How to Become a Nonprofit Executive Director or CEO
Have you ever wanted to run a nonprofit – and wondered how exactly someone becomes an executive director or CEO?
What is the most common career path? What skills do you need? Can people leap straight from a business career to leading a nonprofit? Today, we’re going to explore all these questions and more.
The good news is that the nonprofit sector prides itself on embracing people with diverse skills, backgrounds, and experiences. There are many paths to running a nonprofit. But those who most enjoy the role and are the most successful are the ones who balance humility and entrepreneurial passion.
Before you start polishing up your resume, let’s take a look what nonprofit executive directors actually do and how you can set yourself up to succeed in a nonprofit leadership career!
What Is a Nonprofit Executive Director or CEO?
A nonprofit executive director or CEO is the top executive at a not-for-profit corporation. They can be paid or unpaid. The executive director or CEO serves as the bridge between the board (governors of the organization) and the staff (implementers). The executive director or CEO works for the board, and all other staff and vendors work for the executive director or CEO.
Typically, the board deals with high-level and longer governance issues like strategic plans, mission attainment, and due diligence. But the board also hires and fires the executive director and usually delegates huge portions of organizational responsibility to them because the board members are volunteers who mostly provide oversight. Read more about what nonprofit executive directors do.
Some organizations don’t have an executive director and instead call their top executive the “President and CEO.” In these situations, the CEO is also on the board and leads the entire organization, not just the staff, but this model is less frequent. The organization’s bylaws determine the structure.
What Skills and Experience Do You Need to Become a Nonprofit Executive Director or CEO?
Every organization is unique, but there are ten main areas of responsibility that most executive directors have. These are:
Leadership (the soft and hard skills of being a leader)
Fund development (fundraising)
Board support and development (working with the board of directors)
Financial management (budgets and accounting oversight)
Human resources (supervising staff)
Operations and technology (systems, processes, facilities, and technology)
Diversity, equity, and inclusion (all ways that the organization addresses DEI)
Compliance and best practices (risk mitigation and reputation improvement)
Community relations and communication (engaging the public, lawmakers, and media)
Programs and advocacy (the organizational activities designed to reach the mission)
Most first-time executive directors will need time to develop these competencies and skills, as each area is broad and complex.
To help new, current, or aspiring executive directors, I’ve compiled an expedited executive director training program that fits into less than one day of learning. This self-paced executive director training program walks through each of the ten areas in detail and gives you a rich set of resources to help you excel quickly in the role.
Key nonprofit leadership skills to start honing now
If you’re dreaming of becoming an executive director, you can start getting ready by being sure that you:
Understand what makes nonprofits different than businesses and government bodies.
Understand how to ask for money and why raising it is vital.
Have solid people skills and can navigate conflict.
Can motivate and persuade people – such as volunteers and donors – to help a cause.
Have humility, know how to ask for help, and be open to learning what you don’t know.
Understand the basics of how to protect an organization and its mission by avoiding unnecessary risk or falling out of compliance with the law.
Possess leadership skills. Executive directors are not administrators – they are leaders – and people expect decisiveness.
Although this list covers the bulk of a basic executive director job description, the additional skills and experience you need will depend on the organization. Each board and organizational culture has its own priorities. But mastery of the above areas will get you 80% of the way to success.
How to Prepare for a Nonprofit Executive Director or CEO Position
One of the beautiful things about the nonprofit sector is that we embrace and hire people from outside the sector all the time. You can come from the government, business, or a small family farm!!
What truly matters is your judgment, humility, passion, integrity, and entrepreneurial spirit.
That said, you should understand a few things before taking the reins and running an organization.
For nonprofit founders who want to become the executive directors
If you are a founder and plan to create and run an organization yourself, do a gut check and ask if your leadership abilities are the right mixture to be the executive director. It’s okay if your skill set is a better match for the role of a program director or office manager. Not everyone can thrive as the executive director. Sometimes we must check our ego at the door.
If you decide to move forward, you should review websites, courses, books, and other expert materials before starting your organization. It’s not required, but it will help you and others feel more confident.
For applicants to executive director roles at existing organizations
If you are applying to be executive director of an established organization, you will have competition. Other people vying for the role will likely have experience in nonprofits and managing the unique dynamics of resource-strapped charitable organizations. Before you apply you should:
Reach out to two or three nonprofit executives in your network and ask them to help prepare you for the role.
Read high-quality information about nonprofit leadership. You can find some at www.NonprofitFixer.com, Rockwood Leadership, or any of the university-level nonprofit leadership programs.
Work with a consultant or coach to help prepare you for the application process and for being successful in the role.
Consider volunteering or working for a nonprofit first.
For people starting an executive director role
If you have already been offered an executive director position, don’t try to cram all your knowledge and skills building into a short window. Instead, commit to ongoing learning. Take classes or courses, read books, network with other nonprofit leaders, and invest in coaching, such as my executive director group coaching program.
How to Succeed as a Nonprofit Executive Director or CEO
Nonprofit leaders can make major mistakes, just like any other leader. In a nonprofit, people are far more emotionally tied to the mission and the organization. Many have chosen to earn less money in exchange for purpose-driven work in a nonprofit.
Failure also has different contours for nonprofits. Unlike in business or government, the failure of a nonprofit leader can cause an organization to permanently lose donors and credibility.
Research shows that the nonprofit executive directors who are the most successful are self-aware, committed to improvement, and driven by the mission. They also build strong relationships with stakeholders, especially the board and major donors.
Conclusion: Becoming a Nonprofit Executive Director
No one should think they can walk into a nonprofit with little experience and perform perfectly. Nonprofit leaders need experience, skills, judgment, and humility.
That said, nonprofits are willing to hire people from a wide range of backgrounds as long as they have a proven record of success and fully understand the role.
You can prepare to apply and lead a nonprofit organization by asking for support from consultants, coaches, and nonprofit leaders, as well as studying nonprofit leadership and management. Luckily there are programs to help you get up to speed quickly, like my Executive Director Boot Camp.
No matter your path to leadership, running a nonprofit can be hard work and incredibly fulfilling.
