Most leaders get into, and stay in, the nonprofit sector because they are mission-driven people at heart. They want to help others, create change, and have a positive impact. This mission orientation is an absolutely critical core value that any nonprofit leader must have—but great nonprofit leaders bring more than a passion for the mission to the job.

After decades of recruiting nonprofit leaders, I’m convinced that there is a short list of skills that, layered on top of that passion, create the foundation for great leadership. I also believe that for every leader, no matter where they are in their careers, there is room for growth in each of these areas.

Here are five fundamental skills that all great nonprofit leaders have:

Communication skills. The ability to communicate effectively—including the ability to listen—is critical. Great leaders can tell a compelling story. They know how to tailor their approach to different audiences. They can move people past pessimism and into excitement. They leverage empathy to help move through disagreements and conflicts. They can adapt their approach from a one-on-one meeting to a small group to an audience of hundreds.

While some people are naturally great communicators, most of us need to actively cultivate and hone these skills. Being open to feedback, practicing self-awareness, and consulting with a communications coach can all help you enhance your communications toolkit.

People and team management. This is one of the most important skills for any leader, but unfortunately, it’s one that too few nonprofit organizations invest in. So many leaders get promoted into management positions with little or no training at all, left to either learn on the job, or worse, continue to be an ineffective manager. People and team management is challenging under the best of conditions. Managing a diverse, mission-driven, highly engaged team under financial and structural constraints may be one of the most difficult aspects of nonprofit leadership. At the same time, it’s people and team management that is absolutely vital for achieving nonprofit missions. The ability to build a strong team and organizational culture and find ways to unlock potential and harness the power of a team can be the differentiator that takes a leader—and an organization—from good to great.

If you know this is a growth area for you, seek out opportunities to sharpen your skills. An executive leadership class or coaching engagement can be transformational. But you can also make great strides by reading books and articles about management, finding a great mentor, and seeking greater awareness of your strengths and relative weaknesses when it comes to management.

Strategic-thinking skills. Strategic thinking is about problem solving. It’s about the ability to envision what could be and how to get there. It’s about being able to analyze a problem or challenge from multiple perspectives. Strategic thinking is also about the implementation of plans and the management of people and other resources to achieve big goals. This is one of those leadership skill sets that can be hard to evaluate and define but is almost always a hallmark of a great leader. There are many ways to hone your strategic thinking and problem-solving skills, including getting involved in strategic projects and initiatives, carefully observing mentors who are strong strategists, working with a coach, taking classes, and reading. Continual learning and approaching problems with an open mind are part of strategic thinking, so pushing yourself in these two areas can also help advance your overall strategic mindset.

Relationship-building skills. Whether it’s building a strong connection to a donor or an external partner, authentic, productive, and collaborative relationships are essential for mission-driven work. Great relationship builders understand not just how to establish and grow relationships, but also which relationships are important for their organizations and goals. Relationship skills typically rely on emotional intelligence, active listening, and trust building. Being aware of and working to enhance your abilities in these areas can help you become a better relationship building throughout your career—and in your personal life.

Finance and budgeting skills. Great nonprofit leaders don’t need to have CFO-level finance skills. But being comfortable with budgets, financial analysis, and forecasting is critical for making sound organizational decisions. If you don’t have exposure to budgets, ask your manager if there are any opportunities to learn more, or consider doing some research to begin understanding basic Profit and Loss statements and other standard budgeting documents. 

Extraordinary nonprofit leaders possess a wide range of skills, experiences, and characteristics. The list above represents the core competencies that great leadership in the mission-driven sector requires.

Molly Brennan is founding partner at executive search firm Koya Partners, which is part of the Diversified Search Group, where she is also the Nonprofit and Social Impact Practice lead. A frequent contributor to Philanthropy News Digest and other publications, Brennan also authored The Governance Gap: Examining Diversity and Equity on Nonprofit Boards of Directors.