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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.


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When asked about issues facing nonprofit organizations, leaders in the field list an array of topics. Of significance in theory, but often neglected in practice, is taking steps to prepare in advance for leadership transitions. Afterall, if a new nonprofit is just getting their momentum, why stop to think about changes which are most assuredly in the far distance?


Prepare now for the future

The only future certainty is change. Because of this, it is imperative for organizations to prepare now. One of the most important steps is to incorporate leadership change specifics early in the life of the organization. This is constructed by the board of directors and executive director and lays out plans for both emergency and non-emergency situations. It is imperative for a number of reasons.

Preparation provides stability

When stakeholders view an organization in flux, it is easy to look for weaknesses. An organization that has taken steps to create leadership transition strategy in advance conveys foundational stability, predictability and preparedness, ability to navigate change while continuing their work, and leadership which has included the entire organization in the process. These are qualities which reassure all types of donors that the organization is working to avoid mission drift, while maintaining transparency and accountability.

The first steps involve an organization’s board…

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cybersecurity

In today’s increasingly digital world, nonprofit organizations are forced to adapt to new technologies in a way that remains ethical and mission-driven. Many new technologies, such as artificial intelligence, can provide benefits to nonprofit organizations, given the accessibility among many free-to-use platforms, as well as potentially serving as the power behind many fundraising efforts, community outreach programs, and marketing campaigns. Such tools can help organizations operate more efficiently even in the face of limited resources. While the integration of these technologies for nonprofit organizations is seemingly useful, nonprofit leadership and management must tread carefully in the face of potential risks to ensure long-term sustainability as well as to avoid any potential damage to an organization’s reputation. Technology can assist by streamlining processes, summarizing data, and strengthening communication, yet without the proper safeguards, these same tools can result in severe consequences, having negative effects on the overall success of an organization.

Data privacy

One of the most pressing challenges faced by nonprofit organizations when taking advantage of new technologies is the threat of cybersecurity risks and potential data breaches. Given that many nonprofits help care for communities in need, specific personal data might be necessary for collection in order for the organization to better serve the community's needs. In this case,…

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Illustration of two hands shaking in front of a bridge

Considering the many hats the nonprofit sector wears across subsectors, partnerships, and constituencies, its operating environment presents new challenges for leaders on top of already full plates. The impacts of political polarization are not peripheral to nonprofits but an operational reality that influences any aspect of mission delivery. In practice, these new challenges for nonprofit leaders look like navigating administrative funding shifts across all government levels, toeing the line of advocacy engagement, and managing ongoing work to sustain community engagement through transparent, consistent services. To navigate a polarized environment successfully, nonprofit leaders need to prioritize strategic trust in these uncertain and divisive times.

Polarization is an operational and strategic risk

Government shutdowns, budget cuts, and partisan standoffs are only some of the polarized outcomes the nonprofit sector faces, and all of them have real-time impacts on cash flow, service delivery, and increased mission strain. As nonprofits pivot away from government funding, the additional pressure on individual donors, coupled with individual political affiliations, may cause some donors to redirect their philanthropy away from organizations perceived as “too controversial.” Staff burnout continues to be a challenge for the nonprofit sector, as policy decisions are made at home and in the Capitol. Even so, unstable funding, rising demand for services, and…

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A group of people with one person raising their hand

Marginalized communities are commonly supported through nonprofit organizations, and in the Native American communities this holds true. While native nonprofit organizations within their own tribal boundaries are often viewed as legitimate, since they are stationed directly in the geographic region of the root cause or population they serve, what about the ones outside of reservation lines? Maybe, there are even questions of nonprofit within native communities that are questionable in regards to their operations? Nonprofit organizations work to provide a service for a specific demographic or community, how do we make sure this is happening?

Experience and observation of nonprofit organizations rushing to provide a service to a specific native american community has led me to think harder about how important accountability is. As Hopi I can safely say that my people are known to be guarded, hesitant to let “outsiders” into our villages due to the uncertainty of what one’s true intention is. A part of this is due to the unique culture we live and our history which has taught us that we are not immune to invasion or attempts to overthrow our Hopi practices. While invasion and takeover are less prevalent in this day and age, we are still cautious of modern day exploitation. We recognize that a majority of organizations or representatives of organizations do not have negative intentions, but we also recognize when we are being taken advantage of.

Organizations…

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Illustration of a tired man sitting at a desk surrounded by piles of work

The nonprofit sector operates on an uncomfortable contradiction. We expect employees to carry out some of society’s hardest and most emotionally complex work, yet we often compensate and support them as if passion alone can sustain them. Today’s nonprofit workforce crisis makes one truth impossible to ignore: employee compensation and perceived sense of value constitute core infrastructure for mission impact.

Across the country, human service nonprofits report exceptionally high vacancy rates. Entry-level and direct-service roles remain unfilled for months at a time, programs operate at reduced capacity, and remaining staff shoulder overwhelming workloads. When organizations struggle to recruit and retain staff, the consequences often ripple outward. There are fewer clients served, longer waitlists, delayed services, and burnout that pushes even more employees out the door.

We tend to frame this as a funding problem. And yes, funding does matter. But this moment is also an opportunity to re-evaluate how nonprofits define “value.” Many organizations can no longer depend on altruism as a recruitment strategy. A sustainable nonprofit is one that regards their workforce with the same seriousness as programming, fundraising, and governance.

Compensation is more than a paycheck

Compensation is often misunderstood as simply “more money.” And to be fair, at first it is. Financial compensation offered to an…

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ASU Lodestar Center Blog