Everything you need to succeed as a nonprofit executive director

Most of us are familiar with the CEO role at a company, but it’s less clear what a nonprofit executive director does—especially if this is your first step into the nonprofit sector. The truth is that nonprofit directors do a little (and often a lot!) of everything, which requires them to have a wide range of skills and attributes.

Whether you’re considering the role, new to it, or looking for fresh ways to make a difference in your organization and your broader community, this guide has the information you need to make a positive impact as an executive director.

What is a nonprofit executive director?

The executive director of a nonprofit (or ED) is the leader at the very top—the person who runs day-to-day operations and guides the organization's strategy and programming. Nonprofit EDs work closely with their staff and board of directors to achieve their mission.

This position is centered on solid leadership and involves overseeing a wide range of functions. In terms of seniority, leadership, and impact, it is equivalent to a CEO for a for-profit organization. Some people use nonprofit CEO or chief executive interchangeably with executive director.

What does an executive director of a nonprofit do, exactly?

As the CEO of a nonprofit organization, executive directors are involved to some degree with almost every facet of operations. This involvement is often highly strategic and focused on leading and empowering team members to handle details effectively. In a small organization, this may consist of more direct involvement and hands-on management.

Here’s an overview of the core nonprofit executive director roles and responsibilities.

1. Day-to-day and strategic leadership 🧭 

Nonprofit executive directors are leaders first and foremost. They guide, motivate, and support team members to work at their best. Executive directors oversee all departments within the organization. Therefore, they must use strong communication skills and empathy to share the vision, chart the course, and rally everyone along for the journey. 

2. Fundraising leadership 📈

Within fundraising, EDs act as the face of the organization, overseeing strategy, allocating resources, and championing effective fundraising across the team. Even with staff to run programs and donor communications, it’s necessary to be available (and confident) to discuss fundraising with major donors, the board of directors, and other key stakeholders. 

3. Financial management 💰

A key aspect of managing nonprofit operations and ensuring success is understanding accounting for nonprofits and how to use finances strategically for growth. Executive directors should be proficient in financial management, cash flow, data interpretation, and the organization’s tax and financial compliance requirements. 

4. Human resources 👥

Nonprofit directors are responsible for resourcing the organization, which means they play an active role in human resources—especially in a smaller nonprofit. While they delegate the day-to-day operations, EDs should outline effective HR practices for recruitment, onboarding, employee experience, and overall company culture.

5. Diversity and inclusion leadership 🌍

Along with general HR leadership, nonprofit CEOs should proactively champion diversity, equity, and inclusion (DEI). The nonprofit leader’s role is to ensure that DEI is a core component of the organization’s culture and create opportunities to welcome, empower, and celebrate everyone. 

6. Program strategy 📋

The fundraising lead will typically own the fundraising program strategy, but the role of the executive director is to provide insight, vision, and clarity in strategic planning. Acting as a liaison, they must balance the board’s wishes and goals with the fundraising team’s needs when agreeing on programs and initiatives.

7. Board development 🤝

Nonprofit chief executives play a crucial role in supporting and developing the board, which can involve recruiting (and retaining) active board members, suggesting operational improvements, and promoting resource development. It’s also the ED’s role to help run board meetings and facilitate communication between the board and staff members.

8. Stakeholder management 🤲

As a prominent figure within the organization, nonprofit executive directors should actively engage with stakeholders to secure partnerships, facilitate communication, and meet shared goals. Stakeholders could include funding partners, grant givers, other nonprofits, and local government and business leaders. 

9. Public relations 📣 

It’s not just immediate stakeholders that nonprofit leaders should be comfortable talking to, but also the press and broader community. Through media, executive directors can share their nonprofit’s passion, goals, and vision with the world—doing so in a way that reflects the organization’s voice and values.

10. Compliance 📝

It’s best to receive expert advice, but it’s the nonprofit CEO’s responsibility to ensure compliance with all necessary laws and regulations, including management, financial, tax, employment, record keeping, security, and data privacy. 

11. Operations management ⚙️

In a larger organization, you may have someone who handles operations. However, the executive director still oversees operations such as securing suitable premises and resources, improving invoice handling, and creating a system for volunteer management.

12. Technology 💻 

In addition to overseeing operations, executive directors should introduce technology that empowers team members to excel. EDs should work to equip their teams with the best nonprofit software, including fundraising platforms, design tools, and internal communications systems that increase productivity, effectiveness, and impact. 

Top qualities and qualifications of a successful nonprofit executive director

Nonprofit CEOs hold a lot of responsibility, often balancing conflicting priorities and limited resources. Effective executive directors will find their way using their experience, valuable traits, and a commitment to learning. There’s no one playbook for success, and every nonprofit executive director job description looks slightly different, but the following qualifications, skills, and qualities are some of the most common. 

Essential nonprofit executive director qualifications

You don’t need a specific degree to become an executive director, but having relevant experience to bring to the role will get you closer to becoming the executive director nonprofits are looking for. Desirable experience for would-be nonprofit CEOs may include: 

• Leadership experience 🎉 Great nonprofit CEOs can demonstrate the ability to lead others toward success, whether through a previous nonprofit or business role or a leadership role within their community.
  
• Technical abilities 🥼 Expertise in your nonprofit’s field can be a big bonus, particularly for making informed decisions and applying for specialized grant funding.
  
• Financial acumen 📊 Demonstrate understanding of financial reports and nonprofit budgets and how to turn those numbers into strategic action.
  
• Fundraising skills 💰 Executive directors who actively show an interest and competence in fundraising are highly valued.
  
• Management experience 💼 Highlight your background in management, whether that’s people management, project management, program management, or all of the above.
  
• A relevant degree 🎓 While not a requirement, a bachelor's or advanced degree can introduce you to valuable skills, powerful connections, and a passion for lifelong learning.

Desirable nonprofit executive director skills and qualities

The best nonprofit CEOs are highly competent at “soft skills” like communication and resilience and are either natural or learned leaders.

Impactful executive directors master and proactively sharpen the following skills:

• Leadership 📣 Capture the attention and spirit of those around you, and use your skills to lead your team towards success through your words, inspiration, and actions.
  
• Communication 💬 Develop your skills as an expert communicator who tailors how you talk based on the audience and situation—from sharing good news with your board to navigating challenging conversations with a direct report.
  
• Relationship building 🤝 Take an active interest in building meaningful relationships with those around you, including your nonprofit board, team members, stakeholders, and the wider community.
  
• Decision making ✔️ Learn how to make strategic decisions, delegate when appropriate, and move forward instead of being indecisive.
  
• Resilience and adaptability 💪 Become adept at dealing with unexpected situations positively and proactively so you handle any challenge that comes your way and model resilience for your team.
  
• Curiosity ❓Always be on the lookout for new ideas, inspiration, strategies, and tools that can positively influence your nonprofit operations, programs, and fundraising efforts. 

Expert advice on how to make an impact as a nonprofit executive director

Now you know the basics of nonprofit executive director responsibilities and the attributes that make a strong candidate, but how do you truly thrive in the role? We’ve spoken with some of our expert community members to bring you practical advice to help you excel.

Fundraising marketing and growth consultant Linda Handley, who has been a CEO, a nonprofit founder, and an executive director for many years, had this advice to share: 

New executive directors should focus on building strong relationships with their board, staff, and community, while setting clear, achievable goals to guide their organization's mission. To prevent burnout, they should prioritize self-care, delegate effectively, and establish a supportive network of peers and mentors. 

And Michael J. McGovern of Modern Financial Care offered these words of wisdom for new nonprofit EDs:  

Don't pull yourself in too many directions. Focus on what you're good at. If you can spend the majority of your time on the things you're great at and partner or delegate the tasks that aren't in your sweet spot, you'll keep your motivation and stay energized. When you're pulled in a million directions each day and doing things you don't have the skill set to accomplish, you'll get lost in the work instead of being inspired by your results.  

To review, executive directors of nonprofits should take this expert advice: 

• Focus on nonprofit leadership 💚 Work on becoming the best leader you can be. Strong leaders can better guide their team in the right direction, ensuring higher levels of future success.
  
• Build a strong board 🏆 Build strong relationships with your board members and actively support them in their roles so you can work harmoniously together towards your big goals.
  
• Recruit the right team members 👋 Identify the specific attributes and experience you’re looking for, and hire the right people into the right roles—then allow them to shine.
  
• Delegate your weaknesses 📝 You can’t handle everything all the time. Proactively delegate where you can so you can give your passion and energy to the tasks and responsibilities that you excel at.
  
• Pursue personal development 📚 Adopt a habit of learning new things—whether that’s how to become a better listener, how to write grant proposals, or how to manage your time.
  
• Find a mentor ⭐ Seek out someone in the industry a few steps ahead of you, and ask if they’ll act as your guide (and biggest cheerleader).

Jumpstart your executive director success with Givebutter

Nonprofit executive directors wear many hats and carry significant responsibility. At the same time, it’s a unique, impactful, and highly rewarding role for those passionate about their cause and empowering their team.

One of the easiest ways to start your ED journey on the right foot is by introducing new software and tools that save you and your staff time and money—like Givebutter’s free, all-in-one fundraising platform.

Givebutter’s modern, user-friendly platform can empower your team to manage donor communications, seamlessly track data with a built-in CRM, and delight your supporters with user-friendly fundraising pages, enhancing the giving experience for everyone.

‍Sign up for your free Givebutter account today and see how you can start to make a difference in your role in moments.