Tis the season…to reflect on what works and what can be improved.

Tis also a good time to throw out the ‘same old, same old’ and make a real impact on 2025 and beyond.

So as we wind down the year, maybe it’s time to rethink the structures that guide nonprofits. Traditional leadership models often mirror corporate hierarchies, which may not suit the agile and inclusive environments we need to create in the nonprofit sector. But what if we envisioned a leadership style that empowers, includes, and inspires?

Before we proceed, let me hit on two points that you may have heard me discuss that could seem contradictory to the above statements:

• There are several facets of corporate B2B sales (and marketing) that parallel fundraising, both on the positive side and negative side. I do believe that the long-term relationship building strategies of sales done right can have a big influence in the nonprofit world. I do not, however, believe nonprofits should be ‘corporatized’.

• The unfair overhead narrative that restricts investment for nonprofits is a double standard that doesn’t apply to the for profit world. The same encouragement for spending money to build infrastructure that leads to enhanced success, impact and sustainability should apply to both sectors. That does not mean nonprofits should be set up like corporate entities; they should just be given the ability to build a model that enhances their impact and growth.

Evolving Leadership Models

In a world where challenges and opportunities change rapidly, adaptive and inclusive leadership can dramatically enhance an organization's responsiveness and innovation. Moving away from a strict hierarchy allows more voices to be heard, increases engagement, and distributes responsibility, which can lead to faster and more effective decision-making. This is the type of versatility that’s needed in the nonprofit sector today in order to tackle the myriad of ever-changing challenges and silence the noise.

This is especially true in nonprofits that have boards comprised primarily of people from the corporate world. The disconnect between boards and the front line staff can be staggering and stifling. It is the number one concern I hear in speaking with fundraising and development staff. Silos get created between departments and block progress. Goals, mission and approach are not clear, leading to missed opportunities, an uninspired donor base, fundraiser stress and burnout, and long-term mission risk.

With the approach to philanthropy changing rapidly with the times, world events and generational differences, a structure that relies more heavily on input and leadership from those who interact the most with donors, prospects and the communities served makes the most sense.

Actionable Strategies:

1. Empower Team Leadership: Develop a structure where teams are encouraged to take leadership roles on projects. Implement leadership training programs that focus on skills such as decision-making, empathy, and strategic thinking. Encourage senior leaders to mentor others without taking over their projects. In short, let the people who understand the mindset of their supporters forge the strategic path! Allow them to not only blaze the trail, but lead the journey as well.

2. Diversify Your Leadership: Actively recruit for diversity in your leadership team, considering not just racial and gender diversity, but also diversity in skills, backgrounds, and ways of thinking. This broader range of perspectives can lead to more creative and effective approaches to problem-solving. A mix of leaders from outside and inside the sector is likely more effective than all of one or the other. Significant representation from the communities served is imperative to understanding motivators, needs and desired messaging. Mix it up. Different viewpoints lead to better solutions.

3. Foster Open Communication: Implement open forums and regular town halls where staff at all levels are encouraged to speak up. Utilize anonymous feedback tools to ensure that you’re hearing honest feedback from your team, and act on that feedback where feasible. In other words, learn from the people that are doing the work. The result in terms of both staff motivation and improved strategy will be readily apparent. This is not about meetings or surveys. It’s about truly creating a culture where speaking up is not only encouraged, but rewarded.

Mirror Mirror On The Wall…

During this season of reflection, consider the different leadership qualities you have observed in others over the past year. How can these inspire changes in your organization’s leadership approach? How can you foster these qualities across your team? How can you ensure that your organization is inclusive in the input it gathers that steer mission strategy?

As with all change, it starts with reflection. Honest, raw reflection. It’s not easy for a Board to evaluate it’s effectiveness, but it’s imperative. It’s not easy for a CEO to ponder if their leadership style and the culture they’ve built is right for the times, but it’s imperative. It’s not easy for a fundraising and development leader to look internally to consider whether they’ve pushed their team to become too transactional and not enough transformational, but it’s imperative.

If every nonprofit doesn’t take the time and care for a brutally honest assessment, the ability to move forward is stifled. And with the rapid pace of change happening right now, an inability to move forward is the same as quickly moving backwards.

It’s Gonna Be OK - Here’s Proof

This Week’s Quote of the Week

Take some time. Brainstorm different ideas. Think deeply about what can work better.

The time is NOW. Change is needed, even if you hit your fundraising goals in 2024. The organizations that modify their structure to be able to quickly adapt to rapid and sometimes unexpected change are the ones that will flourish into the future.

Because one thing is certain - unexpected change WILL happen, probably multiple times in the next year.

And here’s a funny thing about organizations. Change is not inspired by the ‘organization’, which is just an entity. Change is inspired by the people that make up the organization.

People like you.

Thanks for reading. Let’s drive positive change together, starting right now!

Dan

P.S. I’d love to speak with you about how I can help you change in 2025. If you’re up for a chat, book a time on my calendar below.