Strengthening Boards and Embracing AI for Sustainable Growth in Not-for-Profit Organizations

Rewriting The Nonprofit CEO Playbook

Not-for-profit leaders are accustomed to doing more with less. Still, waves of economic uncertainty, coupled with the rapidly evolving AI landscape, are forcing even the most seasoned leaders to reevaluate and redefine past methodologies and strategies.

Today’s leaders recognize that the decisions they make will have a lasting impact on their organizations’ mission, funding, and strategy. Maximizing the relationship between a Chief Executive Officer and their board, implementing AI literacy, and sharpening fundraising focus are essential for the sustainability and growth of an organization.

Benefits of a Strong Board

The partnership between a CEO and their board is one of shared commitments and a well-crafted strategy. A CEO should be able to lean on their board and, at times, be prepared to hear difficult truths. Board members bear a responsibility to engage with the organization, its executive team, and other key stakeholders.

Organizations that invest in building effective boards often see more stable funding, stronger staff retention and morale, greater influence in their sector, and more substantial donor confidence.

Modern board governance is evolving as the demand for more strategic, diverse, and accountable board members increases. In practice, this translates to broader board representation in terms of age, experience, and diversity. Clearly defining board roles and term limits lays the foundation for continued growth.

“Nonprofits transform their trajectory when boards adopt some of the discipline and accountability models of the corporate world. When CEOs and boards align on clear roles and a shared strategy, they drive greater impact and long-term growth,” said John Mann, Managing Director, The Alexander Group.

Engaged Boards Elevate Fundraising

The top line for fundraising and development activities is always at the forefront of not-for-profit organizations. Cultivating a more engaged board is an effective way for nonprofits to enhance their fundraising efforts, and that starts with empowerment and clear expectations.

Start by setting clear expectations, providing training, and fostering a culture of accountability. A well-informed, mission-driven board can unlock new funding opportunities, leverage its networks, and serve as influential ambassadors for the organization. When donors feel connected and the board is fully invested, fundraising efforts become more strategic, sustainable, and successful.

Embracing AI

From predictive fundraising to automated grant reporting, AI is rapidly changing nonprofit operations. According to the 2024 Nonprofit Standards Benchmarking Survey, 82 percent of organizations have implemented AI technology. AI is quickly becoming a valuable tool in the not-for-profit sector, enhancing an organization’s ability to anticipate donor needs and recommend targeted actions.

Strategic CEOs understand the urgency of thoughtfully investing in AI across everything from software to leadership positions, such as Chief Innovation Officer. Smaller organizations are forming committees that may include board members to explore how to use AI synergistically with various functions. 

Employing AI to do everything from the tedious to the time-consuming leaves staff open to connect in a more meaningful way with the organization’s donor base. Forward-looking not-for-profits are using AI-assisted donor segmentation, chatbots for volunteer engagement, and automated analytics for board reports, building AI literacy among their team members.

Digital fundraising solution OneCause works specifically with not-for-profits and found organizations are most successful when leaning into AI from a solid foundation of personal connectedness. In 2024, 75% of organizations hosting in-person events met or exceeded their fundraising goals, and 76% of those using hybrid models also achieved their targets.

Mission-Minded, Future Focused

It’s a challenging time for the modern non-profit CEO/Director, but within this sea change lies opportunities to serve and grow the organization’s mission.

The mission is the motivator.

“Every nonprofit begins with someone on a mission. To grow the organization, the mission must resonate with others, and someone must articulate the mission in such a compelling way that others embrace it and are willing to support it, not just with their hearts and their volunteer time but also with financial donations,” said Amanda K. Brady, Chief Client Officer/Managing Director. “Whether it is the Founder, a CEO, or a development leader, someone must craft and evangelize a message that brings others into the community and keeps them engaged. It is an existential imperative. In today’s times, leaders must seek, embrace, and utilize innovative tools that build on the organization’s mission.”