A nonprofit organization can have the most well-intentioned leaders and staff, but that won’t necessarily guarantee success. In fact, some of the brightest and most capable leaders can make missteps that threaten their organizations. We all know that a good leader dramatically impacts an organization. But they can create nonprofit leadership fails.

Whether or not a leader can positively influence others—and their team’s performance—depends significantly on how they lead. A strong leader sets high standards for everyone involved, inspires them to reach those standards, and gives them the motivation to do so every day. However, not all leaders are as effective as they could be for their organization.

Sure, leaders make mistakes from time to time, which can have adverse effects on their team members and the organization at large. As a result, it’s essential to know the common pitfalls we often see with nonprofit leadership fails.

A lack of transparency

One of the essential qualities of a leader at a nonprofit is transparency. It means the people who work for you and support your nonprofit can trust your honesty. While you don’t have to disclose everything that comes across your desk, you must be honest and forthcoming regarding such things as annual goals, financial statements, policies, and so forth.

If you’re not transparent within your organization, your team will inevitably become suspicious and hesitate to trust your judgment and follow your directives. The lack of transparency can also make it difficult for your nonprofit to find donors and secure funding. If donors and funders don’t feel they can trust your organization and that you’re not inclusive or know where their money is going, they won’t donate.

Micromanaging by leadership

Managing a nonprofit can be a daunting task for any leader. After all, so many things need to happen daily. However, micromanaging your team’s work details can be incredibly counterproductive. If you constantly look over the shoulders of your staff members, you cannot complete your own—unique—responsibilities. Additionally, micromanaging employees can stifle creativity and make them feel their work isn’t valued.

The fact of the matter is that an organization’s CEO or executive director should do that which is unique to their role. In other words, if someone else can do it, they should. Organizational leaders should spend time fostering relationships with the board, meeting with strategic donors, raising funds, and measuring performance. (Here’s a big hint about major donors. They want to speak directly with the top person in charge).

Failing to hire and retain the right people

Every leader makes hiring mistakes from time to time, but it’s essential to learn from your mistakes. If you have hired someone who isn’t the right fit for the organization, of course, it makes sense to have a separation. But, in a world of technology, it’s essential to know that people matter. In other words, while AI is excellent for fundraising, you still need someone to close a major gift.

In short, you need to hire the right talent for your nonprofit, and you also need to retain them. Unfortunately, the nonprofit sector is afflicted with a scarcity mindset. Many refuse to pay people competitive wages. As a result, they have a revolving door of people coming in and exiting their organizations. Don’t make that mistake. Too many excellent competitors exist—and donors know it. So, hire and retain the right people.

Excessive organizational change

Every organization experiences some level of change over time, but too many structural changes can cause much disruption. If you constantly change schedules, alter job duties, or try out new policies and procedures, your team won’t know what to expect from one day to the next. Excessive organizational change can cause stress and fatigue among your staff members and likely result in lower productivity.

Indeed, there are times when it’s necessary to make organizational changes to improve operations or respond to an unforeseen challenge. However, if these changes are ongoing, it’s crucial to take stock of the situation and assess if the changes are helpful or not. If the changes are not positively impacting your organization, you need to reconsider what’s happening within your organization. Positive disruption’s one thing. Negative disruptions are each nonprofit leadership fails.

Benign neglect by leadership

Just as you need to care about the bottom line, you need to care about how your team and organization. And that means you have to give it the time and expertise it deserves and requires. Moreover, you need to ensure your team gets provided with the necessary tools and resources to do their jobs properly.

Believe it or not, I’ve seen benign neglect by leaders. They say what people want to hear, but they’re not involved in the organization at the levels and in how they should be for organizational success. Benign neglect can take many forms. For instance, it could reflect leaders who don’t spend the time they should raising funds. It could mean not getting coached or learning to be a nonprofit leader.

Poor communication

While many leaders make the mistake of being too controlling, others make the mistake of not communicating enough. It can lead to confusion in the workplace and a lack of trust between team members. If your team members don’t understand what’s expected of them, they can’t do their jobs to the best of their abilities.

Communication is an essential part of any successful organization. This is especially true in the workplace, as many rules and responsibilities apply in the nonprofit environment. If you’re not communicating with your team, board and managers well, you’re putting your entire organization at risk.

How to fix the leadership fails

There’s no question that nonprofit leaders make a significant impact on their organizations. It is the one variable in nonprofits that can have a profound impact on success.  Nonprofit leadership failure can have dire consequences for an organization. Fortunately, each is preventable with the right systems and strategies in place. First, leaders need to be willing to acknowledge their shortcomings. They should be ready to admit when they’re struggling with certain aspects of their role and seek help when needed. Coaching is an excellent way for nonprofit leaders to gain the necessary skills.

Leaders need to create a healthy culture where their team and supporters feel empowered. This value occurs when nonprofit leaders create strong relationships. So, leaders should spend much of their time encouraging regular one-on-one meetings. Also, they should be transparent about their own progress and goals, as well as that of the organization. An organization rises or experiences nonprofit leadership fails with the leadership skills of its top persons.

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