Illustration of writing an article on a laptop

ASU Lodestar Center Blog

Research and recommendations for effective, day-to-day nonprofit practice from ASU faculty, staff, students, and the nonprofit and philanthropic community.


scales balancing two hands shaking for accountability and a compass for mission

Trust is an essential ingredient for nonprofits to be sustainable and successful. A 2025 survey found 57% of Americans highly trust nonprofits, though trust in specific organizations may vary. Public perceptions of how trustworthy your nonprofit is come from the good you do (mission) and how well you do it (accountability). While mission is the heart of every nonprofit, what does accountability entail?


Accountability should be thought of in two ways: accountability to whom and accountability for what. In terms of whom, three groups—funders, staff, and beneficiaries and communities—expect nonprofits to be accountable to them. Accountability for what includes finances and governance, which focus on compliance, and performance and mission, which are about demonstrating short and long term progress toward addressing social problems. Accountability can actually be made strategic by seeking and sharing information to help a nonprofit achieve its long-term goals.
Since the public expects higher ethical standards from nonprofits than commercial organizations, falling short on either accountability or mission can lead to diminished impact and organizational collapse. In the face of limited financial and human resources, how can nonprofit leaders balance accountability efforts and mission-focused work?

Assess trust levels

Making wise decisions about allocating resources to mission or…

Read more

piggybanks holding freeweights

Small nonprofits sit at a powerful yet precarious point in the social sector. They are deeply woven into the communities they serve, often addressing needs that larger institutions overlook. Yet despite this proximity to impact, they remain the most underfunded and structurally disadvantaged segment of the nonprofit landscape. Data from Candid (2024) shows that small nonprofits make up more than 80 percent of the sector but receive less than 15 percent of total philanthropic dollars annually. This mismatch reveals a core tension: organizations doing some of the most meaningful community works are also the ones operating with the fewest resources. Understanding how to lead effectively under these conditions is crucial—not only for the organization's survival but also to ensure community-centered nonprofits keep advancing social change.

For smaller nonprofits, constraints are not simply financial—they shape staffing, infrastructure, planning, communication, and long-term stability. The CEO of a small nonprofit often juggles multiple roles: strategist, fundraiser, data manager, communications lead, and community advocate. Yet these challenges offer important leadership opportunities.

Three principles consistently strengthen a small nonprofit’s ability to navigate limited resources:

  • Strategic transparency - Transparency is an asset, not an administrative…
Read more

Graduation cap sitting on a desk with a diploma hanging on a wall

Nonprofit organizations - once operated as volunteer-run grassroots operations - have become a significant part of mainstream society, growing faster than the private and public sectors as a percent of the total workforce in the U.S. External demands for accountability combined with contemporary social and economic barriers to success, have made the professionalization of the sector more necessary than ever.

Professionalization, which includes certifications and advanced degrees, benefits nonprofit organizations through improvements in strategy, innovation, and effectiveness - all of which contribute to an organizational culture that supports the needs of staff.

Workers in the sector are motivated by a desire to “do good” in society and therefore hold the passion and ambition to make improvements to systems and processes that create social change. Significant stressors exist, however, as revealed by the COVID-19 pandemic and continuing economic and political unrest. The intrinsic value of work in the nonprofit sector is challenged by increased cost of living and burnout from the growing demands on workers. Nonprofit organizations must therefore respond to support their workers and their career goals if they are to continue to deliver the high-quality, community-based solutions that the sector is known for.

But just as necessary as the community-based approach is to the success of a nonprofit, so too is the need…

Read more

disruption

Nonprofits must be ready for constant adaptation. Social, economic, and environmental forces continue to shape how charitable organizations operate, both immediately and long-term. To stay relevant, nonprofits must strengthen internal supports, ready themselves for external pressures, and be ready to pivot quickly when challenges arise.

All roads lead to funding

Funding is the most consistent indicator of nonprofit stability. Organizations that rely too heavily on few revenue streams risk losing large amounts of income quickly, especially when economic conditions shift. Unrestricted funding gives nonprofits flexibility to respond to urgent needs and invest in long-term sustainability. Feeding America is a prime example, which boasts 96% of its revenue from private donors. The sheer amount of different donors allows the organization to survive changes in the economy more effectively than nonprofits that do not prioritize diversified funding sources.

Staffing is another challenge for nonprofits. Nonprofit employees often handle multiple roles, leading to burnout and high turnover. Tight operating budgets limit the ability to raise salaries or expand benefits, and volunteers cannot always fill the gaps. 

Effective program delivery is important to a nonprofit’s operation. When services are inefficient or inaccessible, resources are wasted. Organizations must build accessibility components into programs to…

Read more

Intergenerational volunteering

Nonprofits have a unique opportunity to bridge generational gaps and foster a lasting culture of giving. By creating inclusive programs, providing hands-on experiences, and forming strategic partnerships, organizations can guide families in building a legacy of compassion and social responsibility. When families work together to give back, they not only strengthen their own bonds but also contribute to the resilience and development of their communities. Passing on philanthropic values ensures that the spirit of giving remains vibrant, creating a ripple effect of positive change that endures across generations.

Storytelling

One of the most effective ways organizations can achieve this is through storytelling. By curating and sharing narratives of families who have engaged in philanthropy, nonprofits can inspire others to join the cause. Personal stories highlight the importance of giving and demonstrate its tangible benefits, making it easier for younger generations to understand the significance of their contributions. Showcasing these stories through newsletters, blogs, and social media platforms enables organizations to reach wider audiences and encourage a culture of giving within families. Events where families can come together to share their experiences in giving back to the community provide meaningful connections and reinforce the idea that service is a lifelong commitment.

Serving together

Read more

ASU Lodestar Center Blog