This is a bold statement, but I can usually tell the long-term viability of a nonprofit within a minute of meeting its director.
Most people look for the common qualities in a leader: their passion, commitment to the mission, and ability to bring in great volunteers and staff. These traits matter. No nonprofit can thrive without them. But here’s the truth most people overlook: those qualities alone don’t determine whether an organization will be sustainable for years to come.
I often talk about perseverance because running a nonprofit takes real work. There are long days, hard choices, and plenty of moments where you’re giving more time and energy than you ever expected. And building the relationships needed for major funding? That can take years, sometimes decades.
Still, even with passion and perseverance, there’s one quality that stands out above the rest when it comes to long-term success.
A few years ago, I spoke at a local college alongside several leaders from major nonprofits in our area. The students asked all the right questions; what we look for when hiring, what skills someone needs to work for or start a nonprofit, and how to prepare for the work ahead.
The panel offered a lot of great insight, but one common thread connected every director on that stage. I’ve worked with most of them over the years and it was evident they all share the same crucial skill: they understand money, what is needed to raise it, not just for the short term, but for the long term.
And this skill is surprisingly easy to overlook. If a director doesn’t have the business or entrepreneurial sense to understand and manage an organization’s financial needs, the nonprofit will almost certainly face serious challenges down the road, or fail completely. This is why it’s so important to have an honest conversation when hiring: Does our director have the business mindset needed to sustain our budget and our mission long-term? If they do not, it can lead to failure of the organization, or burnout of the director.
The good news is that these skills can be learned. Training helps. Coaching helps. Passion may get a nonprofit off the ground, but it’s strong business skills that help it grow, stabilize, and last.
If you’re ready to develop those skills, reach out to the Funding Coach. I’d be happy to help.