In 2025, the stakes for not-for-profit organisations have never been higher. Charities are grappling with mounting pressures: rising operational costs, donor fatigue, escalating competition, and the relentless need to embrace new technologies. At the same time, demand for their services is growing, as crises like housing affordability, natural disasters, and mental health epidemics create unprecedented challenges.
But despite these external pressures, one of the greatest obstacles facing charities isn’t external at all—it’s internal.
When Boards and CEOs fail to adapt, refuse to embrace change, or cling to outdated ways of thinking, they inadvertently undermine their organisations. This isn’t just about missed opportunities. It’s about failing to meet the increasing needs of communities who depend on charities to survive, thrive, and rebuild their lives.
This isn’t a blog to sugar-coat the issue. The fact is, leadership is failing where it is needed most. When nonprofits fall short of their mission, it’s not just a logistical failure—it’s a human one. Let’s go deeper into the interplay between increased need, resistance to change, and leadership failures. More importantly, let’s explore what Boards and CEOs must do to rise to the occasion.
The Perfect Storm: Increased Need Meets Leadership Paralysis
1. The Growing Demand for Nonprofits’ Services
The world isn’t waiting for charities to catch up. Communities are crying out for help, and charities are often the first line of defence.
- The Housing Crisis: Rising rents and limited affordable housing have pushed more families into homelessness. Organisations like housing charities and crisis centres are stretched beyond capacity.
- Mental Health Epidemic: Demand for counselling services has skyrocketed post-pandemic, with many mental health nonprofits unable to meet the need for affordable, accessible care.
- Climate Disasters: From floods to bushfires, charities are being called on to mobilise resources and help communities rebuild after increasingly frequent natural disasters.
The result? Nonprofits are being asked to do more with less, faster than ever before.
2. Leadership’s Failure to Adapt
Here’s where the crisis deepens: while the needs of communities have grown, many Boards and CEOs have failed to evolve. Instead of rising to meet these challenges with innovation and bold decision-making, some leaders have fallen back on outdated practices that no longer work.
Scenario 1: Sticking to the Status Quo
A mental health charity continues running direct mail campaigns because “that’s how we’ve always done it,” even though response rates have plummeted by 40% over the past five years. Staff propose digital campaigns and automation tools to better engage younger donors, but the Board dismisses these suggestions as “too risky” and “not proven.”
The Result:
The charity fails to diversify its donor base. Younger, tech-savvy donors are never reached, and existing donors gradually lose interest. The organisation’s funding stagnates while demand for its services grows.
Scenario 2: Focusing on Survival Instead of Growth
A homelessness organisation is overwhelmed by rising demand but refuses to allocate budget to new donor acquisition campaigns. “We can’t afford to spend money on fundraising,” says the CEO.
The Result:
While they scrape by in the short term, their long-term funding declines. Without a pipeline of new donors, the organisation’s ability to meet future needs diminishes.
Scenario 3: Failing to Embrace Data and Innovation
A disaster relief organisation struggles to retain donors after major emergencies. The Board refuses to invest in data systems, seeing them as “non-essential,” and continues to rely on gut instinct to make decisions.
The Result:
Donor retention drops, fundraising campaigns underperform, and the organisation can’t measure its own impact effectively—undermining its ability to secure funding from major donors and grants.
3. Why Leadership is the Root Cause
The common thread across all these scenarios is leadership failure.
- Boards and CEOs are paralysed by fear of risk.
- They mistake caution for responsibility.
- They fail to see innovation as an opportunity, instead viewing it as a threat.
These aren’t just operational issues—they’re failures of leadership mindset. In a rapidly changing world, the inability to adapt doesn’t just hold organisations back—it actively harms the people they exist to serve.
The Cost of Doing Nothing
When leaders fail to act, the consequences ripple through every level of the organisation:
- For Staff: Burnout skyrockets as employees are forced to work harder with fewer resources. Frustration grows as they see opportunities for improvement ignored by leadership.
- For Donors: Loyalty declines when donors feel like their gifts aren’t being maximised or that the organisation lacks vision.
- For Communities: The biggest cost falls on the people who rely on charities. Fewer resources mean less support for those in need.
The cost of inaction isn’t just financial—it’s a moral failure to deliver on your mission.
What Bold Leadership Looks Like
So, what does stepping up actually mean? Here’s what Boards and CEOs must embrace to meet the challenges of 2025:
1. Courage to Take Risks
Leadership requires making bold decisions, even when they’re uncomfortable.
Scenario:
A children’s charity invests $50,000 in a Peer-to-Peer fundraising platform to empower their most passionate supporters. The initial cost is significant, but leadership sees the long-term potential to engage new donors and diversify revenue streams.
The Result:
Within 12 months, the platform raises $200,000 and introduces 4,000 new donors to the charity.
2. A Growth-Oriented Mindset
Boards and CEOs must shift their focus from scarcity to growth. This means seeing investments in technology, people, and systems as opportunities—not expenses.
Scenario:
A housing organisation hires a data analyst to help them optimise their fundraising efforts. The analyst identifies that donors under 40 are more likely to give when campaigns focus on climate justice, leading to a rebranding of their messaging.
The Result:
The organisation’s donor base grows by 30%, with younger supporters now making up 25% of annual revenue.
3. Prioritising Innovation
Great leaders don’t wait for change to happen—they lead it.
Scenario:
A climate charity introduces automation tools to streamline donor communications. By automating email follow-ups and impact reports, they free up staff to focus on building relationships with major donors.
The Result:
The charity raises 40% more in its annual campaign without increasing staff workload.
4. Investing in People
Your team is your greatest asset. Leaders who prioritise training, support, and collaboration create organisations that thrive.
Scenario:
A mental health charity creates a professional development program to train staff in data analysis, digital marketing, and automation tools.
The Result:
Staff feel empowered, fundraising performance improves, and the organisation builds a culture of innovation.
A Call to Action for Leaders
Charity leaders often speak of their mission to make the world a better place. But here’s the question Boards and CEOs need to ask themselves: Are we doing everything in our power to achieve that mission?
If you’re not willing to take risks, embrace change, and invest in the future, the answer is no.
Final Thoughts
In 2025, leadership isn’t about survival—it’s about transformation. Communities are counting on charities to step up, and that starts at the top. Boards and CEOs have the power to break through stagnation, lead with vision, and create organisations that are not only sustainable but thriving.
As Carlos says: “Leadership isn’t about protecting what you have—it’s about imagining what’s possible. The boldest leaders aren’t the ones who avoid risk; they’re the ones who take it, for the sake of their mission and the people who rely on it.”