A thriving nonprofit culture is essential for both impact and sustainability. Whether you're trying to retain top talent or enhance team collaboration, fostering a positive workplace culture can dramatically boost your nonprofit's effectiveness. At PhoenixFire, we understand that nonprofit culture isn't just about good intentions—it's about creating an environment where team engagement, collaboration, and passion drive real results.
Imagine a workplace where each person works hard and is eager to contribute, where collaboration is the norm, and employees stick around for years. I’ve been lucky enough to be a part of a few organizations like that, and like most people, I’ve also worked in settings where employees are siloed, distrustful, and unaligned.
Many nonprofits attempt to improve collaboration by implementing standard trust-building exercises, but without addressing deeper systemic issues like poor communication frameworks or leadership bottlenecks, those efforts often fall flat. At PhoenixFire, we help teams identify and fix the root causes of dysfunction, ensuring that these exercises don’t just feel good but actually drive lasting change.
In this post, we’ll cover four key elements that will help your nonprofit build a culture where teams thrive and missions succeed: leading with empathy, promoting clear communication, encouraging a founder’s mentality, and ensuring diverse voices are heard.
Nonprofit Culture Strategy: Building Trust and Connection through Empathy
At the heart of every great nonprofit is its people. Whether it’s volunteers, employees, or donors, the success of a nonprofit depends on building strong relationships. One of the most powerful ways to build a positive workplace culture is through empathy.
Multiple studies show that empathetic leadership leads to stronger results. When employees (or students!) are stressed or feel undervalued, their productivity and attention suffer. One study from the Center for Creative Leadership found that “Empathy is positively related to job performance. Managers who show more empathy toward direct reports are viewed as better performers in their job by their bosses.”
We helped transform one nonprofit organization in the Midwest that was struggling with silos between departments and an executive director who was disconnected from the daily struggles of their team. We heard from employees that they were burned out and unhappy, and knew we needed to ignite a positive workplace culture shift in this nonprofit. The PhoenixFire teamwork coached the nonprofit’s directors to start listening with empathy. We created a weekly feedback mechanism that gave team members a direct line to the Executive Director. We added in team meetings where all voices were valued and implemented technology that allowed for immediate, clear feedback.
Leading with empathy doesn’t mean ignoring accountability or avoiding tough decisions. Instead, it means creating an environment of trust, respect, and compassion where team members feel valued and empowered. Leaders who model empathy-driven behavior prioritize well-being and take the time to truly understand the needs of their teams.
Practical Applications for Nonprofits
Scheduling regular one-on-one meetings with staff to check in on both personal and professional well-being. When you learn about extenuating life circumstances, offer practical accommodations.
Create anonymous feedback systems where staff can safely voice concerns or ideas, then address those concerns with vulnerability.
Nonprofit Culture Strategy: Clear Is Kind
In any organization, clarity is crucial, but in nonprofits—where teams are often small and resources stretched thin—clear communication becomes even more essential. Lack of clarity can lead to confusion, inefficiency, and burnout, undermining the mission of the organization.
I think back to my early days in the classroom, getting observed by various leaders. My principal, a people-pleaser who cared about all of us, would watch my class and tell me, “Well, you’ll get it. Just keep trying.” That vague encouragement did nothing at all for me. In contrast, the incredibly experienced Math department head told me a week later, “The kids are bored. Stop lecturing and have the kids do more.” All of the sudden, I was armed with something to change. I didn’t need platitudes– I needed actionable feedback to improve.
Brené Brown, author of Dare to Lead, writes,“Clear is kind. Unclear is unkind. Feeding people half-truths or BS to make them feel better (which is almost always about making ourselves feel more comfortable) is unkind.” Brown emphasizes that leaders who are clear in their expectations, communication, and feedback help create a positive and productive culture. Being vague or withholding information only leads to frustration and insecurity among team members.
At PhoenixFire, we make a commitment to our clients to be direct and clear, even if the truth is uncomfortable to hear. We had to tell one client that they weren’t ready to apply for grants because their budgets were incomplete. That conversation was tough, but we knew they would never receive funding if we didn’t address the problem. Then, we rolled up our sleeves and got to work.
Clarity promotes understanding, minimizes conflict, and ensures that everyone is working toward the same goals. When expectations are communicated clearly, team members know where they stand and how they can contribute to the nonprofit organization’s success.
Practical Applications for Nonprofits
Set Clear Expectations: Define roles, timelines, and goals clearly for every project. Clear expectations help staff stay focused and aligned.
Private Correction, Public Praise: Clear feedback is essential to create a high functioning nonprofit. Giving praise publicly can inspire your team. Build trust by providing critical feedback privately, never in front of an employee’s peers.
Nonprofit Culture Strategy: Creating a Founder’s Mentality
One of the most powerful cultural shifts a nonprofit can make is fostering a sense of ownership among its team members. When employees feel like they own the mission and outcomes of the organization, they are more engaged, creative, and accountable, all parts of a positive workplace culture.
What Is a Founder’s Mentality? According to Chris Zook and James Allen, authors of The Founder’s Mentality, this concept refers to the mindset that early-stage founders possess: a passionate commitment to the mission, a sense of ownership over results, and a willingness to be held accountable. This mentality is often what makes small startups or young nonprofits successful in their early stages because all team members feel a sense of responsibility and drive for the organization’s success.
It’s no accident that PhoenixFire’s tagline is “Inspire Ignite Transform.” It’s the invigorating attitude of the founder's mentality that can inspire a team to achieve more.
Practical Applications for Nonprofits
Empower Team Members: Allow staff the autonomy to make decisions and solve problems, much like founders would. Empowering team members fosters innovation and creativity.
Celebrate Ownership: Recognize and celebrate instances where team members take ownership of their roles and make meaningful contributions to the organization.
Promoting Diverse Voices to Build a Positive Workplace Culture
One of the most important aspects of creating a positive culture is ensuring that diverse voices are not only present but are actively promoted and heard. Research consistently shows that diversity in leadership and decision-making drives better outcomes. For nonprofits, where the work is often mission-driven and community-focused, incorporating a wide range of perspectives is essential.
Diverse teams bring different experiences, perspectives, and ideas to the table, leading to more creative problem-solving and innovation. McKinsey’s “Diversity Wins: How Inclusion Matters” report highlights that companies with greater gender and ethnic diversity are more likely to outperform their peers. Specifically, the report found that companies in the top quartile for ethnic diversity are 36% more likely to financially outperform those in the bottom quartile. This finding holds true in nonprofits as well, where diverse teams are better equipped to understand and address the complex social issues they seek to solve.
Practical Applications for Nonprofits
Inclusive Leadership: Ensure diversity in leadership roles to reflect a broad range of perspectives in decision-making.
Amplify Marginalized Voices: Create opportunities for underrepresented voices to be heard and valued within the organization. Encourage open dialogue where all staff feel comfortable sharing their ideas.
The Intersection of Love, Clarity, Ownership, and Diversity
Building a positive culture isn’t about focusing on just one element—it’s about weaving together a culture that integrates empathy, clarity, ownership, and diversity. When these elements intersect, nonprofits create an environment where employees are motivated, valued, and committed to the organization’s mission.
We know that one of the most powerful ways nonprofits can ensure long-term sustainability and success is by encouraging and keeping their top talent. Nonprofit leaders can build environments where their teams feel empowered, supported, and inspired to make an impact.
Nonprofit leaders often feel overwhelmed by tight budgets, high turnover, and mounting pressures to deliver results. But creating a high-functioning team starts with your commitment to fostering a culture of trust, accountability, and open communication. At PhoenixFire, we’ve helped nonprofit leaders like you tackle these exact challenges—and we’re here to support you as you take the first step in creating a positive workplace culture.
At PhoenixFire Strategic Consulting, we believe that a thriving culture is the foundation of every successful nonprofit. If your team is struggling to align, we’re here to help. Contact us today to see how we can work with you to transform your culture, ignite your team’s passion, and achieve greater impact.
Sources:
1. Brown, Brené. Dare to Lead: Brave Work. Tough Conversations. Whole Hearts. Random House, 2018.
2. Zook, Chris, and James Allen. The Founder’s Mentality: How to Overcome the Predictable Crises of Growth. Harvard Business Review Press, 2016.
3. Hunt, V., Prince, S., Dixon-Fyle, S., & Yee, L. (2020). Diversity wins: How inclusion matters. McKinsey & Company. www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters
4. Center for Creative Leadership. (2020). Empathy in the workplace: A tool for effective leadership. https://cclinnovation.org/wp-content/uploads/2020/03/empathyintheworkplace.pdf
A good workplace environment is what helps me get through the stresses of the day!