PDF Summary:Joan Garry's Guide to Nonprofit Leadership, by Joan Garry

Running a nonprofit requires balancing mission, money, and people—all while managing a volunteer board and limited resources. In Joan Garry's Guide to Nonprofit Leadership, Joan Garry explains how nonprofit leaders can navigate these challenges and build organizations that make a lasting impact. She covers the internal foundations necessary for success, including board structure, staff management, and leadership transitions, as well as external priorities like fundraising and storytelling.

Garry discusses how to transform working groups into cohesive teams, why the relationship between board chair and executive director matters, and how to prepare for leadership changes. She also addresses the specific struggles of smaller nonprofits, from burnout to financial vulnerability. This guide offers practical advice for nonprofit leaders who want to strengthen their organizations and stay focused on their mission.

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(Shortform note: Scholars have described this phenomenon as a “threat-rigidity” response, where organizations facing perceived threats (like leadership transitions) tend to narrow their focus and limit their options. Barry M. Staw, Lance E. Sandelands, and Jane E. Dutton argue that under threat, organizations often revert to familiar routines and centralize decision-making, which can stifle creativity and adaptability.)

External Engagement: Fundraising, Storytelling & Communications

Garry says that effective fundraising involves collaboration and requires a strong organizational culture. The board must lead on fundraising and take ownership of its obligations, being proactive rather than putting the staff in the position of nagging them. Additionally, the board must accept its duty to fundraise and track its effectiveness.

The organization must cultivate a robust culture of fundraising throughout the organization, from hotline responders to administrative staff and all board members. The board chair and executive director have to cultivate a meaningful culture in their organization. If the focus becomes centered on finances, documentation, and administration, the nonprofit will be competent but never exceptional, capable but not driven, and it won't be able to bring in the level of funds clients both require and merit.

Donor Loyalty and Fundraising Success

In Fundraising Principles and Practice, Adrian Sargeant and Jen Shang present a comprehensive analysis of donor behavior and nonprofit management, drawing on extensive longitudinal data from thousands of donors and organizations. Their research reveals that donor loyalty and long-term fundraising income are driven primarily by psychological factors such as satisfaction, commitment, and trust, together with a sense that the organization’s values match the donor’s own. Empirical studies of giving behavior consistently show that these relationship variables explain far more variance in retention and growth in giving than do internal efficiency indicators or the tightness of an organization’s financial control systems.

Garry also believes that storytelling is crucial for successful fundraising. If you convey a persuasive story and demonstrate your commitment to the organization, people will be more likely to donate.

(Shortform note: While storytelling is a powerful tool for fundraising, it may not be effective for all donors. In Doing Good Better, William MacAskill argues that we shouldn’t trust our charitable intuitions when they’re driven by stories and images.)

She reiterates that board members should be proactive in fundraising efforts because the staff works for the board, and it’s awkward for staff to have to nag their bosses to do their jobs. Staff become resentful when the board fails to meet its commitments, and board members dislike being nagged.

(Shortform note: In Influence Without Authority, Allan R. Cohen and David L. Bradford suggest that you can influence people to do what you want by framing your request as a way for them to get what they want. They call the things people want “currencies,” and they include recognition, relationships, a sense of achievement, and reduced hassle.)

Leading Charitable Organizations With Effectiveness

Next, we’ll discuss the key roles of leadership in not-for-profit organizations and practices for effective leadership in not-for-profits.

Leadership Roles in Not-for-Profit Organizations

Garry asserts that leaders in charitable organizations must inspire confidence and imagine a better future. They need to guide a worried group, giving them confidence they can handle the situation. Additionally, they must communicate with everyone who matters in the organization, reinforcing that their efforts persist, communicating achievements, and boosting their assurance that there's no leadership void.

(Shortform note: The expectations that leaders in charitable organizations “inspire confidence” and “imagine a better future” reflect a research tradition that sees leaders as shapers of shared narratives. This tradition, called sensemaking, sees leaders as people who help groups make sense of the world.)

Practices for Effective Nonprofit Leadership

Garry states that successful nonprofit leaders focus on their mission. They understand that their job is to serve the mission, not to please everyone, and they maintain the organization's focus on it, even when making small decisions.

(Shortform note: The expectation that nonprofit leaders focus on their mission rather than pleasing everyone is a relatively recent development in the history of American philanthropy. In Inventing the Nonprofit Sector, Peter Dobkin Hall explains that, until the 20th century, charitable organizations were primarily accountable to their founders and donors, who often dictated the terms of their giving.)

Additionally, Garry believes that nonprofit leaders should develop foundational qualities along with their abilities. These attributes are often ignored when considering leadership, but developing them can be as beneficial, if not more so, than taking a class on financial literacy or earning a fundraising certification for nonprofits.

(Shortform note: Garry’s emphasis on foundational qualities aligns with a growing trend in leadership studies that prioritizes character and values-based leadership. This approach suggests that a leader’s deep-seated qualities—such as integrity, empathy, and resilience—are the bedrock upon which all other skills are built.)

Next, we’ll discuss team dynamics and performance, how to develop and support leaders, and the challenges specific to smaller nonprofits.

Team Dynamics & Performance

Garry believes that a strong relationship between the board leader and the head executive is crucial for nonprofit success. The executive director manages the staff, who are compensated to handle the essential daily tasks of the organization, while the board chair leads a volunteer group of top-notch stakeholders who contribute necessary life experience, expertise, and skills. Every member of the board is passionate about the mission and is determined to ensure the organization achieves maximum impact.

The staff and board act as thought partners, advancing the organization under the guidance of two people who comprehend their roles both individually and collectively. This joint leadership framework allows nonprofits of any size to broaden their reach and effectiveness.

Nonprofits Without a Head Executive

Some nonprofits have eliminated the role of a single head executive, opting instead for a self-managing structure. In this model, authority is distributed across teams, and decision-making is decentralized. This approach aims to foster greater collaboration, innovation, and employee engagement by empowering staff at all levels to take ownership of their work and contribute to the organization's mission. In such organizations, there is no “board leader and the head executive” pair, so this joint leadership framework is not applicable.

Garry also says that transforming a working group into a cohesive team requires shared leadership and mutual accountability. A working group consists of people with a strong, focused leader who holds them individually accountable for their work. Conversely, a team is composed of people who share leadership roles and hold each other mutually accountable. A group collaborates to fulfill a specific purpose. It fosters open dialogue and creative solutions, and evaluates its performance by assessing its group efforts.

(Shortform note: Mutual accountability means that everyone in the group gives and receives feedback about whether the group is meeting its goals. This feedback is honest and direct, and it’s given in a way that’s respectful and constructive. It’s not just about pointing out problems, but also about recognizing successes and helping each other improve. This kind of accountability creates a culture where everyone feels responsible for the group’s success and is committed to doing their best work.)

People collaborate to deliberate, choose, and accomplish real tasks. In a team, choices are reached together, and a variety of viewpoints are encouraged. Productive conflict is encouraged because it can result in creative problem-solving. The end decision prioritizes the organization's needs. To transform a collection of people into a cohesive team, everyone needs to grasp what sets a team apart from a group and should aim to become more like a team. The leader must convey why it's necessary for members to unite and set standards for the principles and actions expected of everyone on the team. Additionally, everyone must make an effort to greet and orient new members of the staff and board to help them grasp what joining the team entails. Leaders must also schedule time for retreats.

How to Build a Team

In The Wisdom of Teams, Jon Katzenbach and Douglas Smith discuss how to turn a collection of people into a cohesive team. They argue that a team is a small number of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable. They distinguish between real teams and working groups, noting that real teams have a shared commitment and mutual accountability, while working groups focus on individual performance. The authors emphasize the importance of clear goals, open communication, and trust in building effective teams. They also highlight the need for teams to balance individual and collective responsibilities, and to continuously adapt and improve their processes.

Leader Development & Support

Garry suggests that nonprofits should develop a succession plan to ensure leadership continuity. This is a written document that identifies potential internal and external candidates to replace the organization's leader. Nonprofits often avoid making leadership transitions, even when they realize they should, which can create problems for the organization. A succession plan guarantees that the nonprofit is prepared for a leadership transition when it needs to happen.

To develop a succession plan, the board ought to regularly discuss succession planning with the organization's leader. They should identify employees with leadership potential and give them opportunities for growth and training.

The Pitfalls of Succession Planning

While succession planning is important, it can also create problems for the organization. According to Idalene F. Kesner and Terrence C. Sebora, naming a specific successor can create an informal “heir apparent” who discourages other talented employees from pursuing leadership roles. This can lead to a loss of talent if these employees leave the organization. To avoid this, organizations should focus on developing a pool of potential successors rather than naming a specific individual. This approach allows for flexibility and ensures that the organization has multiple options when a leadership transition occurs.

Specific Challenges for Smaller Nonprofits

Garry points out that nonprofits with limited size frequently struggle with burnout and resources. They can be financially vulnerable, with half maintaining a cash reserve of less than a month and 8% being technically insolvent. More than half of all nonprofits cease to exist within a decade of obtaining their 501(c)(3) designation, and many close in only a few years because they lack proper leadership and planning.

Heads of smaller nonprofits require time for strategizing, teaching the public, involving board members and volunteers, and seeking new ways to generate income. They also often manage expenses, operate programs, and focus on involving the board. They often hit roadblocks due to uncertainty about what steps to follow or ways to expand a small, chaotic organization. They're unable to maintain the tempo of the work they deeply value, and they may require control or lack the resources to grow.

Theoretical Explanations for Small Nonprofit Vulnerability

Scholars often use resource-dependence theory and organizational ecology to explain why very small nonprofits are especially vulnerable. These theories view nonprofits as populations of organizations competing for limited external resources in a shared environment. Resource-dependence theory suggests that small nonprofits struggle because they rely heavily on external support, which can be unpredictable and insufficient. Organizational ecology adds that these organizations face intense competition for resources and must adapt quickly to survive in a crowded nonprofit sector. Both theories highlight how limited resources, competition, and environmental pressures make it difficult for small nonprofits to sustain themselves, leading to high rates of closure and instability.

Garry adds that small nonprofit leaders may find it difficult to prioritize tasks because they feel that everything is important. They may also feel overwhelmed by the sheer quantity of tasks they have to do.

(Shortform note: If you’re a small nonprofit leader who feels that everything is important and you’re overwhelmed by the quantity of tasks, try creating a “personal kanban” board. In Personal Kanban, Jim Benson and Tonianne DeMaria Barry explain that a kanban board is a visual representation of your work. It typically consists of columns representing different stages of work, such as “To Do,” “Doing,” and “Done.” By limiting the number of tasks in the “Doing” column, you force yourself to choose which tasks truly deserve your attention.)