Just like in the corporate world, a strong CEO at a nonprofit can truly make a difference in leading an organization to success. Just because the end goal of a nonprofit organization is more philanthropic than financial, top-tier nonprofits are still run very much like businesses and good leadership can go a long way towards driving that performance. Even salaries are starting to reflect the importance of a high-performing CEO — while average figures are still about 25% less than for-profits, they’re still averaging well into the six-figures.
That’s a bargain, with all of the qualities that a CEO needs to exhibit in order to be effective:
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They must truly believe in the organization’s cause.
A nonprofit organization’s employees are motivated not only by a salary and steady work, but also by the fact that they are contributing to the greater good and making a positive impact on the world. When a CEO can demonstrate a strong personal connection to the organization’s mission or a history of advocating for similar causes, they will be able to better connect with their employees and subsequently earn their trust and loyalty.
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They must actively solicit input and feedback from employees.
Most often, nonprofit CEOs direct their time and energy towards the big-picture side of running their organization: fundraising, budgeting, long-term strategic planning, consulting with the board. That’s a logical and worthwhile approach, but it does mean that employees lower down on the chain spend more time on the ground, giving them a close-up view of the impact of their work instead of an eagle-eyed one.
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They need to set clear and tangible goals for themselves and for the organization.
Nonprofit leaders are at risk of falling into the trap of thinking that their goals are inherently obvious. Perhaps that’s true in a broad sense, but that attitude can become troublesome when organizations fail to delve deeper and set more short-term, tangible, and data-oriented targets. An effective leader will increase accountability by clearly defining goals against which the nonprofit can measure its progress.
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They must make tough decisions.
Often, CEOs rise to the top of the management hierarchy because they are experts at situational analysis, understanding and interpreting the subtle nuances that come along with most difficult decisions. While being able to think in shades of grey may be useful in lower positions, though, CEOs need to think in black and white instead. Endless deliberation over imperfect options can be stifling for an organization, putting its operations on hold and lowering morale while waiting for clear answers. A strong decision-maker, on the other hand, will keep the pace of operations flowing smoothly.
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They have to keep up with the latest research.
No field is static, and just because a CEO has made it to the top doesn’t mean that they have learned everything there is to know. An effective CEO will challenge themselves to keep learning by keeping in touch with experts, staying on top of new research, regularly reading industry journals, and taking pride in keeping their skills and knowledge sharp.
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They need to have endless energy.
From business trips to conferences to overseeing daily operations, a nonprofit CEO’s schedule is always packed. Getting through the long days and weeks requires a significant amount of enthusiasm and stamina.
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They must know how to delegate appropriately.
The temptation is clear for CEOs to hold important work close: they’re good at what they do, and they often have overly high confidence levels about the sheer amount of work that they’re capable of taking on. However, subscribing to the “if you want something done right, you have to do it yourself” attitude can quickly take a toll on even the most capable leaders, causing them to feel underwater. Instead, the best CEOs are also good teachers, with the ability to train other company leaders to take on important tasks. This, in turn, will allow the CEO to better allocate their time on the tasks that only they can do.
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They need to be successful fundraisers.
Yes, the organization is a nonprofit, but superior financial performance means that more money can be invested back into both the organization’s operations and its service projects. Without a steady influx of funds from reliable donors, even the best CEO will struggle. An ideal leader will come to the organization with a strong network of donors that they work hard to maintain and build during their tenure.