Nonprofit Executive Director Career Guide [+Salary]

Stepping into a nonprofit leadership role is a significant career milestone that requires careful consideration — and a lot of preparation. Most organizations typically seek candidates with anywhere between five and 10 years of management and leadership experience, whether in the for-profit or nonprofit sector. 

Experience aside, the most critical factor in being selected to lead a nonprofit is your ability to demonstrate the right skills, competencies, and passion necessary to thrive in such a demanding role. Do you have what it takes to be a nonprofit executive director or CEO? 

Read on to find out.

What Is a Nonprofit Executive Director/CEO?

A nonprofit executive director or chief executive officer (CEO) is the highest-ranking position within a nonprofit organization. They are typically appointed by the organization’s board of directors, a collective of stakeholders responsible for making key decisions about a nonprofit’s mission, finances and leadership. While there is no practical distinction between the role titles, choosing one over the other typically comes down to the organization’s preference.

The executive director/CEO role is multifaceted; it primarily entails managing the organization’s daily activities and steering it toward achieving its mission and vision. The director is responsible for determining the right mix of talent, tools and resources needed to successfully implement programs, while acting as a liaison between the organization and a wide range of stakeholders, including the board of directors.

What Does a Nonprofit Executive Director/CEO Do?

In general, the executive director/CEO is responsible for managing their organization’s administration, programs and strategic planning to ensure they can fully serve their communities. Depending on the size of the nonprofit, they may supervise the daily activities of the organization, overseeing departments such as marketing, fundraising, human resources and program development.

Key responsibilities of a nonprofit executive director may include:

In larger nonprofits, there may be other department heads who can take on some of these responsibilities, such as financial management or public relations. However, many nonprofits are run by a small staff, so the executive may play a more significant role in these areas.

Nonprofit Executive Director Skills and Education

While a nonprofit executive director’s daily responsibilities are many and varied, certain skills and educational qualifications are essential for the role. 

• Leadership: Know how to lead a team with vision and inspiration.
• People management: Be proficient in managing staff and volunteers to foster a productive work environment.
• Financial literacy and budget management: Demonstrate an ability to read and understand financial documents, including planning and overseeing the organization’s budget.
• Communication: Display excellent verbal and written communication skills.
• Articulation: Have the ability to clearly articulate the organization’s vision, mission, theory of change, and strategic direction.
• Problem-solving: Be equipped to identify problems and develop effective solutions.
• Delegation: Display competence in assigning tasks and responsibilities appropriately.
• Active listening: Exhibit skill in listening to and understanding the needs and feedback of others.
• Time management: Effectively prioritizes tasks and allocates appropriate time to execute them. 
• Adaptability: Be flexible to adapt to changing circumstances and environments.
• Passion: Have a strong passion for driving the nonprofit’s mission and creating positive change.
• Cultural competency: Showcase the ability to align with and contribute positively to the organization’s culture while respecting differing backgrounds and points of view.
• Networking: Be able to forge connections with professionals and other stakeholders who can collaborate with or otherwise benefit the organization. 

In terms of education, nonprofit executive directors can come from a diverse range of educational backgrounds. They often have undergraduate degrees in:

• Nonprofit Management
• Business Administration
• Public Administration
• Social Work
• Political Science
• Communications
• Marketing
• Finance
• Economics
• Psychology
• Sociology
• Education
• Human Services
• Community Development
• Counseling

Directors may also have degrees in a field specific to the nonprofit’s services, such as environmental studies or medicine. 

Do Nonprofit Executive Directors Need Master’s Degrees?

The demand for leadership candidates in nonprofits to have advanced degrees has grown, prompting many nonprofit directors to pursue advanced or terminal degrees relevant to their profession. While not always mandatory, having an advanced degree, such as a Master’s in Nonprofit Management, Business Administration, Public Administration or a related field, can significantly enhance your chances of securing a leadership position in a nonprofit setting.

How to Become a Nonprofit Executive Director/CEO

Becoming a nonprofit executive director or CEO requires a blend of education, experience and the crucial skill of networking. Here are some simplified steps to becoming a leader in the nonprofit sector:

Step 1: Earn a relevant education. 

If you know you want to lead nonprofits before entering an undergraduate program, choose a relevant major. You can study business, public administration, marketing, public relations, sales, communications or a similar field. Taking classes in corporate finance, business management, logistics strategy and media relations can help you build a strong foundation of knowledge and skills.

If you have an undergraduate degree and want to become a nonprofit leader, it’s highly recommended that you pursue a master’s degree. Choose a relevant field such as nonprofit management, public administration or business administration (MBA). Graduate programs that offer classes in leadership, strategic planning and financial management can serve as ideal preparation. 

If your goal is to work in a specific field within the nonprofit sector, it helps to have a background related to that field. For example, a degree in environmental science is ideal preparation for working at an environmental nonprofit; a healthcare administration background is ideal for a medical nonprofit, and so on. 

While each of these paths can lead to a role in nonprofit leadership, nonprofit-specific degrees are particularly suited for this purpose. Other types of degrees can be valuable and contribute significantly, but they often lack the specialized insights that a nonprofit management degree provides—especially in areas like fundraising, finance, governance, and volunteer management.

Step 2: Gain experience. 

If you’re new to the world of nonprofits, start small. 

Begin by applying to entry-level roles in private organizations or government agencies. Once you have some professional experience, consider applying for more advanced positions such as outreach coordinator, administrator, team leader or fundraising manager to develop a broad skill set.

Volunteering, internships, and serving on a board, are also great ways to get your foot in the door and familiarize yourself with nonprofit operations. As a volunteer, you can engage in outreach and fundraising efforts, join strategic planning or fundraising committees, or help organize events. Similarly, internships offer hands-on experience and strengthen your professional resume, while board service provides a broad perspective on nonprofit leadership at the CEO level and allows you to develop skills that you might not have the chance to practice otherwise.

No matter your role, always strive to improve your collaboration and communication skills through teamwork and daily interactions.

Step 3: Network and find a mentor.

Use networking websites to connect with industry leaders and find mentors within your organization. As someone with more experience in your field of interest, a mentor can help you build a professional network and connect with other nonprofit professionals. If you can, establish a working relationship with an experienced executive director or manager in the nonprofit sector.

Step 4: Pursue professional development. 

In addition to advanced degrees, professional certificates are also a great way to enhance your skills and demonstrate your passion for nonprofit leadership. You may want to subscribe to industry publications or websites that report on trends in nonprofit management so you can stay up-to-date on what kinds of skills might be valuable in a leader.  

Nonprofit Executive Director Salary and Job Outlook

The job outlook for nonprofit executive directors in the U.S. is promising, with a wide range of opportunities and salary prospects. 

According to ZipRecruiter, the national average salary for an executive director is over $93,000+ per year, though this figure can vary depending on geographic location and specific organizations. For example, organizations in urban areas and larger nonprofits often come with higher salaries. 

As executive directors gain experience, they may qualify for higher salaries — sometimes in excess of $120,000+ a year. In larger organizations with 20,000+ employees, executive directors can earn salaries in the $500K+ range, reflecting the complexity and responsibility of the position.

The demand for nonprofit executive directors is influenced by the size and scope of nonprofit operations, the need for effective leadership to drive missions and the increasing complexity of managing large, impactful nonprofits. According to the Bureau of Labor Statistics (BLS), there is a predicted 6% increase in top executive positions, about the same as the job growth rate for all occupations in the U.S.

Are You Ready to Become a Nonprofit Leader?

Successful nonprofit leaders must possess a diverse skill set that includes strategic planning, financial acumen, team management, and effective communication. If you find yourself in consideration for a leadership role, be prepared to showcase how your past roles have prepared you to guide a nonprofit toward achieving its mission. This includes demonstrating your capacity to manage complex operations, lead a diverse team, and drive organizational growth and impact.

If you are passionate about leading a nonprofit and making a significant impact, it’s essential to equip yourself with the right education and training. The online Master of Nonprofit Leadership and Management (MSNP) program at the University of San Diego is designed to provide current nonprofit professionals with the advanced skills and knowledge needed to excel in leadership roles. This program covers crucial areas such as leadership development, strategic planning, financial management, and organizational effectiveness, ensuring graduates are well-prepared to take on executive responsibilities.

Visit the program page to learn more about how you can achieve your career goals.