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The New Leadership Skills for a Thriving Non-Profit Sector

Writer: kawkapckawkapc

Updated: 2 days ago

As leaders and changemakers, we often find ourselves at a crossroads, standing between what is and what could be. We see the cracks in the systems we navigate, the outdated structures that no longer serve, the biases woven into policies, workplaces, and cultures.


And yet, we also see the brilliance, the ideas worth keeping, the values worth strengthening, and the people worth elevating.


So, what else is possible?


How do we challenge the status quo in a way that is collaborative, sustainable, and just? How do we preserve what is best while reinventing what is biased, exclusive, and broken? How do we thrive, and help others thrive, without burning out in the process?


The Power of Questions: Change Begins with Curiosity


Too often, we rush toward solutions, feeling the pressure to have immediate answers in a world that values certainty. But true transformation begins not with answers, but with beautiful questions, questions that open doors, expand perspectives, and invite new possibilities.


It’s okay not to know right away. In fact, it’s powerful. Asking the right questions is an act of leadership. It slows us down just enough to see what we may have overlooked, to listen more deeply, and to create space for the unexpected.


Some of the most powerful shifts in history began not with a solution, but with a question:


  • What if work was designed for people, rather than people for work?

  • What would leadership look like if power was shared, not hoarded?

  • Who isn’t at the table, and what wisdom are we missing?


When we stop trying to "fix" everything immediately and instead sit with the right questions, we open the door to more thoughtful, inclusive, and sustainable solutions.


Reimagining the Non-Profit Sector


As non-profit leaders (social-profit!), often empowered by the insights of thinkers like Dan Pallotta, we know the challenges we face are even more complex. We’ve questioned the very existence of the different playbook typically used for charities and nonprofit organizations. Pallotta’s work has challenged us to rethink fundamental aspects of how nonprofits are funded, structured, and held accountable.


Activist and fundraiser himself, Dan Pallotta calls out the double standard that drives our broken relationship to charities. Too many nonprofits, he says, are rewarded for how little they spend, not for what they get done.


Instead of equating frugality with morality, he asks us to start rewarding charities for their big goals and big accomplishments (even if that comes with big expenses).

In this bold talks, he says:


Let’s change the way we think about changing the world.

Nonprofit leaders wear many hats, often stretched too thin between financial management, people development, donor and government relations, staff and volunteer training, and organizational development. Despite all of this, you are often criticized and labeled as “overhead,” a term that diminishes the importance of infrastructure and organizational health.


But what if we stopped measuring value by how little we spend on infrastructure and started measuring it by the impact we create? What if we invested in our people, our systems, and our capacity to do good, instead of apologizing for it?


There’s still a pervasive mindset that running a nonprofit should look like operating a lean startup, cutting costs at all costs to ensure more money goes directly to "the cause."


But this mentality often leads to under-resourced organizations that burn out their people and are unable to scale their impact. To truly thrive, nonprofits must be allowed to invest in themselves, building the capacity they need to support both the mission and the people behind it.


Overhead Costs: Rethinking Value and Sustainability


One of the most damaging myths in the nonprofit sector is that overhead costs should be as low as possible. Overhead, defined as expenses related to running an organization, like salaries, technology, and infrastructure, has historically been scrutinized as an indicator of inefficiency. But Pallotta argues that overhead is necessary to create lasting change.


When we keep overhead artificially low, we hinder our ability to build strong teams, develop sustainable systems, and innovate.


Nonprofits need robust infrastructure to be impactful. The idea that spending on people and resources is inherently “bad” keeps organizations from investing in the long-term health needed for real change. By removing the stigma around overhead, we empower nonprofits to reinvest in their capacity to lead, grow, and adapt.


In fact, investing in overhead costs often results in higher efficiency, stronger programs, and greater impact. Nonprofits should not be penalized for investing in their future by developing strong back-office teams and systems that can enable more effective program delivery.


“Our generation does not want its epitaph to read, 'We kept charity overhead low.’ We want it to read that we changed the world.” - Dan Pallota

Check out the "I'm Overhead" campaigns from Charity Defense Council.


Marketing Budgets: Promoting the Mission, Not Just the Message


Another major issue Pallotta highlights is the tendency to underfund marketing and fundraising efforts in the nonprofit sector. Many nonprofits are hesitant to invest in marketing, fearing it will be seen as wasteful or selfish. However, in the age of digital media and the rise of global connectivity, effective marketing is essential for raising awareness, engaging stakeholders, and driving change.


Marketing is not just about fundraising, it’s about telling the story of the organization and its mission in a way that resonates with people, engaging a wider audience, and building relationships that can sustain the organization’s efforts for years to come.


When marketing budgets are cut, nonprofits lose the ability to communicate their value proposition, which ultimately affects their ability to attract donors, volunteers, and supporters.


In Uncharitable, Pallotta argues that the same rules that apply to successful businesses should apply to social-profit organizations.


Businesses spend significant portions of their budgets on marketing to increase visibility and sales, yet when a nonprofit does the same, it’s seen as a “luxury” rather than a critical investment.


To build a movement for social good, nonprofits need to invest in telling their story in a way that creates lasting connections and inspires people to act.


Calm waterfront at sunset with a pink sky. Distant silhouettes of ducks float on the water. Hills line the horizon, creating a serene scene. Image by Monika Kawka

Thriving Non-Profit Sector?


To truly reimagine the future of the social-profit sector, we must begin by dismantling outdated ideas around overhead costs and marketing budgets. Rather than seeing these as “expenses,” we should view them as investments in growth, investments that will ultimately enhance the ability of nonprofits to fulfill their mission.


Pallotta’s vision challenges us to embrace sustainability, invest in leadership and infrastructure, and view nonprofit management with the same rigor and ambition as for-profit organizations. By redefining what success looks like, we give nonprofits the space to innovate, grow, and scale their impact on a larger scale.


In this reimagined future, new leadership paradigms are required. The traditional approach to leadership is no longer enough. Nonprofit Executive Directors need to cultivate creative leadership, an approach that draws on imagination, empathy, and innovative thinking to navigate complexity and inspire change. These leaders must not only lead organizations but also lead themselves, by embracing new skills that support their well-being, and long-term sustainability.


This is why nonprofit leaders need to prioritize self-care, emotional resilience, and self-advocacy to show up sustainably for their organizations. To fulfill their mission, they need the capacity to stand up for themselves, ensure their needs are met, and lead with strength and clarity.


Developing the skills to sustain your energy, without burning out, is just as important as the strategic decisions you make for your teams.


If we’re to create the kind of transformative social-profit organizations that Pallotta envisions, we must redefine leadership, ensuring that nonprofit leaders have the tools, support, and strategies to thrive personally and professionally.


It’s time to reframe nonprofit leadership, not as a mission-driven role that demands personal and financial sacrifice, but as an opportunity to cultivate a vital, innovative, and sustainable leadership journey.


When leaders are supported and fulfilled, their well-being extends to their loved ones and, ultimately, to the present and future beneficiaries of their programs.


Shifting an Entrenched Culture: Leadership That Heals


Are you an ED facing the challenge of needing to shift the culture in your organization but feeling lonely and unsupported? I hear you. Maybe you stepped into the role after a long-serving leader with an outdated leadership style, leaving you with the challenge of fixing what feels entrenched. You’re not alone in this.


In many cases, the culture that needs changing feels stuck, and the work environment has become resistant to the kind of growth that’s necessary for transformation.


Sometimes, well-intentioned leadership concepts, like psychological safety, are misunderstood, creating a comfort zone that lacks accountability. While it might feel safer, this space can also breed entitlement and complacency, leaving little room for innovation or real change.


Shifting this kind of entrenched culture requires courage, clarity, and deep resilience. As you begin to navigate this shift, know that you don’t have to do it alone. Together, we can create a culture where everyone is encouraged to contribute, to take risks, and to hold one another accountable for a higher standard of excellence.


Summoning the Courage to Trust Ourselves & to Challenge the Status Quo


True change requires courage, the courage to trust our inner wisdom even when the world tells us to conform. It means listening deeply to the quiet knowing within us, the part that dares to ask, What if there’s another way?


Courage doesn’t mean having all the answers. It means being willing to step into the unknown, to experiment, start with great questions and co-create. It means standing in the tension between preserving what is good and dismantling what no longer serves.


"It is the willingness to look again." - Arrien, Angeles

When we lead from this place, grounded in self-trust, open to collaboration, and fueled by a vision of what’s possible, we create real, lasting change.


Creating the Future We Deserve


So, what else is possible?


  • Workplaces where everyone belongs and thrives.

  • Leadership that is human-centered, not ego-driven.

  • Systems that uplift rather than oppress.

  • Innovation that is rooted in equity, sustainability, and deep care.


And most importantly, a world where we don’t have to do it alone.


For Executive Directors of Non-Profit Organizations


If you are an Executive Director (ED) of a non-profit (thriving social-profit sector!) organization, I invite you to reach out.


I will support you, within your budget, and will be by your side as you prepare to gently challenge the status quo and navigate tough conversations you may have been putting off. Happy to be your partner in mastering any new leadership skills you might need.


You deserve to be supported, trusted, and recognized. I’ll help you feel strong, empowered, and thriving once again, because you’re not meant to do this work alone.


Together, we can build a future where you feel energized, capable, and connected to your purpose. Reach out, I'm waiting to hear from you.


Interesting resources:


Black and white text image: "Don't ask if a charity has low overhead. Ask if it has big impact." Blue and black font, modern design.

 

Hi, I’m Monika, Strengths Coach, facilitator, social-profit organization leader, and photographer. I’m here to help you own your vision for meaningful growth and transformation, uncover your unique leadership strengths, and empower you and your team to thrive and create lasting impact. Passionate about driving change within, around, and beyond, I love supporting fellow change-makers on their journeys.


bio portrait of Monika Kawka

I hope you’ll visit often, and I look forward to connecting and working together!


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