Nonprofit Organizations

Leadership Frameworks

Conceptually, nonprofit leaders must develop a strategic framework in which to operate. They need a clear understanding of their organization's vision, mission, and strategy. Consider the case of a community food bank. The leader's vision for the organization is to end hunger in the community by pursuing the mission of feeding the hungry. As in industry or government, the vision may be defined as a well articulated, ennobling goal toward which the leader directs the organization. It answers the question, “Why does the organization exist?” The nonprofit's mission answers the question, “What does the organization actually do to make its vision a reality?” Finally, the nonprofit's strategy defines how the organization pursues its mission. For example, the strategy of a food bank might be to have a central location in a poor part of town, or it may use a mobile van that travels around to help people in different parts of the community. Though business and governments also need a clear vision, mission, and strategy, they gain access to resources by selling goods and services or by the power of taxation. Nonprofits often must rely on their vision, mission, and strategies to gain support among clients, staff, and [Page 1098]particularly those who voluntarily aid the nonprofit with funds or other resources.

Operationally, the day-to-day running of nonprofits relies on the organization's structure. The leader (chief executive) of a nonprofit is typically called the executive director or president. The chief executive reports to a board of directors (sometimes called a board of trustees) and is responsible for pursuing the organization's mission. In all but the smallest nonprofits, the executive director has a staff, typically comprising a chief financial officer, a chief human resources officer, and a chief developmental officer (fund-raiser). Depending on the mission of the nonprofit, other senior positions may include a chief medical officer (in a nonprofit hospital or clinic, for example), an artistic director (in a dance, drama, or other arts-oriented nonprofit), or some other title related to the mission. In addition, there are often marketing, public relations, and operations managers and supporting assistants. With the exception of the fund-raising dimension typically associated with nonprofits, this “businesslike” structure differs little from the private or public sectors.

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