Nonprofit leadership pathways are shrinking. How can we rebuild them?

Amid dramatic changes to federal policy and funding priorities, a shifting philanthropic landscape, and increasingly stretched state and local budgets, nonprofits continue to provide food, shelter, education, economic opportunity, and more for millions of people every day. Improving the health and sustainability of nonprofits has never been more important. At the same time, research from Third Sector New England (TSNE) on the experience of nonprofit leaders and staff makes clear that current challenges are constricting leadership pathways and threatening the health of the sector.

Nonprofit leaders are under intensifying pressure

The feedback from nonprofit leaders is clear and consistent; it points to persistent challenges that have been exacerbated by a rapidly changing sociopolitical landscape. Equity, infrastructure, and sustainable investment in leadership development are no longer aspirational goals—they are prerequisites for supporting current leaders and building leadership pathways that are accessible and inclusive. To ensure a pipeline of experienced, capable, and diverse future nonprofit leaders, the sector needs to renew its focus on those three essentials.

Today, the essential work of nonprofits is complicated by a variety of different factors. Decades of underinvestment, especially in BIPOC-led organizations, is being compounded by an increasingly uncertain funding environment and decreasing availability of charitable and philanthropic support. Even in organizations with a stated commitment to equity and intentional leadership development, those commitments are often undercut by lack of targeted, flexible resources and the prioritization of other organizational goals. And organizations are too often isolated from one another, preventing opportunities for mutual support and the sharing of best practices.

As one leader said, “There’s not yet a culture built of…we can stay in this lane, and then let’s actually partner with people who are in the lanes next to us, to be able to more horizontally support ourselves and our communities, rather than feeling like each of us is sitting on an island.” These challenges are pushing an already stretched workforce to its limits and resulting in increased burnout and turnover.

What happens if leadership pathways keep shrinking?

Especially in a moment when nonprofits are under such an intense, politicized microscope, strong leadership is essential. If exhaustion, burnout, and turnover remain the defining features of nonprofit work, seasoned leaders and staff will continue to seek opportunities elsewhere—and aspiring leaders will avoid the sector entirely—resulting in less experienced, less prepared leadership and perpetuating a vicious cycle. The Center for Effective Philanthropy’s 2024 survey of nonprofit leaders found that almost 60% of identified staff-related concerns (including losing staff to organizations with more competitive compensation and benefits, lack of staff capacity, and burnout, etc.) as a top concern. The drain on talent and capacity—both in terms of personnel and the ability to train and support newer staff members—endangers not only individual organizations, but the health and sustainability of the entire sector.

A weakened nonprofit sector without strong leadership pathways, in turn, threatens the well-being of individuals, families, and communities nationwide. Nonprofits support personal and civic life in innumerable ways, from care delivered in nonprofit hospitals and support for families facing food or housing insecurity to arts, recreation, employment, and more. Nonprofits are economic drivers, too, supporting more than 12 million jobs and contributing billions to our economy every year.

What do nonprofits need to meet today’s leadership challenges?

Funding plays a critical role in determining the strength of leadership pathways, and trust-based philanthropy offers a clear roadmap. Especially now, supporting successful, sustainable nonprofit leadership requires a multifaceted approach. In our conversations, leaders were clear: They need flexibility and resources to both support current leaders and build leadership pathways that reflect their unique organizations. Funding that supports investments in team culture, allows leaders to make necessary updates to compensation structures, and creates opportunities for professional development and peer-to-peer learning is essential.

By reducing burdensome reporting requirements, increasing unrestricted funding, and prioritizing internal infrastructure alongside service delivery, funders can empower organizations to make their own decisions about how best to utilize funding to create stronger leadership pathways. As one nonprofit leader said, “Having more flexible funds allows [you] to have the resources to invest professionally and…allows you to create that kind of internal infrastructure that might match your values in a way that you know.” At a time when nonprofits are asked to do more with less, moving away from overly restrictive funding models is essential to ensuring leaders, organizations, and the communities they serve are supported, developed, and connected.

Building sustainable, equity-focused leadership pathways is vital to the long-term health of the sector, and it will require investment in people, structures, and culture that allows nonprofits to find the most effective, efficient path forward. The future of the nonprofit sector depends on whether we are willing to be clear-eyed about the challenges facing the sector and invest accordingly.

Photo credit: Courtesy of TSNE