Developing leaders and building a deep bench of potential successors in non-profits may seem like a tall order, but it’s worth every ounce of effort. By addressing control freakery, cultivating a culture of learning, creating clear pathways for growth, developing various leadership skills, planning for succession, leveraging external partnerships, and prioritising diversity, you can build a leadership pipeline that’s strong, resilient, and ready for whatever challenges lie ahead. In today’s podcast, Elizabeth Weber from Weber Business Services and Stephen Halasnik from Financing Solutions discuss developing leaders and leadership depth in non-profits.

A Spotlight on Developing Leaders and Leadership Depth in Nonprofits

Leadership is the backbone of any organisation. It’s even more essential in the non-profit sector because the stakes are often higher — not because of profit, but for the people and causes that non-profits champion. Developing great leaders in nonprofits isn’t just about finding the right person for the job today; it’s about ensuring there’s depth of talents on the bench, ready to step up when the going gets tough. Thus, developing leaders and leadership depth in nonprofits must be perceived as a serious business.

In this article, let’s walk down the lane of what it takes to grow leaders and build leadership depth in non-profits, so that when the winds of change blow, your organisation remains steady.

Why the Leadership Needs of Nonprofits are Unique

Non-profits, by their very nature, work on limited budgets and are driven by a mission to create change. This makes the role of a leader particularly challenging because they need to inspire with heart, manage resources like a wizard, and juggle various priorities without dropping the ball. Hence, many nonprofits struggle with high turnover rates, minimal funds for training, and a lack of formal succession planning. As a result, building a pool of leaders who can “hit the ground running” is essential for long-term success and sustainability.

In the non-profit world, leadership isn’t just about who sits at the top; it’s about creating a strong bench of people who are ready to lead at every level. 

What are the Common Challenges to Leadership Development in Nonprofits?

Some of the various challenges that complicate developing leaders and leadership depth in nonprofits are as follows:

Control Freakery

Following years of experience and studies, this appears to be the number one reason many organizations including nonprofits fail in leadership development.

Leaders who micromanage or struggle to delegate can stifle the growth of potential leaders around them. When individuals feel they don’t have the space to make decisions, take ownership, or even fail and learn from their mistakes, their leadership potential remains untapped. As the saying goes, “If you want something done right, you don’t always have to do it yourself.”

Limited Resources 

One of the most significant hurdles facing nonprofits is the scarcity of financial resources. With tight budgets and funds often allocated primarily to programmatic work, professional development opportunities for staff can be deprioritized. So, this leads to a lack of investment in leadership training and skill-building initiatives, which are essential for nurturing leaders who can effectively pilot the affairs of the organisation.

Mission-Driven Focus

Generally, nonprofit leaders are typically individuals who are deeply passionate about their cause. While this passion is important, it can sometimes overshadow the need for practical management skills. Therefore, finding candidates who not only resonate with the organization’s mission but also possess the necessary leadership competencies—such as strategic thinking, conflict resolution, and team management—can be a complex challenge. This dual requirement may restrict the pool of potential leaders, making it more difficult for organizations to identify and nurture the right talent.

Succession Gaps

Many non-profit organizations do not have well-defined succession plans in place. As a result, when a leader departs, whether through retirement, career advancement, or unforeseen circumstances, organizations may face a period of instability. Without a clear framework for transitioning leadership roles, these gaps can leave the organization vulnerable and hinder its ability to maintain momentum. Hence, establishing a proactive succession plan is vital to ensure that future leaders are prepared and that the organization’s mission continues seamlessly.

How Do You Develop Leaders and Leadership Depth in Your Nonprofits?

Address Control Freakery

Addressing control freakery requires a conscious shift in leadership behaviour. As a leader, you need to let go of the reins and trust your teams, encouraging collaboration and decision-making at all levels. Empowering others will lighten the load for current leaders and create an environment where emerging leaders can grow and thrive.

Establish Clear Job Descriptions for Each Role

As simple as it sounds, clear job descriptions are a vital tool in developing leaders and leadership depth in non-profits. They not only define expectations but also help employees understand the skills, behaviours, and experiences required to succeed and progress within the organization. In non-profits, where roles can often blur due to limited resources, defining each position’s scope and responsibilities is necessary for both current and future leaders.

Define Roles and Responsibilities: Ensure each job description outlines the responsibilities, skills, and experience needed. This way, employees know what is expected of them and what they need to work toward.

Incorporate Leadership Competencies: Include competencies such as decision-making, team-building, and community engagement in job descriptions for roles where leadership skills are essential.

Create a Roadmap for Growth: A good job description can serve as a mini roadmap, helping employees identify areas for personal development. By making potential growth pathways visible, you’re setting up a leadership pipeline where employees can prepare for their next steps.

Prioritise a Culture of Continuous Learning

You must create an environment where learning is valued as this goes a long way in developing leaders and leadership depth in non-profits. Note that this doesn’t mean having expensive training programs; it’s about encouraging curiosity, and a growth mindset, and supporting employees who want to develop their skills. You can achieve these by offering:

Regular Training Opportunities: Offer training in areas critical to non-profit work, like fundraising, team building, and program management.

Mentorship Programs: Pair up experienced leaders with those looking to grow. There’s nothing like learning the ropes from someone who’s been around the block.

Peer Learning and Exchanges: Work with other non-profits to create “exchange” opportunities, allowing employees to learn from peers in similar roles at different organizations.

Define a Clear Pathway for Growth

There’s a popular saying “Without a roadmap, you’re just wandering.” Many nonprofits don’t have clear pathways for career progression, leaving talented staff wondering if they have a future in the organization. A structured path to leadership helps staff see what’s possible and motivates them to strive for it. Hence, a clear pathway is necessary for developing leaders and leadership depth in non-profits. You can achieve this by:

Transparent Promotion Criteria: Make what it takes to move up within the organization crystal clear.

Role Rotation Programs: Give employees the chance to try different roles within the organization. This helps them develop a range of leadership skills and keeps things fresh.

Individual Development Plans: Sit down with each employee to discuss their goals, map out a plan, and set milestones. It’s the classic “slow and steady wins the race” approach to growth.

Develop Skills Beyond Technical Know-How

Being good at the job is one thing, but leading a team effectively takes a whole other set of skills. Non-profit leaders need to have a high level of emotional intelligence, adaptability, and the ability to see the big picture — not to mention the people skills to inspire and motivate others.

Emotional Intelligence Training: “People may forget what you said, but they’ll never forget how you made them feel.” Leaders need to know how to listen, empathize, and resolve conflicts.

Adaptive Leadership Development: In the ever-changing non-profit landscape, leaders need to “roll with the punches.” Adaptive leadership training helps them stay flexible and make quick decisions.

Communication Skills: Leaders must learn to inspire trust, rally the troops, and advocate for the organization’s mission. The ability to “talk the talk” is as important as “walking the walk.”

Emphasize Succession Planning and Knowledge Sharing

Too many non-profits wait until the eleventh hour to start thinking about succession. Having a plan in place is like having a life jacket ready before the boat starts rocking. Leadership transitions are inevitable, and it’s better to be prepared than to be left high and dry. You must do the following:

Identify Future Leaders Early: Keep an eye out for potential leaders across the organization, and start involving them in key projects.

Cross-Training: Make sure knowledge and skills aren’t siloed in one person. When key tasks are shared across the team, the organization can keep sailing smoothly, even when leaders leave.

Emergency Leadership Plans: Establish a contingency plan for sudden transitions to ensure that the organization doesn’t skip a beat.

Build External Partnerships for Broader Learning Opportunities

No organization is an island. Partnering with academic institutions, leadership programs, or peer organizations can expand access to training and development without breaking the bank.

University Partnerships: Universities often have programs for executive education that can be beneficial and affordable. They may also have internship programs that bring fresh energy and ideas into the organization.

Non-Profit Leadership Programs: Look for sector-specific leadership programs provided by foundations or non-profit associations.

Shared Resources: Pool resources with other non-profits for workshops or training sessions, creating a win-win situation.

Commit to Diversity and Inclusion in Developing leaders and leadership depth in non-profits

A strong leadership team reflects the diversity of the community it serves. Building an inclusive leadership pipeline ensures a variety of perspectives and helps the organization make better, well-rounded decisions. This also helps develop leaders and depth of leadership in non-profits.

Diverse Hiring and Promotion Practices: It’s easy to overlook biases, so make it a point to have an open-minded recruitment and promotion process.

Cultural Competency Training: Providing training in cultural awareness helps leaders better serve and connect with diverse communities.

Internal DEI Programs: Programs that focus on diversity, equity, and inclusion within the organization pave the way for individuals from all backgrounds to find a path to leadership.

Measuring Success and Staying Accountable

A great plan only works if it’s followed through. It’s essential to keep an eye on progress and make adjustments as needed.

Retention and Turnover Rates: A low turnover rate can be a strong sign that leadership development efforts are working.

Employee Engagement Surveys: Ask employees regularly how they feel about their growth opportunities, their satisfaction with leadership, and any concerns.

Leadership Performance Reviews: Assess leaders based on both their role-specific skills and their alignment with organizational values. Look for growth and identify areas for improvement.

Impact Metrics: Link leadership development efforts to concrete outcomes, like program success, fundraising achievements, or community impact.

About Our Guest, Liz Weber From Weber Business Services LLC

Liz Weber is a leadership, strategic and succession planning consultant, speaker, and author. Liz helps her clients focus on the right things at the right time to get the right impact. She understands the unique challenges of non-profits and associations. She has consulted with various non-profits and has served on various association boards at the local, state, national, and international levels, and has various awards for her service.

Learn About Stephen Halasnik

Stephen Halasnik co-founded Financing Solutions, the leading provider of lines of credit for nonprofits and church financing. The credit line program for nonprofits & churches is fast, easy, inexpensive, and costs nothing to set up, making it a great backup plan when cash flow is temporarily down. Mr. Halasnik is also the host of the popular, Nonprofit MBA Podcast. The podcast brings experts to discuss fundraising, nonprofit grants, executive director leadership, nonprofit boards, and other important topics. You can learn more about the nonprofit line of credit program here or call 862-207-4118.