.

3) Activities that might have been performed by government or the private sector are devolving to nonprofits.

The first two are hopeful, healthy trends; the third is a bit more troubling. But the overall message is that the sector is vibrant, expanding, and looking to involve new people. Way to go!

A recent Board Café article (CompassPoint; 1/19/07) reported the findings of a reader survey about boards. Only 13% of respondents, 80% of whom are mostly board members themselves, thought that boards do a good job at fundraising. If you asked executive directors, even that anemic 13% might be too high.

So, what’s up? Why can’t boards raise money?

In my long and sometimes painful experience with this question, I have seen the following reasons:

1) Board members were recruited with no expectation to raise money, then had it dumped on them later — the classic bait-and-switch. Candidates are often told — by other board members – that fundraising is not an expectation.

2) Board members are not trained in how to raise money, just exhorted to go out and do it. As one client said, “What to they want me to do, go out and rob a bank?”

3) There is tension between having a constituent board and a board with access to money. Many nonprofits want it both ways — a board of the people, and a board that can raise serious cash. That is a tough combination in most circumstances.

4) Staff don’t know how to develop the board, so they just get frustrated and nag. Staff’s board development and management skills may be lacking. They pay little attention to the board, but lament its inability to raise money.

5) People who raise and give substantial sums want to have a voice in running the organization. If they are shut out of appropriate board governance then they will not be very motivated to fundraise. The executive director must engage the board deeply for it to raise money.