Jim Collins is one of the most respected business thinkers of our time. His book Good to Great has shaped how companies think about leadership, strategy, and long-term success. But for nonprofit leaders like Sarah, his insights are even more relevant.

Collins himself acknowledges this in Good to Great and the Social Sectors:

“Social sector organizations [nonprofits] increasingly look to business for leadership models and talent, yet I suspect we will find more true leadership in the social sectors than the business sector.”

That statement rings true for anyone in nonprofit leadership. Running a nonprofit is harder than running a business:

• Fundraising never stops—while businesses shift to stable revenue, nonprofits must constantly secure funding.
• Multiple stakeholders must be satisfied—donors, funders, communities, and government agencies all have different expectations.
• The landscape is always shifting—needs change, policies evolve, and crises arise that require immediate response.

Despite these challenges, many nonprofits move from good to great by embracing the same principles Collins identifies in his research. Let’s break them down and apply them to nonprofit leadership.

Collins starts with a simple but powerful idea: organizations that settle for "good" never become great.

In the nonprofit world, this is complicated. Getting to “good” is already a huge achievement—balancing impact, compliance, fundraising, and operations is no small feat. But some organizations have the potential to go beyond good and create transformational change.

For nonprofit leaders, the key takeaway isn’t to dismiss “good” organizations—it’s to recognize that with the right leadership and focus, good nonprofits can become great nonprofits.

The Power of Level 5 Leadership

One of the most important findings in Good to Great is that great organizations are led by Level 5 Leaders—leaders who combine personal humility with fierce professional will.

Great nonprofit leaders:

• Put the mission first, not themselves.
• Build strong teams that outlast their tenure.
• Make hard decisions for the long-term good of the organization.

Collins describes Level 5 leaders as having a “ferocious resolve” to do whatever needs to be done to make the organization great.

This rings true in the nonprofit sector. The best nonprofit leaders are not in it for personal recognition—they are committed to their mission and their team.

“They’re incredibly ambitious, but their ambition is first and foremost for the cause, for the organization, and its purpose—not themselves.”

This is why succession planning matters. In Collins’ research, 10 out of 11 great companies had CEOs who came from inside the organization. Yet in nonprofits, leadership transitions often disrupt stability because no strong successor is in place.

Nonprofits that want to move from good to great must invest in leadership development—ensuring that when the current leader steps down, the organization continues to thrive.

Get the Right People on the Bus

Another major takeaway from Good to Great is the idea that who is on the team matters more than what the strategy is.

Collins puts it simply:

“Great organizations first get the right people on the bus, then figure out where to drive it.”

For nonprofits, this means:

• Hiring people who are truly committed to the mission.
• Putting the right people in the right roles.
• Letting go of staff who don’t align with the organization's values.

One challenge nonprofits face is the struggle to attract top talent due to lower salaries and limited resources. But the best nonprofit leaders know that the wrong person in a key role does more harm than an empty seat.

Collins offers a simple test for evaluating staff:

“If this person told me they were leaving, would I feel deeply disappointed or secretly relieved?”

If the answer is relief, it may be time for a staffing change.

Confront the Brutal Facts (But Never Lose Faith)

Great organizations face reality head-on—but never lose faith in their mission.

Nonprofits are no strangers to hard truths:

• Funding can be unpredictable.
• Programs can fail.
• The needs of the community can shift overnight.

Collins argues that the best leaders don’t sugarcoat problems—they acknowledge challenges and build solutions.

This requires a culture of transparency, where staff feel empowered to speak openly about issues and propose solutions. Toxic positivity—“just keep going and things will work out”—can be dangerous. Instead, nonprofits should create an environment where hard conversations are welcomed.