Nonprofit Leadership Best Practices: 10 Lessons On How To Lead Nonprofits

If you’re looking for an easy, high-paying job, keep away from the nonprofit sector. But if the goal is to apply the Jeffersonian virtues of a knowing head and honest heart and contribute in a genuine way to building a brighter, stronger, and more socially-just future, leading in a professional or volunteer role for one of America’s 1.5 million nonprofits will make productive use of the best aptitudes, skills, and potential that you currently have and can develop for the future.

Launched in 2018, Eskin Fundraising Training is devoted to training, nurturing, and supporting the success of the men and women responsible for securing gifts of time, talent, and treasure that fuel the good works of the social sector and improve the quality of life in boundless different and meaningful ways.

Eskin Fundraising Training has proudly sponsored more than 250 live and/or virtual learning communities facilitated by distinguished experts from a wide range of disciplines and engaging thousands of professional and volunteer nonprofit leaders representing organizations of all different sizes, missions, and parts of the country, and now even internationally. The fundamental premise of an instructional approach is that while no single person has all the answers, in the live and/or virtual learning communities, there is the collective capacity to answer any question.

Based on research, data, sound principles, proven strategies, and best practices, Eskin Fundraising Training highlights the following 10 effective lessons for men and women to successfully guide nonprofits of all different sizes, missions, and locations to achieve their missions.

Here are 10 lessons to help nonprofit leaders succeed

To navigate the complex challenges of the social sector, professionals must adopt effective nonprofit management strategies that align with their core mission. By integrating these proven principles, directors and staff can master leadership techniques for organizational success. The following ten lessons offer a comprehensive guide to inspiring teams, engaging donors, and driving meaningful community impact.

1. Passion is a superpower. Nonprofit leaders embrace missions with everything in the body, mind, and soul. They are true believers. They believe in the might of their organizations, in the people they work with to champion shared visions of a better world. They believe in the basic goodness of the American people to live the spirit of Abraham Lincoln’s “better angels of our nature,” to respond generously to inspiring appeals for gifts of time, talent, and treasure.
   
   When leaders radiate profound belief in their cause, it becomes contagious, transforming casual observers into lifelong advocates. Ultimately, it is this resolve that sustains an organization and propels it toward enduring success.
2. The greatest impact is not achieved by themselves but what they do to motivate fellow professional and volunteer supporters. Leaders are a special blend of visionaries, mentors, teachers, coaches, and lifelong learners and sharers. They give people what Gallup has discovered to be the most desired commodity furnished by leaders — hope. They generate the conviction that we can take matters into our own hands and that more is possible.
   
   By cultivating this shared sense of possibility, leaders empower their teams to dream bigger and push past perceived limitations. They create an environment where every staff member and volunteer feels their individual contribution is vital to the larger mission. This collective empowerment transforms a solitary vision into an unstoppable movement for lasting change.
3. Collaboration is celebrated. Donors are forced into the excruciatingly difficult position of not choosing between the good and the bad but between the good and good. The gifts of time and money are precious and the greatest possible return on philanthropic investments are a necessity. Forward-thinking leaders welcome the power of collaboration, coordination, and communication to magnify impact and willingly set aside organizational and personal egos.
   
   Nonprofits can tackle complex social issues far more effectively by pooling their resources among like-minded organizations and individuals. Taking a collaborative approach not only maximizes an organization’s impact but also inspires greater confidence among philanthropic investors. When organizations unite under a banner of mutual support, the entire community reaps the rewards.
4. A relentless commitment to building and nurturing teams. The competition for high-performing professionals and volunteers is fierce, if not more competitive, than donor dollars.  It is rare for nonprofits to retain high-performing professionals and volunteers for as long as two years. Eskin Fundraising Training teaches that time is more valuable than money, because it can never be replaced.
   
   Investing heavily in your employees’ professional development and emotional well-being lets nonprofit leaders cultivate a culture of appreciation. Ensuring that every team member knows their time is valued drastically reduces turnover and builds a strong foundation for long-term organizational stability.
5. Every day presents opportunities to gain wisdom, grow, and become better. It might sound like a cliché, but failures are truly profound teaching moments. They shed light so brightly that the same mistakes will not be repeated.
   
   For example, take a highly anticipated fundraising gala that falls short of its financial goals. True leaders won’t treat the event like a defeat, but an opportunity to reevaluate donor engagement strategies. Transparently addressing systemic issues lets the team pivot toward a more targeted, successful approach for the next campaign. 
6. Tap the power of both artificial and human intelligence. New technology has certainly improved productivity and the quality of life. But robots cannot feel emotions, pain, grief, and joy. Even more vital than human intelligence is emotional intelligence—empowering social connections, empathy, and bridging different viewpoints. Everyone always seems to be in a rush; it is so refreshing and welcome to pause and slow down the frantic pace for greater reflection.
   
   While AI dramatically improves organizational productivity, it takes authentic human empathy to bridge diverse viewpoints and forge meaningful social connections. By intentionally slowing down to prioritize this emotional intelligence, leaders strike the perfect balance to ensure their missions remain operationally efficient yet deeply human. 
7. Make every effort to listen closely as much as you’re speaking. Nothing makes people feel more valued than being asked for their opinions, advice, and counsel. Always probe for deeper understanding. That’s why a popular expression in the fundraising world is: “Ask for money and you get advice but ask for advice and you can be rewarded with gifts.
   
   Imagine asking a major benefactor what aspects of your mission resonate most deeply with their family's core values. Absorbing their response without distraction reveals the specific passions that will organically drive their next philanthropic investment. Active listening transforms standard solicitations into meaningful conversations, ultimately building long-term relationships.
8. Progress is achieved at the speed of trust. Trust is something that doesn’t come overnight. It takes persistence to always deliver on what you say you will do, and better yet over-deliver. It’s too easy to make excuses about why promises and deadlines aren’t met. Trust is earned by consistently proving that deeds live up to words and expectations.
   
   When stakeholders see that an organization faithfully honors its commitments, their confidence in its leadership team grows exponentially. This steadfast reliability is the bedrock upon which major gifts, long-term partnerships, and enduring community support are built. Without this unwavering trust, even the most brilliantly designed strategic plans are destined to falter. 
9. Challenges aren’t shirked but welcomed. The nonprofit sector has, is and will always be characterized by demand exceeding supply. Leaders must reach dig deep and through the power of trying new ways and innovation, forge the ability to do more with less.
   
   When a sudden natural disaster severs traditional supply chains, for example, nonprofit relief organizations often pivot by forging rapid, unconventional partnerships with local businesses to source essential materials on the ground. Instead of retreating in the face of unprecedented logistical hurdles, these leaders creatively reinvent their operational models to meet community needs. By confronting systemic shocks head-on, they prove that a true commitment to the mission always outshines circumstantial adversity. 
10. Humility is an absolute necessity. No one has all the answers, and great leaders understand this truth more than others. All of us have both strengths and weaknesses. Leaders put their strengths to the greatest test, but are wise enough to compensate for shortcomings by surrounding themselves with people and resources that can fill important gaps.
    
    This critical self-awareness allows leaders to step back and let brilliant colleagues shine, fostering a deeply collaborative and empowering workplace culture. By readily admitting when they need help, these leaders model an authenticity that earns immense respect from both their staff and their board. Ultimately, setting aside personal ego is the most powerful way to ensure the organization's mission remains the true star of the show.

Management vs. leadership in nonprofits: understanding the difference

In the majority of research on the topic, people lump management and leadership under the same definition. While many leaders tend to make effective managers, managers need to adopt very specific skills to become effective leaders. Here’s the difference: 

Management is the process of supervising a team and holding them accountable for the tasks they’re assigned to do. Managers are also meant to support them in these tasks, answer questions, and generally ensure the goal of the team is accomplished. In order to manage people well, you need to recognize and appreciate the differences between your team members and encourage them to play to their strengths at the organization. 

Leadership is the process of identifying the vision of the organization, as well as any team decisions that lead to the accomplishment of that vision. This means that anyone on the team can be a leader if they adopt the mindset and attitude of a leader. While you need to recognize and appreciate the differences between team members to be an effective manager, to be an effective leader, you must recognize the similarities on your team instead. This way, you can rally everyone behind the same mission.

Let’s look at an example: 

Timmy is the manager of the development team at a nonprofit. He considers himself to be hands-on as he discusses fundraising opportunities with his team, supervising them, and ensuring everything gets done. However, his method of “supervision” is looking over the shoulders of fundraisers as they reach out to prospects and taking over when he worries they won’t succeed. Timmy may be a manager, but he’s not acting like a good leader. He’s micromanaging his team and likely doing too much.

Meanwhile, Susie is a development team member at the same organization. She knows that the nonprofit is conducting a capital campaign soon in order to build a new community center for increased programming at the organization. She recognizes this goal and takes the initiative to craft a draft of the timeline for the campaign that will help the organization reach its goals even though it’s not a part of her usual workload. As Susie presents her work, she is seen as a leader on the team, ready to take initiative and do what it takes for the nonprofit to reach its goals. Understanding the difference between these two terms helps managers understand that they still have opportunities to lead more effectively and staff members to rise to the challenge of leadership tasks without being an official manager. 

How nonprofit leaders can develop their teams

A good leader doesn’t only ensure that the regular workload tasks are being accomplished at the organization. Rather, a good leader makes sure to stretch their team and ensure growth opportunities are available. As your team members grow, so can your nonprofit. There are a few different ways that your organization can encourage learning amongst team members, all of which require open communication with your staff members. Be the first to ask them about their interests and goals. What do they want to pursue as individuals? Once you have a clear understanding of what they’re looking for, you can provide the necessary resources that staff need to reach those goals. Some of the different opportunities you can offer to your team members include:

• On-the-job experience. Give your team members additional responsibilities and real hands-on experience in the fields that they’re most interested in. For example, if someone is looking to improve their relationship-building skills, ask them to take on some of the major donor stewardship tasks.
• Organization-designed courses. If your nonprofit offers online classes as a part of your mission or your volunteer program already, offer those same courses to your staff members free of charge. You can also design new courses and host them on a learning management platform, giving you an opportunity to expand the audience of learners. Make sure the courses you create have a wide applicability across the organization so that you can make the best use of the time it takes to design them.
• Offer courses designed by a third party. This is one of the most efficient ways to offer courses for your nonprofit staff members. Look for a platform that works specifically with nonprofits so that the course materials are directly relevant to the work your staff members are engaged with. The Nonprofit Leadership Alliance guide to nonprofit courses provides examples of the courses that you might choose to offer for employees.

Individuals who are always trying to better themselves and learn new skills make the best employees for nonprofits. They’re driven by both your mission and their personal ambitions. Help them along the way by providing opportunities to expand their skillsets.

Building team culture and cohesion

As teams have transitioned to hybrid or remote work schedules, disjointed office schedules have led to a lack of connection. As many organizations shifted fully to the virtual world, they left behind the different activities that brought the staff together as a team. Online and remote team-building activities are a great way to carry on the office culture that your organization has fostered among your team members in a virtual setting. Some activities that you might try with your team include:

• Step challenges. Challenge everyone to count their steps each day and post their progress on a shared digital board. Then host a weekly check-in to see how everyone is doing with the challenge. This keeps everyone entertained while encouraging a healthy lifestyle.
• Online games. Many traditional board games have digital alternatives so that people can play from different locations. Gather your team together for one of these online gaming opportunities and encourage some healthy competition between staff members.
• Gamify learning opportunities. Incorporate training opportunities into your organization and encourage staff to take advantage of them with gamification. For instance, you may offer a points system based on who completes different courses offered at the organization. Then, the winner of each week or month receives a prize.

Team building and culture-fostering activities create connections in an increasingly digital world. Astron Solutions’ employee recruitment and retention guide explains how important work culture is to the success of attracting and keeping staff members. They specifically suggest cultivating a culture of learning and development, so look for opportunities to encourage it alongside fun activities. If you are looking for new ways to build and grow as a team, we suggest looking into training opportunities for your top leaders, such as The Nonprofit Leadership Alliance’s guide to building team capacity. This type of guide can help you spark conversation, develop talent, and drive your entire mission forward.

Delegating effectively and avoiding micromanagement

Remember our example of Timmy from the first section of this article? He micromanaged his team. Micromanaging causes a whole slew of negative impacts on your organization, including:

• Depleted morale
• Discouraged employees
• Decreased productivity
• Stress and fatigue
• Decreased employee retention

When you try to do everything yourself as a leader at an organization, you’re bound to end up micromanaging your team. Trusting your employees to support your mission is the foundation of a strong manager-employee relationship. And trust means that you believe in your staff members to do their jobs effectively. You may ask for a reporting system so that staff members are able to manage their projects effectively, but that doesn’t mean you should track all of their movements within that system. We recommend that you carefully analyze your strategic plan and break it down into bite-sized portions. Be sure you know who is in charge of which portion of the plan, and give those people deadlines for when tasks should be completed.

Make sure it’s easy for staff members to get hold of you in case they have any questions about the tasks at hand. You may even host occasional check-ins (not more than once per week) to ask them how things are going. 

Remember, you’re acting as their support but not doing the work for them. Being a true leader is hard work, but it can bring everyone together, unite staff members under a common mission, and help everyone grow as a team. 

Leaders not only make sure all tasks are accomplished at your organization, but they also offer new opportunities for staff members to continue developing their own skills. Continue your research to lead your team in the new year. This guide on nonprofit professional development is a great place to start. Not only will you learn about development opportunities available to you or your staff, but you can also read up on the advantages of continuous growth. 

Then, implement that research into your nonprofit’s strategy. When you act as a good leader should, your staff members will emulate your good example, creating more leaders who are driven by your mission and ready to help others achieve and grow.

Board governance and engagement for nonprofit leaders

An actively engaged board of directors serves as the strategic compass of a nonprofit, ensuring the organization remains steadfast in its mission. Board members set the tone for nonprofit success.

Engaged board members should prioritize these primary duties to keep their organization running smoothly: 

• Strategic Planning: Collaborate closely with executive leadership to define long-term goals and actionable initiatives that directly align with the core mission, guiding strategic programming and fundraising each fiscal year.
• Fiduciary Oversight: Monitor your organization’s financial health and ensure that donor resources are allocated efficiently, ethically, and in compliance with all regulations.
• Resource Development: Actively participate in fundraising efforts, from cultivating major donor relationships to leveraging personal and professional networks to spread your mission.
• Executive Support: Serve as a trusted sounding board for the executive director and staff members, providing mentorship and fostering a culture of continuous leadership development.

By executing these responsibilities, board members move beyond mere figureheads to become catalysts for organizational success. A deep level of active board governance fosters a culture of transparency and trust, empowering the entire nonprofit to achieve its most ambitious visions.

Nonprofit leadership best practices checklist

To run a highly impactful nonprofit, make sure you: 

• Cultivate contagious passion: Leaders must radiate a profound belief in their cause to transform casual observers into lifelong advocates.
• Embrace collaboration: By pooling resources with like-minded organizations, leaders can maximize community impact and inspire greater confidence among philanthropic investors.
• Prioritize active listening: Deepen stakeholder relationships and organically drive philanthropic investments by intentionally asking for and implementing their advice.
• Earn trust through reliability: Ensure that deeds consistently live up to words and expectations, creating a steady bedrock for major gifts and long-term partnerships.
• Delegating without micromanagement: Break the strategic plan into bite-sized portions with clear deadlines, and trust your staff to execute tasks while you serve as an accessible, supportive resource.

2026 will present enormous challenges

• Federal funding will continue to be compromised forcing private philanthropy to provide escalating human service needs to those most at risk.
• Societal division and polarization make it increasingly difficult to bring people together for the common good.
• Cynicism and distrust grow in our core institutions.

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Nonprofits bring out the best in all of us.

The social sector represents an awesome force for expediting good works. It encompasses more than 1.5 million organizations, 13 million employees, 24 million board members, nearly 80 million volunteers, and hundreds of millions of donors from all different socio-economic backgrounds, who enthusiastically give. America’s greatness is rooted in its tradition of caring and sharing for one another and of communities of mutual support. Nonprofit leaders are ready to stand up and meet formidable challenges, and in doing so, open giant doors to a better world.

Nonprofit leadership FAQs

What is the difference between management and leadership?

Management focuses on supervising and supporting a team to help them accomplish assigned tasks. Leadership involves identifying the organization's vision, taking initiative, and uniting the team to rally everyone behind a shared mission. 

What are the qualities of a great nonprofit leader? 

Great nonprofit leaders possess an unshakable passion for their mission that organically inspires and empowers their teams to achieve ambitious goals. They also leverage emotional intelligence to forge deep connections and rise to meet adversity using creative problem-solving.

What are some ways to build trust around your nonprofit? 

Leaders can build internal trust by avoiding micromanagement and encouraging team-building activities that foster a highly connected, supportive work culture. Externally, you can ensure strong donor retention by actively listening to and incorporating donor requests and consistently over-delivering on your organizational promises.  

What are some strategies to motivate a high-powered nonprofit staff? 

• Provide on-the-job experience: Grant team members additional responsibilities and hands-on practice in fields they are passionate about.
• Offer educational courses: Utilize organization-designed or third-party learning platforms to help employees continually expand their professional skillsets.
• Foster connection through team building: Implement virtual step challenges, gamified learning, or online games to maintain a strong and engaging workplace culture.
• Avoid micromanaging: Trust your staff to execute their portions of the strategic plan while acting as an accessible, supportive resource.

What are some challenges facing the nonprofit sector in 2026? 

The most pressing challenge facing the nonprofit sector is compromised federal funding, which actively forces private philanthropy to step up and cover the escalating human service needs of at-risk populations. Compounding this severe financial strain is widespread societal division and polarization, making it increasingly difficult to bridge deep divides and unite communities for the common good. Finally, organizations must also navigate a landscape of growing cynicism, requiring them to actively overcome rising public distrust in core institutions to successfully achieve their missions.

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