The nonprofit world has long been thought of as a bastion for the selfless. It's often seen as the place to work if you're more interested in giving than receiving, because - so the prevailing wisdom goes - there's not as much profit in it as other sectors, financially or professionally. But according to a new study from The Bridgespan Group, that view may change - because smart nonprofits are starting to take leadership development very seriously.

Bridgespan's latest publication, Plan A: How Successful Nonprofits Develop Their Future Leaders, outlines this shift, and investigates different ways organizations are pushing boundaries. If these nonprofits are any indication, the social sector might just carve out a new reputation among those who value leadership development and employee engagement.

Gaining an edge by cultivating leadership

Nonprofits have gotten savvier about traditional approaches to growth, like fundraising, campaigning, and measuring impact. And now, leading organizations are turning their attention to another critical organizational indicator: leadership development.

There are trends in the sector that are creating a greater need for high-quality leaders, says Preeta Nayak, co-author of Plan A and manager at Bridgespan. Running nonprofits is getting more and more challenging, with budget cuts, the need to focus more on outcomes and measurable results than in the past, and exciting but complex opportunities for collaboration across organizations and sectors.

According to Nayak, 63 percent of nonprofits surveyed by Bridgespan feel their organization doesn't fully understand the skills and capabilities needed to execute on goals three to five years down the line, nor do they have plans to address that gap. But for a growing number of organizations, innovative leadership is a key priority. Impact workers who can deftly juggle pressing issues while maintaining long-term vision have the opportunity to stand out and advance.

Different approaches to leadership development

It's important to recognize that nonprofits choose different leadership development tactics depending on the size, structure, and values of their organization.

At the Nature Conservancy, managers are tasked with identifying high potential succession candidates - those who have the promise to take on more responsibility down the line, versus those who are strong performers in their current role due to hard skills or competencies. From there, managers have an open conversation about the employee's future at the organization, getting a better sense of employee aspirations and long-term project possibilities.

And at KIPP, a national network of public charter schools, organizational leaders make a point to support school principals and teachers as champions of leadership development, having them organize peer gatherings to discuss challenges, map out competency shifts that need to take place, and coach one another on progress.

As more organizations in the sector adopt leadership development strategies, we'll likely see other strategies take shape, as well. For someone looking to enter the sector, it's critical, then, to understand how different approaches might resonate with one's own values and interests.

How do you know an organization cares about its future leaders?

Don't assume that just because a nonprofit is small, they won't invest in developing you as a leader - if any of the trends outlined in Plan A ring true, it's that those organizations investing in leadership have set the bar high, and others will follow. The key? Leadership development often comes from the top down.

While in general we've observed greater focus on leadership and talent development among larger organizations, says Nayak, it appears that at all sizes there are some organizations that are being thoughtful about developing their bench strength. In every instance where we've seen highly effective leadership development, we've observed that the CEO is driving it.

Internal recruitment can be one indication that an organization takes leadership development seriously. Save the Children, an international NGO focused on children's rights, sets a goal of filling 70 percent of leadership positions from internal hires - that's 40 percent higher than the average nonprofit. By crafting individualized competency plans and executing on its benchmarks, the nonprofit has met this rigorous target.

But organizations without formal rotation or recruitment programs can still offer critical leadership development. As Nayak points out, research shows that 70 percent of growth in leadership skills comes from on-the-job learning and stretch opportunities - something that smaller, growing organizations often have in spades.

So what's the trick to finding the right fit with an organization? According to Nayak, you've got to dig a little.

How does the organization work within its space?
Nonprofits frequently collaborate with other organizations to achieve their mission, but different partnership approaches require different skills. Explains Nayak, some nonprofits are increasing their collaborations with for-profits, such as the YMCA and their contracting with insurance companies for their diabetes prevention program. The skills and experience required to do this well are very different than the partnering going on by local nonprofits with one another to serve the needs of a specific community. Think about where your skills are strongest and position yourself accordingly.

Ask about the organizational culture
At Year Up, a nonprofit focused on education and job training for at-risk young adults, hiring managers look for candidates who are able to handle the rapid pace, tolerance for ambiguity, and quick shifts the organization undergoes. To understand the organizational culture, ask questions about who succeeds and who struggles, and how that manifests within the team.

Pay attention to the tactics used to support potential leaders
Whether you're in the midst of the recruitment process or simply gathering insight, ask about the typical career trajectory within the organization, and how current leaders moved into their positions. Managers at Youth Villages, for example, ask new employees whether they are willing to relocate or launch a new site project down the line.

When it comes down to finding a nonprofit that best meets your own leadership development goals, there is often a simple litmus test. Do they relish the opportunity to groom up-and-comers? asks Nayak. If so, you may have found yourself a great place to grow.