A Defining Moment for Nonprofit Leadership

The year 2025 has brought unprecedented turbulence to the nonprofit sector. Political shifts, funding cuts, and widespread economic uncertainty have placed extraordinary pressure on executive directors, boards, and fundraising teams. In a recent episode of the Nonprofit MBA Podcast, host Stephen Halasnik sat down with Marc A. Pitman, founder of the Concord Leadership Group, to unpack the leadership skills and strategies that nonprofit executives need to thrive during these challenging times.

Funding Cuts and the New Reality

Nonprofits across the country are grappling with shrinking budgets as federal and state funding streams dry up. For many organizations, the sudden loss of large grants has left leaders scrambling to adjust. Pitman points out that donors, once comfortable making multi-year pledges, are now hesitant to commit beyond the short term. This instability has created a funding environment where nonprofit leadership must navigate constant uncertainty.

Yet, the answer is not to retreat. History shows that nonprofits that continue to invest in fundraising—even when donations dip—emerge stronger once crises subside. The instinct to scale back capital campaigns or even cut development staff is, according to Pitman, a costly mistake. Instead, leaders must double down, refining donor communication and ensuring fundraising remains a top priority.

The Pressure on Nonprofit Leadership and Staff

The current climate has also intensified the internal pressures faced by nonprofit leaders. Staff often expect organizations to take public stands on political and social issues, while boards may push back in the opposite direction. This leaves leaders caught in the crossfire, forced to balance mission-driven work with competing stakeholder demands.

Generational shifts further complicate matters. Pitman highlights that younger employees view work-life balance differently than older generations of nonprofit leaders. While seasoned executives may default to late nights and personal sacrifice, younger staff members are unwilling to accept burnout as the norm. This cultural gap requires leaders to model healthier boundaries while still ensuring organizational effectiveness.

The Power of Pausing Before Acting

In times of turmoil, leaders often feel pressure to react quickly. But both Halasnik and Pitman emphasize the importance of pausing, reflecting, and asking better questions before making decisions. A calm measured response by nonprofit leadership not only reduces chaos but also builds confidence among staff and donors. Pausing allows leaders to focus on execution rather than being swept away by crisis-mode decision-making.

Rethinking Strategy: From Panic to Purpose

Halasnik shares a leadership lesson from his own experience during the 2008 financial crisis. When his healthcare staffing company saw its industry cut in half, he gathered his team and asked: What do we want the company to look like in three to five years? This future-focused approach provided clarity, boosted morale, and transformed a period of contraction into an opportunity for growth.

For nonprofits today, the same principle applies. Rather than fixating solely on present challenges, leaders should articulate a vision for what they want their organizations to become once the current turbulence passes. This not only inspires staff but also reassures donors that the organization is resilient and forward-looking.

Values, Storytelling, and Organizational Culture

At the core of effective nonprofit leadership lies clarity of values. Pitman emphasizes that values should not just be words on a wall—they must be lived out through stories. Storytelling connects values to real-life actions, making them memorable and motivating. For instance, an organization that values compassion might highlight a staff member who went above and beyond to meet a client’s needs. Such stories make abstract values tangible and relatable.

Revisiting values, mission statements, and culture during times of upheaval can anchor organizations. Leaders must ensure that every staff member understands and embraces these guiding principles, particularly when difficult decisions about funding or programming must be made.

Practical Steps for Nonprofit Leadership Right Now

Both Halasnik and Pitman agree that nonprofit executives should focus on just two or three critical priorities during this period. At the top of the list is fundraising. Leaders should:

  • Re-engage major donors with direct, clear asks.
  • Avoid vague appeals; instead, specify exactly how much support is needed.
  • Resist the urge to cut development staff or professional training.

At the same time, leaders should take the opportunity to revisit organizational values, refine storytelling, and strengthen internal culture. This is not the moment for scattershot strategies; it is the moment for focused execution.

The Role of Support Systems for Executives

Leadership can be isolating, especially in crisis. That’s why support systems—peer groups, coaching relationships, or professional associations—are invaluable. Pitman notes that confidential spaces, such as peer cohorts or coaching sessions, allow leaders to process challenges honestly without fear of judgment. Even informal coffee meetings with other nonprofit executives can provide perspective, encouragement, and practical solutions.

For smaller nonprofits hesitant to invest in coaching or professional development, Halasnik cautions against being “penny smart and dollar foolish.” The long-term payoff of investing in leadership growth and external support often far outweighs the cost.

Authenticity and Donor Relationships

One of the most powerful takeaways from the conversation is the value of authenticity with donors. Pretending that “everything is great” erodes trust. Donors, especially those with business backgrounds, know that organizations face setbacks. Transparency about challenges—framed alongside a clear plan for the future—can actually deepen donor loyalty. In some cases, asking donors for advice, not just financial support, can strengthen relationships and open new doors.

Leadership as a Journey, Not a Destination

Both hosts remind listeners that leadership is an ongoing process of growth. Halasnik reflects on his own journey from being a “horrible manager” in his 30s to becoming a stronger, more balanced leader after years of hard work, coaching, and self-reflection. The message is clear: leadership skills are not innate—they are learned, practiced, and refined over time.

Nonprofit leaders should not expect perfection. In fact, Pitman stresses that even great leaders may only get it right half the time. Leadership is not a science; it’s an art. What matters most is the willingness to learn, adapt, and lead with integrity.

Taking Care of the Leader Within

Perhaps the most important reminder from the conversation is that leadership is unsustainable without self-care. Burnout serves no one—not the leader, not the staff, and certainly not the mission. Leaders must double down on activities that recharge them, whether it’s exercise, meditation, or simply a coffee with a friend. Nonprofit work is a marathon, not a sprint, and only leaders who prioritize their well-being will have the stamina to see their missions through.

 

About the Experts

Marc Pitman is a nonprofit leader, accomplished fundraiser, and long-time business owner. He is founder and CEO of Concord Leadership Group and has spent more than 20 years helping nonprofit executives, boards, and fundraising teams. He’s trained over 25,000 leaders worldwide, coached more than 120 CEOs and senior staff, and certified 44 graduates of his leadership skills training program. He’s the author of Ask Without Fear!® and The Surprising Gift of Doubt, and his expertise has been featured in NBC, Fox News, Al Jazeera, Success, and many others.

Stephen Halasnik is a Managing Partner at Financing Solutions and host of The Nonprofit MBA Podcast. Financing Solutions has been the largest provider of lines of credit to small nonprofits in the US since 2012.