The Little Book of Nonprofit Leadership

The Little Book of Nonprofit Leadership

An Executive Director's Handbook for Small (and Very Small) Nonprofits

What does an Executive Director actually do? And how can you lead your organization to a stronger place?

Nonprofit expert Erik Hanberg wrote The Little Book of Nonprofit Leadership to speak directly to Executive Directors of small (and very small) nonprofits who are asking these questions. EDs, especially at small nonprofits, tend to be dropped into the deep end of the pool with the expectation that they know how to swim. The Little Book of Nonprofit Leadership will be a welcome rescue line.

The book is filled with practical tips and big-picture ideas about:

  • the basics of the job
  • program, people, and money—the three essential areas that a nonprofit ED needs to master
  • working with your board (including how to ask for a raise!)
  • your first 100 days as a new ED
  • a guide to being a part-time Executive Director
  • and more, including access to bonus chapters and special resources!

Erik Hanberg has twenty years of nonprofit experience at organizations of all sizes. He’s channeled that experience into his four “little books” for nonprofits, which together have sold tens of thousands of copies.

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I most definitely recommend this book to Executive Directors of small non-profits. It is a great overview of areas an Executive Director needs to pay attention to. It has a good balance of dealing with day-to-day, looking at big picture, growing the organization, and dealing with the board.
Funmi Akinyele, Ph.D.
Chief Executive Officer, Food Basket Foundation International (FBFI), Ibadan, Nigeria

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Full Table of Contents with Chapter Descriptions

INTRODUCTION: WELCOME TO NONPROFIT LEADERSHIP

Welcome to the exciting world of nonprofit leadership! Where there’s a new fire every day begging to be put out, and everyone needs something from you. Right now. The author shares his own story of becoming managing director of a nonprofit movie theater at age 23, illustrating that nonprofit leaders come from all backgrounds and at all stages of their careers. This book is for executive directors at organizations with budgets under $1.5 million (small nonprofits) and under $250,000 (very small nonprofits), plus anyone running a young nonprofit regardless of size.

PART 1: MISSION, PEOPLE, MONEY

Chapter 1: What Does an Executive Director Actually Do?

The core of the ED role explained through Linda, Executive Director of the Smallville Historical Society, who feels overwhelmed leading school tours instead of leading the organization. Learn the critical distinction between working IN your nonprofit versus working ON your nonprofit, and between thinking like an employee versus thinking like a leader. The chapter breaks down the ED’s fundamental responsibilities: making decisions (the core of the job), managing operations, serving as the board’s employee while also being their expert, marketing and public relations, fundraising, and representing the organization. Understand why decision-making ability matters more than hours worked.

Chapter 2: The Mission

Your nonprofit exists to accomplish something specific in the world—this is your mission. Learn how to evaluate whether your programs actually advance your mission or just fill time, how to say “no” to mission creep, when it’s appropriate to evolve your mission, and how to keep mission at the center of every major decision. Covers developing new programs, sunsetting ineffective ones, measuring impact versus measuring activity, and explaining your mission clearly to everyone from donors to board members to the general public. Includes guidance on mission statements that actually work.

Chapter 3: The People

Managing people is often the hardest part of nonprofit leadership. This comprehensive chapter covers hiring (creating job descriptions, interviewing, making offers), onboarding new staff, having difficult conversations, conducting evaluations, managing volunteers, working with contractors, and knowing when to let someone go. Learn how to build a positive workplace culture, delegate effectively, provide feedback that actually improves performance, and avoid the trap of doing everything yourself because “it’s faster.” Special sections on managing staff who have been there longer than you and transitioning from peer to supervisor.

Chapter 4: The Money

Financial management demystified for EDs who don’t have finance backgrounds. Covers budgeting (creating realistic budgets, the budgeting calendar, involving staff and board), reading financial statements (P&L and balance sheet basics), managing cash flow, setting financial policies, working with bookkeepers and accountants, and preparing for audits. Learn the difference between restricted and unrestricted funds, why cash reserves matter, how to present finances to your board, and when financial problems require immediate board notification. Includes practical advice on things like expense reimbursement, credit cards, and preventing theft.

PART 2: WORKING FOR A BOARD OF DIRECTORS

Chapter 5: Ten Commandments for Working with Boards

Essential principles for the ED-board relationship: Remember you work for the full board, not individual board members. Communicate consistently and honestly. Bring problems AND solutions to the board. Don’t surprise your board president. Respect board members’ time by preparing well. Help your board succeed at governance, not micromanagement. Be the organization’s institutional memory. Know when to push back and when to accommodate. Build trust through transparency. Celebrate your board’s contributions. This chapter transforms how you think about board dynamics.

Chapter 6: Getting the Most from Your Board

Practical strategies for engaging your board productively: preparing board packets that actually get read, writing effective executive director reports, setting agendas with your board president, managing committees effectively, asking board members for help without making them feel used, teaching your board about fundraising, and redirecting board members who try to assign you work. Learn the art of working with your board president (the “hinge” that the nonprofit turns on), building trust through regular check-ins, and creating a partnership that strengthens the whole organization.

Chapter 7: Asking Your Board for a Raise

A complete guide to approaching your board about compensation: knowing when it’s appropriate to ask, researching comparable salaries, building your case, choosing who to approach first, preparing your presentation, and handling the conversation professionally. Covers what to do if they say yes, what to do if they say no, and why performance-based pay or fundraising commissions are considered unethical in the nonprofit world. Includes advice on rehearsing the conversation and following up in writing.

PART 3: APPENDICES (Everything That Didn’t Fit in the Rest of the Book)

Chapter 8: Your First Hundred Days at a Nonprofit

For new executive directors: the honeymoon effect and why it matters, meeting individually with every board member, learning the organization’s history, identifying quick wins, building relationships with staff and key stakeholders, understanding the financials deeply, and avoiding the trap of changing everything immediately. Covers how to listen more than you talk initially, how to build trust before making changes, and which fires to put out first. Includes a 100-day checklist.

Chapter 9: Part-Time Job, Full-Time Leader

Special guidance for part-time executive directors—a common reality for very small nonprofits. How to prioritize when you have limited hours, setting boundaries so the job doesn’t consume your life, communicating your schedule clearly to board and stakeholders, delegating effectively with limited staff, and knowing when the organization has outgrown the part-time model. Addresses the unique challenges of trying to lead transformational change while only working 20 hours a week.

Chapter 10: On Letting Go

For EDs considering leaving their position: recognizing when it’s time to move on, planning your exit timeline, preparing the organization for transition, managing the emotional aspects of departure, deciding what to tell people and when, and leaving your successor in the best possible position. Covers retirement planning, transitioning to a new role within the organization, and the bittersweet reality of watching someone else lead the organization you built.

Key Topics Covered

  • Leadership Fundamentals: Working ON the nonprofit vs. IN the nonprofit, leader mindset vs. employee mindset, decision-making as the core ED responsibility, time management and prioritization, delegation and letting go of control, managing up, down, and across, building organizational culture, change management and resistance
  • Mission & Programs: Evaluating program effectiveness, saying no to mission creep, developing new programs strategically, sunsetting programs that don’t work, mission statements that actually matter, communicating mission to diverse audiences, balancing mission purity with revenue needs, impact measurement vs. activity tracking
  • Staff Management: Job descriptions and recruitment, interviewing and hiring effectively, onboarding new staff members, providing regular feedback, conducting performance evaluations, having difficult conversations, managing staff who’ve been there longer than you, firing and transitioning people out, building positive workplace culture, preventing and addressing burnout, staff development and training
  • Volunteer Management: Recruiting and retaining volunteers, volunteer job descriptions, screening and background checks, recognition and appreciation, managing volunteer-staff dynamics, when volunteers become problems
  • Financial Management: Budget creation and monitoring, cash flow management, financial reporting to the board, understanding P&L statements and balance sheets, restricted vs. unrestricted funds, reserves and rainy day funds, working with bookkeepers and accountants, audit preparation and management, internal controls and theft prevention, financial policies and procedures, expense management
  • Board Relations: Understanding the ED-board dynamic, working with board presidents effectively, preparing board packets, writing executive director reports, managing board committees, setting board meeting agendas, presenting to the board, handling difficult board members, redirecting board members who overstep, building trust through communication, managing board expectations
  • Fundraising for EDs: The ED’s role in fundraising, working alongside board fundraisers, major donor relationship management, grant writing and reporting, annual appeals and campaigns, donor stewardship and thank-yous, telling your story effectively, fundraising when you hate asking for money
  • Marketing & Communications: Brand development and consistency, website management, social media strategy, email newsletters, press relations and media, annual reports, community presence and networking, public speaking and representation
  • Compensation & Self-Care: Researching appropriate salary ranges, negotiating compensation, asking for raises professionally, benefits beyond salary, professional development, work-life balance, preventing ED burnout, building personal resilience, finding peer support
  • Special Situations: First hundred days as new ED, part-time executive director role, succession planning and transitions, leaving your ED position, managing during crises, organizational growth and scaling, mergers and partnerships

Specific Problems This Book Solves

For New Executive Directors

  • “I just started as ED—where do I even begin?”
  • “I’m drowning in day-to-day tasks and can’t find time to lead”
  • “I’ve never managed people before and don’t know what I’m doing”
  • “The board seems to expect me to know everything—I don’t”
  • “I came from the corporate world—how is nonprofit leadership different?”
  • “I was promoted from within and now I’m supervising my former peers”
  • “I’m working 60 hours a week and still can’t keep up”

For Struggling Executive Directors

  • “I do all the fundraising because my board won’t help”
  • “I can’t figure out how to delegate without everything falling apart”
  • “My board micromanages me constantly”
  • “I have a staff member who isn’t performing—how do I address it?”
  • “I’m doing everything myself because it’s faster than training others”
  • “The finances are a mess and I don’t know where to start”
  • “I can’t tell if our programs are actually working or just keeping us busy”

For EDs Dealing with People Problems

  • “How do I fire someone who’s been here forever but isn’t doing their job?”
  • “My volunteers are driving me crazy with demands and drama”
  • “A board member treats me like their personal assistant”
  • “I need to have a difficult conversation with an underperforming staff member”
  • “How do I build a functional team when everyone works part-time?”
  • “My predecessor is still very involved and undermining my authority”

For EDs Facing Money Issues

  • “I don’t have a finance background—how do I read these reports?”
  • “Our cash flow is terrible and I don’t know how to fix it”
  • “The board keeps asking me financial questions I can’t answer”
  • “We don’t have a real budget, just guesses”
  • “How do I prepare for our first audit?”
  • “I think there might be financial irregularities—what do I do?”
  • “I need to ask for a raise but don’t know how to approach it”

For EDs Managing Board Relationships

  • “My board won’t make decisions—they just defer everything to me”
  • “The board president and I don’t see eye-to-eye on major issues”
  • “Board members keep calling me with random ideas and assignments”
  • “I feel like I’m managing my board instead of them governing”
  • “How much detail should I include in my ED report?”
  • “A board member is spreading rumors about me to other board members”
  • “How do I tell my board we can’t afford something they want to do?”

For Part-Time Executive Directors

  • “I only work 20 hours a week—how do I prioritize?”
  • “The board expects full-time results from part-time work”
  • “I can’t attend daytime meetings or events because of my other job”
  • “How do I prevent board members from calling me constantly?”
  • “When I’m not there, nothing gets done”

For EDs Considering Departure

  • “I think it’s time to leave—how do I know for sure?”
  • “How much notice should I give?”
  • “What do I tell the board, and when?”
  • “How do I prepare the organization for my departure?”
  • “I’m worried the organization will fall apart without me”
  • “I feel guilty about leaving—how do I deal with that?”
  • “Should I help find my replacement?”

For Organizations Hiring EDs

  • “What should we realistically expect from our first executive director?”
  • “How do we onboard a new ED effectively?”
  • “Our ED seems overwhelmed—how can we support them better?”
  • “Is our ED compensation competitive?”
  • “How do we evaluate ED performance?”
  • “When should we promote our program director to ED?”

A wide-ranging and compelling explanation of what it takes to do a nonprofit executive director’s job well… Hanberg is a highly engaging writer, and he shows himself to be adept at shifts in pacing that make for fluid reading—and which are generally rare in leadership-related books… A comprehensive guide to managing and leading a small nonprofit organization…

Kirkus Reviews

I am a new ED at a newly formed nonprofit, and I learned a lot reading this book. All of the information presented was clear and didn’t leave me with any lingering questions – just action items!

Bri Fairley
Atlas Aphasia Center

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