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Writer's pictureRenata Bernarde
Nov 18

Nonprofit Leadership

Episode 265 - The Challenges and Rewards of Transitioning from Corporate to Nonprofit Leadership




As I reflect on my latest podcast interview with Nick Grono, CEO of The Freedom Fund, I am struck by the growing interest among corporate professionals to pivot into nonprofit leadership. It's a topic I often discuss with my clients—seasoned executives who, after years of building a career defined by financial success, now seek purpose and fulfillment. This desire for purpose has never been stronger, as we navigate an economic landscape where layoffs and corporate restructuring are leaving professionals questioning the sustainability of their paths.


But making the switch from corporate to nonprofit leadership isn’t as straightforward as some might think. As Nick and I discussed how the nonprofit sector operates with different rules, mindsets, and measures of success. And for those accustomed to traditional corporate roles, understanding these differences is crucial to making a successful transition.


The Fundamental Shift: From Profit to Purpose


One of the first things corporate professionals need to grasp is that nonprofits operate on a completely different axis—one that revolves around impact instead of profit. In the corporate world, success is measured by clear financial returns, whether it’s quarterly earnings or market share growth. The metrics are tangible, measurable, and straightforward.


In contrast, nonprofit success is far harder to quantify. As Nick explained in our conversation, nonprofit organizations are mission-driven, meaning their effectiveness is measured by the change they drive in areas like poverty, human rights, or environmental sustainability. This requires a profound mindset shift for corporate professionals who have spent their careers focused on metrics like profitability or efficiency.


And yet, it's this very shift that often brings corporate professionals to nonprofits in the first place. Purpose is becoming an increasingly central theme for many executives, particularly those in the later stages of their careers. They’ve achieved financial success, but now they want to see their work make a difference beyond the balance sheet. The question is, are they ready for the complexities that come with this pursuit of purpose?


Fundraising: The Nonprofit CEO’s Crucial Role


One of the most eye-opening aspects of nonprofit leadership that we discussed is the importance of fundraising. I often see corporate professionals underestimate the significance of this function in nonprofits. Nick shared that in his role as CEO of The Freedom Fund, fundraising occupies 60-70% of his time. This is a stark contrast to corporate leadership, where revenue generation is typically delegated to sales teams, and CEOs focus more on strategy, operations, or growth.


In nonprofits, the CEO becomes the face of the organization’s fundraising efforts. Donors want to engage with the person at the top, especially when they’re making significant contributions. This means nonprofit CEOs must build relationships, foster trust, and communicate the mission in a compelling way to secure the resources their organizations need to thrive.


Corporate professionals considering a move to nonprofits need to ask themselves: Are you ready to become the chief fundraiser? If the idea of spending most of your time engaging donors and advocating for your cause isn’t appealing, then nonprofit leadership might not be the right fit. But if you are excited by the prospect of building meaningful relationships and using your influence to drive real change, this could be the most rewarding part of the role.


The Collaboration Imperative


Another key theme that emerged in our conversation is the need for collaboration in nonprofits. While corporate culture often rewards competitive behavior and a focus on outperforming competitors, nonprofit leadership requires a different skill set. Nonprofits can only achieve their missions through collaboration—working with other organizations, governments, and communities to tackle complex issues like poverty or slavery.


For those transitioning from the corporate world, this can be a significant adjustment. In business, competition often drives innovation and growth. But in the nonprofit sector, working in silos rarely leads to success. Instead, nonprofits must pool their resources, expertise, and networks to create lasting impact. Leaders in this space must foster partnerships, not rivalry, and create an environment where collaboration is valued over individual achievement.


The Emotional Toll: Burnout and Mental Health


Perhaps one of the most underappreciated challenges of nonprofit leadership is the emotional toll it can take on leaders. Nick and I discussed the mental and emotional burden of working in cause-driven roles, particularly when tackling issues that are deeply distressing, such as human trafficking or extreme poverty.


For corporate professionals used to dealing with financial stress or shareholder pressure, this kind of emotional strain can come as a shock. Nonprofit leaders often feel an intense personal connection to the causes they work on, which can make it difficult to draw boundaries between their work and personal life. Burnout is a real and pervasive issue in the nonprofit world, and leaders need to actively prioritize their mental health to avoid it.


For those making the leap into nonprofit leadership, it’s critical to recognize the importance of self-care and resilience. This isn’t just about maintaining work-life balance—it's about protecting your ability to lead effectively. If you burn out, your organization and the cause you’re working for will suffer.


Purposeful Leadership in Uncertain Times


The themes we touched on in this conversation with Nick Grono resonate deeply in today’s climate, where many corporate professionals are facing an uncertain future. As layoffs ripple across industries and economic challenges persist, more and more executives are rethinking what they want from their careers. For some, this moment of uncertainty presents an opportunity to pursue work that aligns with their personal values and drives social good.


But as we’ve explored, making the switch to nonprofit leadership isn’t as simple as applying corporate strategies to a mission-driven environment. It requires a different mindset, a readiness to embrace new challenges like fundraising, and an openness to collaboration and self-care.


For my clients and listeners, the key takeaway is this: if you’re seeking more purpose in your work, nonprofit leadership can offer that in abundance. But like any career change, it requires preparation, adaptability, and a deep commitment to understanding the unique dynamics of the sector.


As more corporate professionals explore this path, it’s essential to recognize both the rewards and the challenges that come with it. And for those ready to embrace the complexities, the transition to nonprofit leadership could be the most fulfilling chapter of your career.


About our Guest, Nick Grono


Nick Grono is an Australian human rights campaigner. He has been the CEO of the Freedom Fund since its founding in 2014. The Freedom Fund is a collaborative fund dedicated to ending modern slavery and human trafficking around the world.


He has twenty years of leadership experience of US and international nonprofits, and another decade before that working in corporate law, government, and investment banking.


Nick’s past roles include CEO of the Walk Free Foundation, Deputy President of the International Crisis Group, and Chief of Staff and National Security Adviser to the Australian Attorney-General. He has served on many nonprofit boards and currently is a member of the advisory council of Global Witness. He writes and speaks regularly on nonprofit leadership.


Nick has briefed the United Nations Security Council and testified before parliamentary committees in the UK, Australia and the Netherlands. He has appeared on national and international tv and radio shows, and written for various international publications, including the New York Times, The Guardian, Foreign Policy and the Stanford Social Innovation Review.


Nick spent a number of years in his early life sailing around the world in a 100-year-old square-rigged sailing ship with his family and other crew members. He is Australian by birth, picked up Belgian and UK nationalities along the way, and is now lives between London and Brussels. His book “How to Lead Nonprofits”, was published in July 2024.

Resources Mentioned in this Episode

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About the Host, Renata Bernarde

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