Let’s talk about shifting away from a superhero or scarcity mindset as nonprofit and social enterprise leaders. There is valuable data in this post on how burned out the sector is, along with great tips for managing it. And…..it just keeps gettign harder. There are so many threats at the federal level to nonprofit funding right now, and they are trickling down in very real ways. In my experience, the most stressful times in my career have come during periods of change. This was often due to budget constraints, but sometimes, it was because I didn’t believe I could trust others to catch up with the pace of growth and change. Or I didn’t think I had the time to onboard others well, and so I just did it myself. This is not sustainable. Even in hard times, especially in hard times…..even if budgets are tight….we must find ways to scale our work based on our staff capacity.
Two key takeaways:
- A well-calculated, risky budget decision can accelerate progress—both financially and in creating a more sustainable workload. We must be willing to take more risks in the sector.
- There is always someone out there who can effectively help relieve your workload while also challenging and sharpening your leadership skills—whether that’s a team member, contractor, or consultant.
- Sometimes the right answer is to scale back or sunset a program for better missional results.
Why Superhero and Scarcity Mindsets Are Harmful
The nonprofit sector is uniquely driven by passion and purpose, but these same motivators can become double-edged swords. When leaders feel the weight of an organization’s mission solely on their shoulders, it’s easy to slip into a “superhero mindset”—believing that everything depends on them. When paired with a scarcity mindset—the belief that there’s never enough time, money, or resources—it creates the perfect storm for chronic stress and burnout.
The Chronicle of Philanthropy sheds light on this reality. Many nonprofit CEOs face overwhelming workloads, financial pressures, and the challenge of leading understaffed, under-resourced teams. Compounded by systemic challenges, many leaders feel trapped in a cycle of overwork.
Despite these challenges, there’s some good news in the article:
- More nonprofits now have larger operating reserves than before the pandemic.
- Financial sustainability across the sector has increased.
However, many leaders surveyed are considering cutting staff or not refilling vacant positions due to funding concerns—potentially exacerbating the burnout crisis.
Similarly, Nonprofit Quarterly’s article, “Burnout and Staffing Shortages Continue to Challenge Nonprofits,” highlights the sector’s ongoing struggles. When leaders hesitate to delegate or invest in skilled team members, they inadvertently perpetuate these challenges.
So, how can nonprofit leaders break free from these limiting mindsets? Below are three key strategies.
1. Take Calculated Risks with Your Budget
While budget constraints are a reality for most nonprofits, playing it too safe financially can hinder growth and increase workloads. Taking a calculated risk—such as hiring additional staff or investing in new technology—can pay significant dividends.
For example, research from Nonprofit Quarterly shows that organizations investing in proactive staffing solutions saw improved operational efficiency and staff morale over time.
A practical way to approach this is by analyzing the return on investment (ROI) of a bold financial decision:
- Would hiring a development director free up the executive director’s time for strategic planning?
- Could investing in a project management system reduce team inefficiencies?
While the immediate cost may feel daunting, the long-term benefits often outweigh the risks.
2. Invest only in what brings the most impact for your missional dollars
Look at your service array closely. Do you know how much each program costs? Are you clear on the impact of each? Sometimes organizations find themselves with limited revenue to do the work and fail to realize that one program is financially draining the others. A program impact effort analysis might help you make some important decisions. You can read more about that here, or reach out to us for a consultation.
- Are there pieces of your work that a partner organization could do better, allowing your team to focus on what they do best?
- What if you let go of one program and freed up your team to spend more time on where you are getting the best results?
3. Trust and Leverage Your Team
A common barrier to delegation is the fear that no one else can do the job as well as you. This mindset not only increases stress but also stifles organizational growth.
The Chronicle of Philanthropy emphasizes the importance of building trust within organizations. Leaders who empower their teams often find that delegation not only lightens their workload but also enhances overall organizational capacity.
Heightened Development has previously explored distributed leadership as a tool for leadership development and succession planning. Shifting to a shared leadership model requires a cultural shift and systematic changes, but it can significantly improve long-term sustainability.
For leaders interested in this transition, Ananda Valenzuela’s work with RVC Seattle is an excellent example of how organizations can implement advice-driven decision-making processes.
4. Invest in Higher-Skill Talent
While it may seem counterintuitive to spend more on higher-skilled professionals in a resource-limited environment, this investment often yields significant returns.
Hiring experienced professionals who can immediately contribute allows organizations to:
- Save time and resources by reducing the need for constant oversight.
- Build a leadership team that operates independently and efficiently.
- Reduce staff turnover by ensuring employees are well-qualified and satisfied in their roles.
Data shows that organizations experience less turnover when staff members are highly skilled and trusted to make independent decisions. Moreover, these professionals can serve as thought partners, providing fresh perspectives and strategic insight that ultimately strengthen leadership.
By surrounding yourself with talented individuals, you’re not only reducing your workload but also elevating your own leadership skills—allowing you to execute your mission with greater impact.
Final Thoughts
Breaking free from superhero and scarcity mindsets requires intentionality. By taking calculated risks, investing in what works best for your organization, trusting your team, and investing in high-level talent, nonprofit leaders can create a more sustainable workload for themselves and their organizations.
Sometimes, a strategic assessment can help identify where to take financial risks and pinpoint capacity gaps. If you need support in this area, Heightened Development specializes in helping organizations navigate these challenges.