Glossary of Terms
Human Capital
The intangible collective resources possessed by individuals and groups within a given population. These resources include all the knowledge, talents, skills, abilities, experience, intelligence, training, judgment, and wisdom possessed individually and collectively, the cumulative total of which represents a form of wealth available to nations and organizations to accomplish their goals.
Huff, R. (2015). Human Capital. Encyclopedia Britannica.
Nonprofit Workforce
Millions of Americans are employed by nonprofit organizations and professionally engaged in nonprofit careers. Nonprofits employ more than 14.4 million people (estimated), accounting for more than 10 percent of total private employment. During 2003 to 2013, nonprofits outpaced businesses and the public sector in their percentage growth in employment. Total nonprofit wages are at least $634 billion a year. In addition to their own work, nonprofit employees offer essential support for unpaid volunteers (including board members) and, in turn, volunteers supply billions of hours of time annually. Volunteer labor is worth $167.2 billion a year. The nonprofit workforce contributes incalculable value to society through delivery of goods and services to communities that the public sector and the marketplace cannot or will not offer. (Note: all figures from 2013.)
These statistics in this entry are from McKeever, B. & Gaddy, M. (2016).
“The Nonprofit Workforce: By the Numbers.” Nonprofit Quarterly.
People Systems
The array of organizational practices, policies, habits, and structures that support and strengthen the morale, ability, and advancement of employees and volunteers so that they perform at the highest levels of excellence.
This definition was written by Rusty Stahl for this publication.
Talent-Investing
Intentional deployment of resources to support and develop professionals and leaders in the nonprofit workforce. These resources may include financial capital, political capital, time, attention, skill, etc. Investments may be made internally (by the board, by an executive or by executives) or externally (by foundations, donors, government funders, or corporate funders). Talent-investing may support various types of interventions, depending on context, need, interest, and level of intervention. For more specifics, see the Fund the People Guide to Investing in Grantee Talent.
This definition was written by Rusty Stahl for this publication.
Talent Philanthropy
Talent philanthropy is the intentional philanthropic investment in grantee and nonprofit talent in order to increase performance and impact. The phrase “philanthropic investment” may refer to individual giving, institutional grantmaking, nonprofit fundraising, or other types of philanthropy. In other words, talent philanthropy may be deployed from all directions and positions in the nonprofit sector. In the past, Fund the People initially used the term “talent philanthropy” but has shifted to using the more descriptive, actionoriented phrase “talent-investing.”
Stahl, R. (2013).
“Talent Philanthropy: Investing in Nonprofit People To Advance Nonprofit Performance.”
The Foundation Review, 5(3), 35-38. Available at fundthepeople.org.