Excellence is not measured by the size of budgets or the number of programs, but by the organization’s ability to build a cohesive system that combines leadership, governance, impact, and organizational culture. In this article, we present a thoughtful editorial translation of a specialized intellectual material published by Joan Garry on her blog dedicated to nonprofit development.

A lack of funding… a multitude of opinions and decision-makers… an abundance of enthusiasm and motivation… on this site, I often write about what nonprofits are doing wrong and how to correct course. For example, the phrase “nonprofits are chaotic” is not just a slogan I use; it’s my conviction and methodology, and my main mission is to help these organizations organize that chaos into effective action.

But today, I want to shift the perspective and focus on what the best nonprofits are doing right, and I hope this discussion serves as inspiration for you and paints an ambitious vision to strive for. Perhaps your organization is already mastering some of these practices (and I hope so), but the truth is that we all always have room for improvement and development.

There are fourteen things that the best nonprofits do exceptionally well.

1. The best nonprofits are seen as “preferred workplaces”

This is my new favorite phrase: the people working in your organization are its most important assets, and attracting and retaining the right people is essential to serving beneficiaries or the community in the best possible way. By the way, high turnover is very costly. The best nonprofits excel at selecting people from the start and then ensure they don't want to leave.

They pay them as much as they can, genuinely appreciate them, are generous with overtime compensation, and treat them as complete human beings with their different dimensions. When this happens, the reputation spreads, and real talents take notice.

Do you see now why this is my favorite phrase?

2. The executive director is a visible, influential voice and an effective advocate for the organization

The best nonprofits are simply led by strong leadership: an encouraging leader and an articulate, smart voice capable of inspiring people with two essential messages: “I want to know more” and “I want to do more.”

3. Financial stability

An executive director who is busy daily tracking cash flows and worrying about payroll does not have the time or focus to build a long-term strategy. In the best nonprofits, the board treasurer is an active partner with the financial staff and is an effective communicator, so every board member understands the basics of the financial situation, regardless of their financial background or experience.

There are vital financial indicators that the best nonprofits focus on, such as accounts payable and available liquidity, and if you want a broader list, I’ve prepared a financial dashboard that you can download in an article I wrote about board governance.

4. Fundraising sources are balanced, diversified, and mature

A thriving organization does not put all its eggs (i.e., its money) in one basket and an excessively large number of organizations rely too much on events.

To have a healthy funding profile, it must be diverse; the best nonprofits raise funds from a balanced mix that includes: individuals (both large and small donations), grant-making institutions, events, digital channels, direct mail, and government entities (when appropriate). In addition, the best nonprofits have:

1. An advanced fundraising database with accurate records.

2. A board that understands its commitment to resource gathering and fulfills it as best as possible.

3. An executive director who understands the joy and philosophy of fundraising.

5. A diverse board that reflects the community it serves

The best nonprofits intentionally shape their boards, guided by a composition matrix that directs the recruitment process toward individuals with the skills, experiences, and traits the organization needs. The board also includes people who understand the sector in which the organization operates and people who have been directly impacted by its work.

6. A board that is clear about its responsibilities, takes them seriously, and executes them competently

The best nonprofits have a smart recruitment process, a comprehensive and engaging orientation program for board members. Once joined, ongoing education about the roles of the board makes a real difference, and these organizations have effective committees with clear tasks and specific annual goals.

7. Programs are centered around the mission

A large number of organizations “follow the money” only to pursue a funding opportunity for a specific program, even if it’s not in the organization’s priorities, and this type of program distracts from what is essential.

The best nonprofits use their mission as a guiding star, and if the connection between the program and the mission is not clear, they have the courage and discipline to say no.

8. Program evaluations to measure impact

It is not enough to rely on individual stories or anecdotes about impact; the best nonprofits have clear mechanisms for measuring success, which is a vital component of strategic planning, and funders want to know this too.

9. A clear, strong, and compelling external presence

It’s surprising how challenging this is for nonprofit leaders. But everything, from a well-crafted elevator pitch, to a smart website, to effective media presence makes the difference between good and great.

10. A smart and integrated strategy for engaging and cultivating stakeholders

Yes, this includes a conscious social media strategy, but it goes far beyond that. We’re talking about an overarching organizational strategy, across all departments, designed to invite people to participate: as donors, volunteers, potential board members, or employees.

11. Regular performance evaluations for staff and the board

I know… you thought this applied only to staff, didn’t you? But the board too? Yes, quite seriously.

The best nonprofits have a strong governance committee that manages a simplified self-evaluation process for board members, paving the way for an open discussion about what works well and what each member needs to be more effective. This mechanism also serves as a means to address underperformance when necessary.

12. A clear leadership pathway and depth in the second tier

In boards, this is why recruitment committees must look for leadership traits in addition to skills, as committees allow for practical tests of potential leaders. At the staff level, executives in the best nonprofits are keen on hiring people who can someday succeed them and then invest in their development.

If the organization has a large team, leaders adopt the same approach with their teams, and talent that has grown within the organization possesses institutional knowledge and cumulative experience that is invaluable.

13. A well-thought-out long-term strategy developed collaboratively by the board and staff

Strategies in the best nonprofits outline a clear and inspiring vision, and we’re not talking about a five-year plan full of detailed indicators and stacked tasks or even a five-year plan at all. Who knows what will happen in five years?

We are talking about a clear destination around which the board and staff can rally intellectually and emotionally, for which resources can be gathered, with major steps identified to reach it, coupled with flexibility to seize opportunities. And here is the most telling indicator of a nonprofit organization's health where I leave the most important for last.

14. An exceptional partnership between the board chair and the executive director

The best nonprofits are not necessarily the largest, and this axis alone deserves an entire article, and I have indeed written articles about it that I recommend you read.

And my current question for you is, did you find this list motivating or discouraging?

But before I leave you with either feeling, let me clarify an important point:

These fourteen characteristics are not exclusive to large or wealthy organizations; there are organizations with huge budgets that completely lack them, and the size of the organization is not important. This is the truth, so do not absolve yourself from responsibility.

A nonprofit with a $400,000 budget, a strong board, and a small but effective team can achieve all of the above, and you can use volunteers for marketing, or recruit a board member to lead this effort, or listen to a podcast about strategic planning without spending a fortune.

The ability is there… and the choice is yours.

I often hear leaders say, “If only I had the resources, I could…” But these are the only resources you actually need:

Passion, a sustainable energy source, a sufficient amount of money, and the commitment to attract the right talents and place them in the right spot, a clear vision that invites smart and diverse board members to the table, ready to do what is necessary to scale impact and maximize influence.

And the most important things (aside from fair compensation) do not carry a price tag. Please, do not let this list discourage you; let it inspire you. Understand it as a journey, and this list represents what you aspire to and your mission. It is a different type of “guiding star,” and now it’s your turn:

Is this the right list? Did I overlook anything? Would you like to remove an item from it?

This is your blog too, so join the conversation with us.

In light of these fourteen characteristics, it is evident that the thriving of nonprofits is not achieved through a ready-made recipe or extraordinary capabilities but through conscious choices made daily in leadership, governance, resource management, and building internal culture.

What this article presents is not an idealized, unattainable model but rather a practical framework against which any organization can measure itself and identify its strengths and areas for improvement. Despite the differing contexts and environments, these principles remain a professional reference that helps transition from managing nonprofit work as a reactive response to building an institutional system capable of sustainability, learning, and maximizing long-term impact.

Translated with permission from joangarry