Title:
A Review of Leadership Needed in Nonprofits: Transformational Leadership

Authors:
Hwangji S. Lu, USA

Abstract:

Nonprofits have become more crucial in modern society for advancing social progress and solving social issues. Like for-profit organizations, nonprofits are experiencing profound upheaval and continue encountering even greater rates of change through their dynamic environments in the past decade. Change occurs everywhere with increasing speed and complexity.  Due to the complex, turbulent environments, managing the resources for sustained performance has become increasingly difficult in most nonprofits. Leadership is critical to maintaining organizational viability. To survive and prosper, leaders of nonprofits must be vigilant to their external environments and attentive to changes. Numerous empirical research studies have shown that transformational leadership is the most effective in rapid environmental change. Nevertheless, nonprofit leaders and managers might not possess transformational leadership to lead their organizations in the rapidly changing environment. Leadership development has a tremendous impact on the long-term performance of the organizations. Nonprofits must invest money and efforts to prepare their leaders to take on challenges effectively and smoothly navigate the world’s rapidly changing economic, social, technological, and political dynamics. 

DOI: https://doi.org/10.51505/IJEBMR.2025.9202