Leading Through Uncertainty: How Nonprofit Leaders Can Motivate Teams

Today’s nonprofit landscape is marked by significant levels of uncertainty.

Fewer individual donations, delays in the disbursement of grant funding, questions surrounding government funding, and shifting donor priorities have left many organizations in a challenging financial situation. At the same time, nonprofits report they’re also facing increased demand within their communities.

These dueling realities have forced many nonprofit leaders to lean into a different skill set to continue motivating team members as they face a changing environment.

Successful strategies to navigate an uncertain environment

When a nonprofit organization faces uncertainty, a leader may feel pressure to be the one person with all the answers. But that can be a risky approach. Turbulent conditions often require a different set of leadership skills such as: 

• Flexibility and adaptability. If “tried and true” approaches no longer work, leaders need to shift direction quickly and pivot to new strategies as situations evolve. Don’t be afraid to change course, realign your team, or adjust your approach to various aspects of your nonprofit’s mission. Giving your team more concrete objectives with a shorter timeline can help them commit to your nonprofit’s mission with goals that feel more readily achievable. This flexibility shows team members that their leader is confident about avenues to successfully address the new situation and communicates a message of calm leadership. 

• Increased communication. Uncertainty can be difficult to talk about but successful leaders lean into more frequent, transparent conversations. By increasing updates and feedback opportunities, leaders help staff, board members, donors, and the communities they serve stay informed, aligned, and connected to the mission. Transparent communication can be critical as you face new challenges. The people relying on your nonprofit are very likely aware of the changing situation your organization faces. Honest and ongoing communication reassures them that you’re focusing on the realities of your situation and lets them know how you’re planning to mitigate the impact of these unpredictable circumstances.

• Involving your team. Be sure to include your team as you consider different approaches and explore new directions. Leaders often feel like they have to present fully formed solutions but the better way to find solutions that hold more meaning to the entire organization starts with bringing team members into the conversation early on so they feel like a part of the solution. Frontline staff may have unique insights into specific challenges that might help you uncover new ways to meet your mission during changing circumstances. Board members with experience in other arenas may also be able to suggest solutions which help your nonprofit approach the situation in a new way. This experience can help open your eyes to proven strategies that can easily translate into success for your organization’s goals.

• Encouraging your team to track the pros and cons of new approaches. As staff members implement new ideas, make sure they document how those concepts work and then evaluate the results during team meetings. This results-based approach communicates that you’re approaching the changing times with a practical process that your organization can depend upon. Once your team uncovers new ideas which prove successful, brainstorm ways to enhance the process as you continue fine-tuning any ongoing implementation.

• Leading with empathy and realism. As the leader of a nonprofit, you understand that your team members are driven by more than just a paycheck. They’re invested in your organization’s mission and feel rewarded when they can see how their efforts make a difference within the community. Times of change require a higher level of empathy with your team. Many of them may struggle with budget constraints that might mean serving fewer people. But communicating honestly to help them understand realistic trade-offs between the funds your organization may have had in the past in comparison to the money available during changing times can help those team members understand the present situation and better handle adjustments in your group’s services.

• Investing in the morale of your team. Leaders often feel compelled to shoulder the burden of uncertainty for their organization by stoically keeping challenges to themselves. But staff members are generally aware of the uncertainty your nonprofit faces. As a result, you may see team members reacting by taking on more responsibility in an effort to bridge the gap. While this impulse can be helpful in the short term, the tendency can easily lead to staff burnout. That’s why taking care of your people is even more important during times of uncertainty. Keep an eye out for team members who are going the extra mile. Take extra steps to let them know you see their efforts and appreciate their commitment to the mission. You may also find that your entire team is stretched to the limit. During times of change be sure to take the time to recognize them for going above and beyond. Giving a shout-out during staff meetings and or giving hand-written notes can mean a lot to staff members – at no cost to your organization. Leading with emotional intelligence during turbulent situations builds trust and can help retain your top employees – at a time when they may be needed the most.

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SOURCES:

“Ask the Expert: Guidance for Leadership in Uncertainty,” Center for Creative Leadership, 5/5/25

“Leading Through Uncertainty:  What Nonprofit Leaders Need Now,” Career Blazers Nonprofit Search

“5 Tips To Grow Your Monthly Giving Program,” DonorPerfect, 2/22/24