Building Better Leaders: The Role of Learning in Nonprofit Success

Aug 19, 2024 | Articles, Non-Profit Industry

In the nonprofit world, leaders who are adaptable, innovative, and able to inspire others are in high demand. Building a culture of learning can help nonprofits cultivate leaders internally, reducing the need for expensive hiring and training processes. However, many nonprofits are hesitant to invest in learning and development (L&D) beyond basic compliance training.

It may seem like a lofty undertaking, but — as we’ll explore below — the benefits of investing in nonprofit leadership training far outweigh the drawbacks. Understanding how L&D fits into an organization’s mission and goals, and choosing a nonprofit-friendly learning management system (LMS), can help nonprofits build more scalable and effective internal leadership development programming.

Improving financial literacy for better fiscal management

As donations from donors of all sizes trend downward, nonprofits must prioritize prudent financial decision-making. Training for financial literacy can be a key step toward continued financial health for nonprofits.

Providing non-finance managers with foundational finance training helps them make more strategic financial choices that optimize the impact of every dollar spent. It can also help organizations identify and develop future leaders who can navigate financial challenges, identify funding opportunities, and allocate resources judiciously.

Regardless of whether or not your employees are on track to leadership roles, providing them with a holistic understanding of core financial concepts like budgeting basics, income statements, cashflow and logistics, and risk management, can empower staff to contribute to a culture of financial responsibility and transparency.

Strengthening strategic planning skills for sound decision-making

In the face of budget constraints, funding and grantmaking challenges, and increasing cybersecurity concerns, strategic planning has never been more vital for nonprofit leaders.

By offering training in strategic planning, project management, and communication skills, nonprofits can help employees make more informed decisions during planning processes, while preparing them for higher-impact leadership duties. Leveraging learning solutions that offer just-in-time learning and microlearning opportunities can ensure that your staff are actively applying these skills on the job.

Empowering employees through professional development

Morale at nonprofits is low, with 30% of nonprofit leaders reporting recruitment and retention challenges, and 45% of nonprofit employees poised to leave their positions by 2025. To combat this, many nonprofit employers are offering more bonuses, implementing more comprehensive DEI initiatives, and providing more continuing education and professional development opportunities.

Internal mobility is a priority for nonprofit employees, which makes accessible and impactful learning more important than ever. With the rise of hybrid and remote work, using an LMS that offers flexible learning options has become a priority for nonprofits looking to attract and retain quality talent.

Customizing learning paths to meet the unique needs and professional development goals of employees can empower them to take ownership of their careers while enhancing job satisfaction and promoting a sense of loyalty to the organization. The impact of investing in nonprofit professional development is clear: providing growth and skill-building opportunities across and organization builds a stronger, more adaptable workforce, capable of driving positive change and more effectively achieving their missions.

Fostering a learning culture for continuous growth

Nonprofits are facing unprecedented challenges such as inflation, rising operational costs, and a shift in beneficiary demands. To effectively navigate uncertainty, nonprofits need to instill in their leadership a growth mindset by building a consistent approach to continuous learning.

With so many online learning options out there, it may be tempting to simply let nonprofit staff seek their own external training. By leaving these employees to their own devices however, organizations may be doing them a disservice. Not every employee knows what training they need to succeed in their role or move up internally; nor does every employee understand how to access the highest quality or most accurate training. Having internally accessible, expert-vetted training materials at their fingertips ensures that employees will gain the skills that are truly relevant to their professional duties, as well as their organization’s goals and mission. Having a learning culture that everyone is accountable for can also help organizations more easily identify and cultivate the leadership potential of their staff.

Creating a collaborative environment where employees can learn from one another’s experiences and expertise is critical for fostering a culture of learning. To encourage collaborative learning, consider implementing virtual and live instructor-led trainings (ILTs), one-on-one coaching programs, and mentorship opportunities. Learning solutions with social learning features like gamification or forums can also help keep learners engaged with their peers. Integrating other interactive features such as AI chatbots, simulations, quizzes, and microlearning modules into training programs can provide practical experience and enable employees to apply their knowledge in real-world scenarios.

How you acknowledge and reward employees for training accomplishments can also shape your organization’s learning culture. Motivating learners can be done in a variety of ways, from providing digital badges to verbally acknowledging learning milestones in public forums, to offering career advancements or financial incentives for learning.

Fostering adaptability in a changing landscape

Nonprofit leaders play a pivotal role in driving innovation in the face of disruption and taking a strategic approach to L&D can help equip those leaders with the tools to thrive and innovate during times of uncertainty.

Providing a robust training in organizational culture, change management, and innovation can shift employee perspectives and encourage individuals to view change as an opportunity for development rather than a setback. Through continuous learning, employees can acquire the skills and knowledge necessary to navigate ambiguity and make well-informed decisions in rapidly changing environments.

Viewing L&D as a strategic tool for building adaptability puts nonprofits in the position to respond to the shifting demands and opportunities they encounter. By investing in their employees, nonprofits can build a workforce that is both resilient and forward-thinking, ultimately advancing their mission.

Getting the right training to your employees when and how they need it can turn a learner into a leader and set your nonprofit up for long-term success. If you’re ready to see how Litmos’ LMS can help, sign up for a free 14-day trial today!