Like many startup and growth-stage life sciences and healthcare companies, nonprofit organizations are increasingly operating in an environment where “doing more with less” has become an everyday reality.
Amid funding uncertainties, rising costs, growing demand for services, a tight talent market, and workforce pressures, organizations are having to make very difficult decisions about where to invest their limited resources. Recent research from the Urban Institute found that nonprofit leaders’ concerns about financial health, programming, and workforce sustainability intensified in 2025. About half of nonprofit leaders surveyed cited their organization’s financial health as a primary concern.
The workforce pressures are particularly acute. A 2026 nonprofit staffing report found that 81% of organizations identified budget constraints as a leading challenge, while 55% cited burnout and workload, and 38% pointed to a lack of qualified candidates.
Against this backdrop, every leadership decision carries heavy weight.
Prioritizing the Roles That Matter Most
When resources are constrained, organizations may decide to freeze hiring or postpone senior-level searches. While sometimes necessary, across-the-board restrictions can also create unintended consequences.
A more strategic approach begins by evaluating which capabilities are most critical to the organization’s priorities over the next 12 to 24 months. Where are the biggest leadership gaps? Which functions are essential to financial sustainability, operational performance, fundraising, growth, or program delivery? And where could a dynamic leader generate an outsized return on the investment?
The answers will vary. A nonprofit facing funding challenges might prioritize an experienced development executive. Another organization undergoing significant change might need stronger operational or financial stewardship. Still another might benefit from a technology or data leader who can modernize systems and create efficiencies across the organization.
The goal should not necessarily be to maintain the existing organizational structure. It should be to build a new leadership structure that will power it forward.
Rethinking Roles and Responsibilities
Resource constraints can also provide opportunities to reconsider how leadership roles are designed and the types of people needed to fill them.
Rather than simply replacing a departing executive with someone carrying the same title and responsibilities, organizations can assess whether functions should be consolidated, separated, expanded, or redesigned. That evaluation should keep in mind both immediate needs and the capabilities the organization will require as its mission and strategy evolve.
In some circumstances, the best solution may not be a traditional full-time hire. Interim or fractional executives can provide senior-level expertise during periods of growth, help lead a critical initiative, or strengthen a function without necessitating an immediate long-term commitment. There can also be the flexibility to transition the role into a full-time position if and when the workload expands.
“Organizations operating with limited resources have little margin for error when making important leadership decisions,” said Leslie Loveless, CEO and Managing Partner of Slone Partners. “Because the competition for top talent remains tight, it’s imperative to understand where the organization is headed, identify the leadership capabilities that will matter most, and invest in the people who can make the greatest impact.”
Protecting the People You Already Have
Doing more with less can take its toll on the people whose workloads become untenable.
Burnout is already a significant concern across the nonprofit workforce. Urban Institute research found that among nonprofit leaders who discussed staffing concerns, the share mentioning burnout doubled from 2024 to 2025.
Strong leadership teams recognize the difference between operating efficiently and operating unsustainably. They can establish clear priorities, eliminate lower-value work, empower employees to make decisions, and ensure that responsibilities are aligned with the capacity on hand.
That same principle applies beyond the nonprofit sector. Startup and growth-stage life sciences and healthcare companies routinely face similar decisions as they balance limited capital against ambitious scientific, clinical, commercial, and operational goals.
Leadership as a Strategic Investment
As challenges mount for nonprofits across the country, every hire matters. Senior-level hiring decisions are especially consequential because the right leader can influence performance well beyond their own function.
Organizations that approach leadership planning strategically by identifying the capabilities they truly need, thoughtfully designing roles, and determining where experienced leadership can create the greatest ROI can position themselves to navigate uncertainty while continuing to advance their missions.
Doing more with less should not mean expecting fewer people to simply shoulder more of the load. It means ensuring that the right people are in the right roles, focused on the priorities that matter most, and empowered to succeed.