The charity leader of the future
In this special article for Charity Management Month, Stephen Cahill shares his thoughts on what the ‘charity leader of the future’ might look like.
As we step out of Charity Management Month, we asked Stephen Cahill, Cranfield Trust Regional Manager for Scotland and Volunteer Lead, to share his thoughts on what the ‘charity leader of the future’ might look like.
This isn’t just an exercise in speculation; what I’m about to share is shaped by what I see every day. The challenges facing the sector over the next five to ten years will be significant. And they won’t just be financial. Charity leaders will need to draw on a deep well of skills, confidence, and capability to ensure their organisations are ready for the future. If the pandemic was the trial run, then the next decade may well prove to be a marathon for the sector.
Charity managers will need a different, evolving set of skills in the years ahead. What follows offers some pointers on where I believe these skills and capabilities will need to develop. Climbing the ‘capability curve’ might feel daunting, but it’s also a ‘confidence-building curve’ for the leaders who commit to it. The key themes that emerge are: mastering change management, building adaptability, harnessing technology in meaningful ways, and managing volunteers strategically.
Managing complexity and uncertainty: Using new thinking to create more adaptable strategies
A charity leader I spoke to a few months ago remarked that the ‘ask’ just keeps getting bigger. As ongoing and emerging pressures - like the cost of living crisis, political shifts, and economic uncertainty - impact beneficiaries, new patterns of need are emerging. Addressing these needs will likely demand more cross-sector collaboration. While point solutions have their place, I’ve long believed that much more could be achieved through stronger collaboration across the sector- especially when it comes to human welfare.
The funding versus demand challenge is, for most charities, in constant motion. Deciding where to focus effort or allocate resources to achieve the best outcomes for beneficiaries is no small task. I recently shared this analogy with a charity leader:
“It’s like playing table tennis on the deck of a pitching ship.”
Not only are you trying to play - and ideally win - the game, but you also have to stay upright while doing it. Neither charities nor their beneficiaries are ‘widgets,’ which is why simple cause-and-effect analysis only gets you halfway to a good solution. What’s really needed is a way to capture the complexity surrounding both charities and those they serve - and then to seek out solutions that actually work and deliver meaningful outcomes.
One tool that seems to have fallen out of favour - somewhat surprisingly, in my view - is systems thinking. It can help cut through issues like bias, ingrained values, and conditioned thinking. More importantly, it reveals the relationships between different elements of a challenge and potential solutions. It’s not especially difficult to learn or apply, but like all worthwhile approaches, it requires time and effort to use well. The payoff is a much deeper understanding of the challenges at hand - and of where your charity can make a meaningful, lasting difference.
Even then, you may only be able to offer a less-than-optimal solution for your beneficiaries. But that’s okay, if it’s the best you can do and you’ve understood why it’s the best you can do. In a world of complex needs, half a loaf may indeed be better than none at all.
Collaboration and coalition building
Anyone who’s heard me speak will know I often return to this theme of collaboration. It offers real, practical benefits - not just for charities, but for the beneficiaries they serve. Is it a panacea for all the world’s problems? No. But it’s certainly an area that deserves more attention, and future charity leaders must stay alive to the opportunities that greater collaboration can bring.
Need seldom travels alone. As the ‘ask’ grows, coalitions of charities could play a key role in matching supply to that need. Issues like loneliness, social isolation, hunger, and energy poverty are complex and interlinked - challenges that may be better addressed through a coalition-based or collaborative approach.
Tomorrow’s charity leaders will need to engage more, look outward, and see their organisations as part of a wider solution - not the only solution. For some charities, this may require humility and a reassessment of the supposed uniqueness of mission. It will also demand the skills to build meaningful relationships across the sector, and to explore how collective action can improve outcomes for shared beneficiaries. Simply being willing to work in coalition isn’t enough - but it’s an essential first step.
From a charity’s perspective, working in coalition can offer significant benefits - particularly when it comes to managing resources more effectively. Take, for example, ten charities operating within 20 miles of each other, all doing similar work. That’s ten sets of bills, ten organisations each unable to afford skilled professionals like a dedicated funding manager, and ten separate efforts that, if coordinated, could significantly amplify their collective impact. Yet without collaboration, these opportunities remain untapped. Coalitions and collaboration can be temporary or for an agreed finite time and this is perfectly okay. The ability to build coalitions and work collaboratively will be a defining skill for the charity leader of tomorrow.
The rational optimist
It might sound like an odd title, but let me explain. Most charities exist to fix something in the world. Their missions are rooted in causes that are deeply emotional - hunger, need in its many forms, and inequity. These are powerful motivators that give rise to charitable action. However, the reality for most charities is that without funding and rational decision-making, no amount of emotion will put dinner on the table or clothes on a child’s back sustainably.
The concept of the "rational optimist" goes beyond basic financial stewardship. Most charity leaders I meet are competent in managing funds and applying stewardship. Where gaps begin to appear, though, is in the strategic management of those funds (we will cover this in more depth later) - things like projections, budgeting and understanding the implications of reserves or restricted funding and their link to strategic goals.
I once saw a clear example of this: a charity pursued a project grant that, on paper, ticked all the boxes. It addressed an emotional need and promised increased impact. But in practice, it was almost disastrous. The project’s overheads were unsustainable, it drained valuable management time, and when the funding ended, the staff hired specifically for it were unemployed and left - taking their expertise and momentum with them. The optimism was there, but it needed to be tempered with rational analysis. Could the same goals have been achieved through a different service model? Could collaboration have made the initiative more sustainable? It was a salutary lesson in balancing vision with viability.
Every charity has a financial clock. I didn’t coin the phrase, and I regret that I can’t remember who did - but it’s stuck with me. It’s a powerful analogy. The charity leader of the future will need to watch that clock more closely than ever. If the money stopped tomorrow, how long could you keep going? What would increase your longevity and sustain your strategic goals? And if cuts had to be made, how could they be implemented in a way that minimised harm to your beneficiaries?
These are tough questions, but they’re exactly the kind of decisions that charity leaders will increasingly face. And it’s not just about finances. Capacity, capability, and competence must also be considered to get an honest picture of what’s possible. Optimism is what drives us forward - but it’s rationality that helps us direct that optimism toward sustainable, meaningful outcomes.
Being the ‘patient engineer’ - working ON the charity, not just IN It
Charity leaders must learn to work on their organisations, not just in them. This means stepping back to assess how to adapt, reconfigure, and marshal resources to best respond to changing environments and emerging challenges. It’s about building resilience and avoiding rigidity - being open to evolving beyond a single business model, especially when logic and circumstances call for change.
You don’t have to look far for examples. Take the high street: while many lament its decline, consumer habits have shifted, and demand/supply has followed. The organisations that have thrived are those that adapted - such as by embracing online retail. The charity sector is no different. The ability to connect the dots, manage change effectively, and harness technology will be essential skills for leaders who want to future-proof their organisations. The business model that works so well today may become an albatross around your neck tomorrow and knowing when and how to pivot your business model is something to pay close attention to,
Where can you start building the skills to become a ‘patient engineer’? A great first step is to take a thorny operational problem and open it up to peer review or peer-to-peer learning. This approach not only provides valuable reference points and fresh perspectives, but also creates a supportive and appreciative learning environment. You might already have a sense of the right solution - but hearing other viewpoints can either reinforce your thinking or, as is often the case, reveal alternative approaches you hadn’t considered.
Reflexivity is a skill that can be developed, and setting aside dedicated ‘thinking time’ becomes increasingly important when you’re working on your charity, rather than just in it. I like to call my thinking time “informed speculation” - a space where I let my mind roam freely around a challenge. The key takeaway here is that carving out time to think is not a luxury, but an essential practice. It's a vital part of the discipline required to step back, reflect, and focus on the bigger picture of your charity’s development.
Managing volunteers more strategically – squaring the circle of volunteer and charity needs
Since the pandemic, there’s been a noticeable shift in volunteer numbers, with multiple factors contributing to the decline. Time constraints, shifting demographics, family responsibilities, and financial pressures have all played a part. Those with the specific skills and experience that charities often need most are, unfortunately, often the hardest to reach - and even harder to retain.
Addressing this challenge is much like trimming the sails on a yacht - it’s a constant balancing act to stay on course. Volunteers are individuals, not a homogeneous group. One size doesn’t fit all. Today’s volunteers are increasingly selective about the opportunities they engage with, and their motivations can vary greatly - and change over time. Their involvement must meet a personal or emotional need, whether it's purpose, connection, or personal development.
At the same time, every charity has organisational needs - things that must be done. Finding the sweet spot between what your organisation requires and what volunteers are seeking is essential. If your charity relies on volunteers, I’d encourage you to approach recruitment with the same care and intentionality as you would for paid staff. There has to be a win-win; volunteers give their time and skills freely, so it’s vital to be clear about what they receive in return - especially when money isn’t part of the equation.
The reality is this: if you’re struggling to attract or retain volunteers - or the right volunteers - you have two main options. You can fit the individual to the role by providing training and development, or you can adapt the role to the individual’s capabilities. That may mean simplifying tasks or accepting that some specialist work may need to be outsourced or funded. Either way, you gain clarity - and that clarity allows you to plan effectively.
In a world where volunteers may become scarcer or more discerning, asking the right questions becomes even more important:
- What is our mission, and where do volunteers fit into it?
- What kinds of volunteers do we need, and where might we find them?
- What do volunteers want from us, and how can we make our offer appealing to the people we want to attract?
Volunteer management has evolved. It’s no longer just about stewardship - it’s about strategy. And the charity leader of the future will need to be tuned into this shift, approaching volunteer engagement as a core part of the organisation’s overall strategic planning.
Marketing (these days, everyone is in sales): Mastering messages, telling a story, and attracting support.
As a charity leader, it likely resonates when I say that attracting funding has become increasingly difficult. Competition is fierce, and the need to diversify income streams remains a constant challenge - especially for charities working in areas that are harder to ‘market’. Diversifying funding isn’t just an option anymore; it’s an essential part of a charity’s strategy.
In a recent conversation, a charity leader shared their frustration over the stark funding imbalance in the sector: roughly 5% of UK charities attract around 90% of the available funding. It’s a sobering statistic. The remaining 95% - deeply embedded in the fabric of our civil society - are left to do extraordinary work on a relative shoestring. They deliver real, tangible impact, yet lack the visibility or resources to attract the level of support they deserve.
Many of these smaller organisations simply don’t have the financial or professional capacity to promote their cause effectively to broader audiences. But marketing isn’t an arcane science - it’s a skill that can be learned, developed, and applied. For the charity leader of the future, mastering marketing - or at least understanding its power - will be crucial. A laser beam focus on messaging, audience engagement, and storytelling will become core leadership capabilities.
Identifying your audiences requires a degree of strategic thinking. Your message needs to either stir an emotional connection or solve a problem - or ideally, do both. You need to appeal to both the heartstrings and the purse strings. I often use this example to illustrate the point: there’s a difference between an emotionally compelling appeal aimed at the public or a corporate donor, and a more practical, problem-solving pitch aimed at a service commissioner during a tender process.
Knowing who to target - and with what type of message - is what makes your charity investable. It answers the crucial question: “Why should I invest my time, money, emotion, or skills in your organisation?” If you can clearly answer that, you're well on your way to shaping compelling, targeted messaging - and marketing your charity with impact.
Managing the numbers strategically – connecting goals, numbers, and people
Finance is an area where many charities face challenges – conceptually and practically. Yet the reality remains: cash is king. In my experience, most charities are actually quite competent when it comes to managing the day-to-day finances - what we’d call financial stewardship. However, there’s a hidden pitfall in focusing solely on the immediate finances. Years ago, I came across a phrase that, whilst humorous, captures this point perfectly:
“If you look after the pennies, all you end up with is a sack of coppers.”
What I’m getting at is this: charity finances need to be approached on two levels. First, there’s stewardship - managing current resources wisely. But just as important is a strategic view of the finances. This means looking at how to use financial insight to plan for the future, make intelligent investments and support long-term goals that ensure your charities longevity.
When I work with charities, I always look for the ‘golden thread’ - the clear link between strategic goals, the finances that support them, and the capabilities needed to deliver. I also encourage a broader view of risk. For example, while there may be a risk in doing something, there can also be an equal or greater risk in not doing it. Strategic investment is not a luxury - it’s a necessity for charities that want to grow, adapt, or even just sustain their impact.
In charity financial management of the future, seeing the bigger picture will matter more than ever. Aligning your finances with your strategic goals - and thinking two steps ahead - will be essential skills for the charity leaders of tomorrow.
Cutting through the digital hype – turning possibilities into reality
I’ve saved this slightly controversial point until the end. We are standing at the dawn of a new era - an age where the power of artificial intelligence (AI) is said to impact our lives in deep ways. It’s being described as a new industrial revolution. I’m not at all cynical about that claim, even though, at times, the details can feel a little threadbare. But for the charity leader of the future, ignoring this emergent phenomenon would be a mistake. AI might not replace an entire service a charity delivers to its beneficiaries - but I would wager it will replace or significantly enhance large parts of it.
To move forward with this, it’s helpful to take a step back. Let me illustrate. In the early 1990s - back when the internet was just beginning to take off - I spotted a book (yes, a real, paperback one!) in a now-defunct bookshop. The book was titled The Internet Directory. Within a year, the pace of change was so fast that even if you had chopped down the forests of Siberia, you still wouldn’t have had enough paper to print an updated version. The book was as obsolete as it was misguidedly ambitious when it was printed.
The same is happening with AI. Like the invention of the internet or the steam engine, we are witnessing something with power to transform how we work and do things. But AI only becomes powerful and useful when charity leaders begin to think about, and apply its practical uses. For the charity leader of tomorrow, the challenge is not to get swept up in the hype, but to cut through it and identify practical opportunities to improve, adapt, and transform services. This could mean delivering better outcomes, increasing efficiency, or doing more with fewer resources.
A good place to start is by looking for practical applications and quick wins - especially in routine processes. Ask yourself: What do we do for our clients, and how might automation or insights enhance that work? AI can help ‘join the dots’ in ways that were previously difficult or time-consuming. And, much like the early days of the internet, there’s no shortage of developers and innovators who will be eager to collaborate with charities to build smarter, more impactful solutions.
As a charity leader, I hope this piece has encouraged you to reflect on some of the key skills that could support your development as your charity looks to the future. Without doubt, new skills will emerge - and existing ones will continue to evolve - as the sector adapts to changing needs and challenges. At Cranfield Trust, we offer a range of services and resources designed to support you on that journey.
To find out more about the range of FREE resources we offer please visit the resources page on our website. You can also visit our on-demand webinar library, where you will find a wealth of FREE webinars on a wide range of topics, including finance and AI. You can also register to be kept informed of future webinars.
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