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Turn Around a Toxic or Mediocre Nonprofit

Stepping into a new Executive Director or CEO role at a struggling nonprofit can be disorienting. On paper, the organization looks functional. In practice, morale is low, trust is thin, and everyone seems exhausted by problems no one talks about directly. If that’s what you’ve inherited, you’re not alone, and you’re not doomed.

Nonprofit turnarounds don’t happen through grand vision statements or culture workshops alone. They happen through steady leadership, clear expectations, and early signals that things really are going to change. Here’s how new nonprofit leaders can start turning a toxic or mediocre organization around without blowing it up in the process.

Start by Listening (But Set a Time Limit)

Your first instinct may be to get in and start fixing everything immediately. Resist that. Spend your first 60–90 days listening:

  • Meet one-on-one with staff across roles and departments
  • Talk with board members, funders, and key partners
  • Review engagement surveys, complaints, and exit interviews

You’re not collecting grievances. You’re looking for patterns:

  • Where trust broke down
  • Which behaviors people feel powerless to address
  • What “everyone knows” but no one names

That said, listening can’t become a permanent phase. Staff have often been heard before, with no action following. Make it clear that listening is the first step, not the final one.

Name What’s Not Working, Calmly and Honestly

One of the fastest ways to build trust as a new ED or CEO is to say out loud what people already feel. This doesn’t require drama. It can sound like:

  • “Some of our processes are unclear, and it’s creating frustration.”
  • “We’ve normalized working around problems instead of fixing them.”
  • “There are behaviors here that don’t align with our values.”

When leaders acknowledge reality without blaming individuals, it lowers defensiveness and raises credibility. People stop wondering if you “get it.”

Fix Broken Systems Before Replacing People

Please make this a priority. In many nonprofits, staff burnout and conflict are blamed on individuals when the real issue is poor infrastructure. Before making staffing changes, look at:

  • Who actually has decision-making authority
  • Whether roles and priorities are clearly defined
  • Processes that rely on overwork or heroics to succeed

Improving operations with clear workflows, realistic workloads, documented expectations often resolves issues that once felt personal. That said, systems don’t excuse harmful behavior.

Address Toxicity Early and Directly

Nothing kills morale faster than watching leadership avoid obvious problems. Toxicity isn’t always loud. It takes on a variety of forms:

  • Chronic negativity
  • Passive resistance to change
  • High performers who undermine others
  • Managers who are polite upward and harmful downward

You don’t need to fix everything at once, but you do need to make expectations unmistakably clear. And you need to follow through. When staff see that bad behavior is addressed consistently, trust starts to rebuild.

Build Trust Through Consistency, Not Big Gestures

You don’t need retreats or perks to improve nonprofit culture (though they can help). What people are really watching for is consistency. Trust grows when:

  • Decisions are explained, even when unpopular
  • Feedback doesn’t lead to retaliation
  • Mistakes are handled fairly
  • Leaders do what they say they’ll do

Consistency is key. You don’t have to be perfect. You do have to be predictable. In organizations recovering from dysfunction, consistency is leadership.

Reset the Board–Staff Dynamic

Many cultural and operational issues persist because boards and staff are misaligned. A new ED or CEO should:

  • Clarify governance vs. management roles
  • Increase transparency about internal challenges
  • Create shared expectations around accountability

When the board understands and supports what’s really happening inside the organization, staff feel safer and less exposed.

Accept That Not Everyone Will Stay

This is the hardest part of nonprofit turnaround work. Even positive change creates discomfort. Some people are deeply invested in the old way of operating. Others have learned to survive dysfunction in ways that don’t translate to a healthier organization. If you lead with clarity and fairness, some departures are inevitable and often necessary. Culture doesn’t improve when leaders try to keep everyone comfortable. It improves when leaders stop protecting harmful norms.

Turning Around a Toxic or Mediocre Nonprofit

Turning around a nonprofit organization isn’t about charisma or quick wins. It’s about steady, values-driven leadership that improves both culture and operations.

You don’t need to fix everything in your first year.
You do need to show that:

  • Toxic behavior won’t be ignored
  • Clarity is coming
  • Trust will be rebuilt through action

That’s how nonprofits move from surviving to functioning and eventually, thriving.

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