The role of the chief executive officer (CEO) is centered around financial stewardship and community engagement with day-to-day operations.
The position demands a passion for the cause and a strategic skillset, including the ability to manage fundraising, donors, stakeholders, program activities, and organizational growth.
In this guide, we’ll explore the leadership qualities, responsibilities, and salaries of a nonprofit CEO.
Being a nonprofit CEO is about leading with purpose, vision, and a deep commitment to making a difference.
Table of contents:
Difference between a nonprofit CEO and a nonprofit executive director
7 major responsibilities of a nonprofit CEO
Key skills to look for in a nonprofit CEO
What is the salary of a nonprofit CEO?
Nonprofit CEO job description template
Final thoughts on the role of a CEO
Nonprofit CEO job description FAQs
What does a nonprofit CEO do?
Nonprofit CEOs are versatile leaders who wear many hats, with specific responsibilities often tailored to their organization's unique needs.
They develop and implement long-term strategies, lead fundraising efforts, and collaborate with volunteer managers to ensure smooth operations.
As the organization's visionary, the CEO sets the long-term direction, ensuring it remains aligned with the nonprofit's core mission and values. They work closely with the nonprofit board, acting as a bridge between the board and staff.
The CEO is responsible for implementing the board's strategic decisions, providing regular updates on organizational performance, and offering insights to inform board-level decision-making. They also play a vital role in external relations, building partnerships, and representing the organization to stakeholders and the public.
Difference between a nonprofit CEO and a nonprofit executive director
The distinction between the roles varies based on the nonprofit’s size and structure.
7 major responsibilities of a nonprofit CEO
1. Strategic leadership
The CEO is responsible for providing strategic leadership across various aspects of the organization, including:
- Developing and implementing strategic plans
- Identifying new opportunities for growth
- Setting project priorities within the organization
- Building and maintaining relationships with donors and community leaders
- Checking the effectiveness of the strategies and initiatives
2. Financial management
Financial management is one of the most important responsibilities for a nonprofit CEO, as it directly influences the organization's ability to fulfill its mission. Unlike for-profit organizations, nonprofits must look for complex funding sources like donations, grants, and fundraising events.
A nonprofit CEO oversees financial health by developing and managing budgets, monitoring cash flow, and ensuring that all financial practices meet legal requirements.
They are also responsible for preparing financial reports and budgets with the finance team.
3. Fundraising and resource development
The CEO plays a key role in sourcing and securing funding options. Beyond securing funds, they must ensure that donors feel valued and stay informed.
They host donor appreciation events and update donors on the use of funds.
They also oversee other major fundraising strategies, including engaging with major donors and building relationships with potential supporters.
4. Public representation
The CEO is usually the organization's face, representing the organization to the public, media, and other stakeholders.
As leaders, they act as the primary advocates for the organization. This often involves speaking at events to influence public opinion and participating in media interviews.
They are also responsible for managing and handling crises affecting the organization’s reputation.
5. Staff leadership and development
A CEO provides leadership by recruiting, mentoring, and supporting senior board members. An important aspect of their leadership is ensuring the organization maintains a positive work culture.
A good CEO will be responsible for:
- Ensuring that the staff have all the resources and support needed to succeed
- Encouraging open communication
- Setting performance expectations and providing feedback
- Addressing and resolving conflicts
- Improving employee engagement through recognition programs
6. Compliance and risk management
The CEO oversees risk management practices, including legal, ethical, and operational risks. They ensure that the organization:
- Complies with IRS regulations
- Maintains tax-exempt status
- Meets all obligations in contracts and agreements with donors and vendors
- Adheres to health and safety standards
- Adheres to federal and state employment laws, such as workplace safety standards
- Complies with state and federal fundraising regulations, including registration requirements for soliciting donations
Skills a nonprofit organization should focus on when finding a CEO
A good nonprofit CEO should be able to create a great vision for the organization. Beyond just developing this vision, they should also inspire others to work towards achieving it.
They need to be forward-thinking and resilient, with experience and expertise in:
- Donor expertise: Should have experience securing funding and managing donor relationships
- Fundraising expertise: Devise fundraising strategies to sustain the organization
- Operational management: Should be competent in overseeing day-to-day operations
- Staff management: Should be able to manage staff and streamline operational efficiency
- Advocacy: Should be skilled in advocating for your cause through social media
- Public relations: Must be able to keep the organization away from public scrutiny
- Adaptability and problem-solving: Should be adaptable and capable of solving problems
What is the salary of a nonprofit CEO?
The salary of a nonprofit CEO varies significantly depending on the organization's size and budget. According to Statista, CEOs of nonprofit organizations in the U.S. with annual expenses between five and ten million dollars received an average compensation of $184,979.
For larger organizations with annual expenses exceeding $50 million, CEO compensation averaged $364,564.
Nonprofit CEO job description template
Here is a sample job description template you can use when hiring a nonprofit CEO.
Final thoughts on the role of a CEO
A nonprofit CEO has one of the most important roles in driving the success of the organization. Their role covers leadership and mentorship, donor relationships, budgeting, and financial reporting.
The success of a nonprofit CEO is measured in their ability to adapt, learn, and inspire action.
Check out our insightful resources, guides, and best practices on how to manage all aspects of a nonprofit organization.
