Nonprofits are born from passion and a deep commitment to mission. It’s precisely why I got into nonprofit work and eventually became a consultant. Everyone I’ve met in the nonprofit sector is in it for the right reasons – we have a deep desire to address injustice, to create pathways for opportunities, and to strengthen our communities. And often, it’s a founder’s personal experience (or family connection) or deep-seated belief in a cause that drives the initial energy and vision. That’s amazing. Passion is essential to the work.
But here’s the problem. Passion can sometimes trump impact. It doesn’t always translate into operational effectiveness and sustainability. It also doesn’t always translate into equity or a positive culture. In my years of consulting with nonprofits, I’ve observed how an over-reliance on passion can hinder an organization’s impact.
This happens in a few ways.
The People Issue
I cannot tell you the number of organizations I have worked with that have an excellent mission and a beautiful belief in their cause…while their leadership, management, and staffing is a mess. I’ve seen rapid staff turnover, serious power-imbalances, and even what my former colleague David La Piana, coined, “the nonprofit paradox,” where nonprofits tend to replicate internally the exact issue they are trying to solve externally. It happens all the time.
There’s also this terrible trend of nonprofit leaders expecting their staff to work long hours, for low wages, all in the name of passion, purpose, and the greater good.
TikToker @nicoleolived does a hilarious, yet scarily accurate, portrayal of a nonprofit boss who believes she is a humanitarian while also overworking and underpaying her employees. On one of her videos, a commenter, Zach, wrote, “my favorite was working for a very well-known affordable housing nonprofit while being paid a salary that qualified me to apply for their services.”
Nonprofits can become a safe harbor, so to speak, of perpetuating terrible systemic inequities, power imbalances, and white supremacy.
The Operational Issue
Organizations who focus on pure passion rather than impact or organizational sustainability can have issues in achieving their vision. A passionate leader may find it difficult to delegate, believing that no one else can execute the mission with the same level of commitment. This can stifle growth and create bottlenecks, while also preventing collaborative decision-making, leading to choices made based on feeling rather than logic. And of course, many of us are aware of the dreaded “Founder’s Syndrome.” Founder’s Syndrome occurs when a nonprofit founder who has been at the helm too long lets their personal attachment to the mission make it difficult to grow, adapt, evolve, or even embrace new ideas. Strategy becomes stagnant which limits growth.
So, okay, now that I’ve criticized the very industry I love, what can we do about it?
Heart + Head = Impact
The solution lies in balancing heart and head. Passion is the heart of a nonprofit, of course, but it needs strong operational practices to thrive. This means embracing strategic planning with a clear North Star everyone can get behind, in addition to goals, objectives, and metrics to provide a roadmap for success. It also means creating a paradigm shift away from following the founder’s vision, to following the community. It means asking questions like, what does the community need from us? What are the gaps that exist in the ecosystem? Are we adequately suited to fill those gaps? How can we partner with others to deepen our impact?
It requires investing in strong systems for finance, HR, and program management to ensure efficiency, accountability, and sustainability. My collaborative leadership framework is another way to embed equity and strategic decision-making within an organization. Are you bringing all members of your organization to the table? Are you building a culture that encourages open and honest communication, fosters transparency, and cultivates trust, inclusivity, and cooperation?
It also means taking a serious look at your HR practices and asking questions about pay equity, salary transparency, cost of living, and salary ratios. It shouldn’t be common knowledge that nonprofit executive directors (even of small organizations) can make half a million dollars a year while its employees straddle the poverty line. What message does that send to the community we serve if we cannot even provide growth opportunities for members our own organization? How can we truly build trust with our constituents and stakeholders?
Lastly, addressing the passion problem also means planning for succession. Even the most passionate founders won’t lead forever (well, hopefully not). A succession plan ensures a smooth transition and continued organizational growth.
I love the nonprofit sector. Truly, when we look at all the challenges that our society faces, community organizations are at the heart of the solution. They push for justice, address governmental gaps, and provide resources where there previously were none. But we, as an industry, have to do better.
Passion is the spark, but operations really drive a nonprofit forward. Balancing heart and head is the key to creating internal equity, establishing collaborative decision-making, and pursuing operational effectiveness. This is the way to drive lasting change in the community.