Chief Influencer: How Today’s Nonprofit CEOs Lead Through Uncertainty

By MHS Association November 21, 2024

Today’s issues—be they economic volatility, donor shifts, technological change, or complex regulatory requirements—call for innovative, agile thinking...

In today’s climate, the nonprofit CEO role demands much more than ever before. Once focused largely on internal operations and organizational stability, the role now requires intense adaptability, influence, and agility. CEOs must navigate an increasingly complex ecosystem of stakeholders, each with their own goals, perspectives, and sometimes conflicting agendas. This unique landscape demands a CEO who can act as a “chief influencer,” skillfully balancing relationships, resources, and risks to propel the organization’s mission forward.

As we dig into what it means to be an effective nonprofit CEO today, it becomes clear that leading with influence, rather than authority alone, is essential. “Influence has become a critical capability for leaders because, in today’s work environment, no single person has the answers to complex challenges,” says Herminia Ibarra, a professor of organizational behavior at London Business School. Leaders, she notes, are especially tasked with harnessing this influence, since they work in environments where resources are often stretched, and missions are tied to deep-rooted, community-centric goals.

The CEO as Broker of Ideas, Relationships, and Resources

In a nonprofit setting, the CEO’s role can be likened to that of a broker—not just of financial capital, but of ideas, relationships, and resources. They sit at the nexus of the organization’s internal and external worlds, absorbing feedback, adapting strategies, and aligning people and priorities. This brokering role requires them to listen carefully to a diverse set of voices, translate vision into action, and leverage influence to keep everyone moving in the same direction.

The need for CEOs to be brokers of ideas is further heightened by the ever-evolving challenges facing the nonprofit sector. Today’s issues—be they economic volatility, donor shifts, technological change, or complex regulatory requirements—call for innovative, agile thinking. As Henry Timms, co-author of New Power, notes, “The speed of change requires nonprofit leaders to rethink their influence strategy continually. Influence has to be thoughtful, intentional, and capable of adapting to stakeholder demands and expectations”.

External Pressures While Leading Internally

With so many changes shaping the landscape, CEOs face intense pressure not only to lead but to “move the needle” continuously. For nonprofits, this means demonstrating value and impact to donors and board members while staying true to the organization’s mission. This balancing act is difficult; it requires CEOs to be emotionally intelligent, quick to understand the needs of their supporters, and capable of making decisions that blend short-term responsiveness with long-term vision.

But, influencing internally can be just as important as engaging externally. Influencing board members, staff, and volunteers toward a shared vision is crucial, especially in times of change. Influence within the organization isn’t just about persuasion—it’s about fostering a sense of shared purpose, engaging individuals at every level, and setting a clear example.

Building Trust as a Foundation for Influence

The best CEOs understand that to truly influence, they must first build trust. In nonprofit settings, trust is the foundation of every meaningful relationship—from donors to board members to staff. Building this trust requires transparency, humility, and consistency, as well as a readiness to tackle difficult questions and communicate honestly about challenges and opportunities. Without trust, even the best ideas or the most well-intentioned strategies will fall flat.

One of the unique elements of the nonprofit CEO role is the necessity of working with stakeholders who often have deeply personal commitments to the mission. This adds both value and complexity, as these stakeholders bring invaluable perspectives but may also hold strong, sometimes conflicting opinions on the best path forward. The CEO, therefore, is in a constant balancing act, requiring both sensitivity and the ability to influence stakeholders toward consensus and aligned action.

The Power of Positive Influence

Influence, as a defining trait of leadership, has the power to bring people together toward a shared goal. In today’s landscape, nonprofit CEOs are increasingly seen as “chief influencers” because of their ability to motivate action and rally people around causes that matter. They are the ones ensuring that their organizations remain relevant and impactful in a fast-paced, ever-evolving world.

In sum, the modern nonprofit CEO’s role has shifted well beyond management and governance. They are leaders of influence, with a distinct ability to move people and resources in service of the mission. As Ibarra puts it, “The CEO of today is less the authority and more the cultivator of relationships and the shaper of strategic influence”. This influence, applied strategically, is what allows a nonprofit to thrive amid rapid change and complex challenges, fulfilling its mission and creating lasting impact.

Nonprofit board members, as close allies and strategic partners can empower their CEOs to lead with this level of influence by fostering environments of trust, innovation, and flexibility. By supporting CEOs in their roles as “chief influencers,” board members ensure their organizations are poised for success, no matter what challenges lie ahead.