Practice mission-focused leadership

Nonprofit leaders should use the organization’s mission as their guide when making decisions as they are responsible for implementing practices that further the organization’s impact on the community. If a decision is made that does not align with the mission, mission drift can creep in which negatively impacts the organization’s ability to fulfill their mission. In my experience, compromising decisions that do not align with the mission are often made when leaders choose to accommodate a funder’s request that they would not have otherwise considered just to receive their funding. A nonprofit leader has a duty to decline or redirect funder requests that do not align with their values in order for the organization to be the most successful. In these situations it is better for the overall wellness of the organization to kindly decline, then offer to connect them to another organization where their gift would be more impactful.

Foster a positive organizational culture

Employees in the workplace want to feel valued. In the nonprofit sector, there are many stresses with lower pay and high rates of burnout. Prioritizing employee wellness is a simple way to show appreciation and cultivate a positive work culture. Often, higher employee satisfaction increases retention. Due to the often high turn-over of staff in the sector, retention is an asset. Having consistent staff saves the organization money rather than consistently expending resources on hiring. When hiring, consider prioritizing candidates who are resilient and innovative. Staff that possess these qualities and are passionate about the organization’s mission are driven to creatively respond to the frequent changes in nonprofits.

Promote fiscal responsibility

Fiscal responsibility refers to the duty to ethically and effectively implement financial management strategies. This process needs to start with nonprofit leaders evaluating the past, current, and projected economic standing of the organization. It would not be successful to blindly implement financial management strategies. Knowing where we have been, where we are now, and where we are going creates a roadmap for leaders to follow. Some traditional practices such as budgeting are necessary, but nonprofit organizations also need to remain adaptive in how they manage financial resources. Avoid relying on a single funding source. Diversifying income sources will ensure that the organization would sustain if one source should no longer be available. Implementing these solutions through a fiscally responsible lens should ensure that the financial management strategies are ethical and effective in cultivating stability.

Strengthen stakeholder relationships

There is a great value in practicing intentional stewardship efforts with stakeholders. Investing in stakeholder relationships allows the organization to connect with those supporting their organization, both internally and externally. Effective stewardship efforts should be individualized where the donor feels seen rather than “another fish in the pond”. This can look like small, simple acts such as sending a personalized letter to major donors, highlighting gifts on social media, or holding volunteer appreciation events. The hope is that when stakeholders feel valued and appreciated, they will have the desire to support the organization long-term. This support is not limited to monetary contributions as they can also support the organization by sharing social media engagements and spreading awareness of the organization’s mission with their peers. Awareness of the organization can also be accomplished by engaging marketing strategies such as mailers, impact reports, email, and having a consistent presence online.

Measure and monitor success

There should be clear, measurable goals that when met are indicative of the organization’s success in fulfilling their mission. Leaders should be consistently completing audits to evaluate if resources are being maximized as well as being allocated in a way that aligns with the organization’s mission. Should there be a mismanagement of resources, this also allows the opportunity to pivot and adapt if a financial goal is not being met promptly. The earlier this issue is identified and corrected, the lower the negative impact it may have on the organization’s financial wellness.

Tori Lund is a 2025 graduate of the Master of Nonprofit Leadership and Management program at Arizona State University and has earned the Certified Nonprofit Professional (CNP) credential, a nationally recognized certification in nonprofit management. Tori also holds a Bachelor’s degree in Forensic Psychology from ASU, where she graduated in 2020 and was able to begin her career in behavioral health where she found a deep passion for supporting survivors of domestic violence. This commitment led her to transition into the nonprofit sector, where she has focused on empowering staff and enhancing support systems for survivors. Looking ahead, Tori plans to continue her advocacy for survivors while leading teams dedicated to providing compassionate and effective support.

Image by Lillian Finley

Get your nonprofit's finances on solid footing with the Fundraising and Sustainable Financial Management Certificate

The Nonprofit Fundraising and Sustainable Financial Management Certificate is for individuals who wish to gain additional knowledge and skills in fundraising, strategic planning, board governance, financial management and more!
 

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