The Board Will Actually Approve This! ROI of Nonprofit Coaching

Apr 15

Let's face it, nonprofit leaders are responsible for squeezing every penny until it turns into a nickel. So when someone suggests investing in leadership coaching, the response is often a version of, "With what budget, exactly?" While corporate execs have been enjoying the benefits of coaching for years (along with their expense accounts), nonprofits have largely been left on the coaching sidelines.

But what if coaching isn't just a luxury reserved for Fortune 500 types? A fascinating case study from a Maryland human services nonprofit suggests that coaching might actually pay for itself and then some. Let's dive into what they discovered when they took the coaching plunge.

The Coaching Experiment: What They Did

Dr. Denice Hinden and her team implemented a pretty substantial coaching program that included:

500 hours of coaching (both individual and group sessions)
Over 50 employees from leadership to frontline staff
Three coaches
A two-year commitment
Energy Leadership™ coaching methodology and the Energy Leadership Index™ (ELI) to measure energy states from catabolic to anabolic. (You will learn more about this when you take the assessment)

The ELI assessment produces an Average Resonating Level (ARL) score—essentially a measurement of a person's typical energy state and outlook. Think of it as quantifying how someone typically approaches challenges, from pessimistic and stressed (low score) to optimistic and engaged (high score).

What Changed: Beyond the Warm Fuzzies

The study tracked several changes in participants:

Frontline staff improved their ELI Average Resonating Level (ARL) scores by nearly 7%
Management personnel showed an almost 19% increase in their ARL scores
People with higher ARL scores tended to get better performance reviews

But the really interesting part is what happened to the organization's bottom line. Because while feeling better is nice, nonprofits need results that help advance the mission.

The Money Part: Where Coaching Seemed to Help

The research team identified four areas where coaching appeared to make a financial difference:

1. People Actually Showed Up More

Coaching participants took fewer sick days (No, coaching isn't proven to improve your immune system)
More staff presence meant more actual mission work getting done

2. Staff Stuck Around and Moved Up

The organization saw a 20% reduction in turnover-related expenses
13 employees received internal promotions during the study
The organization saved on recruiting costs and retained institutional knowledge (no more "Where did we put that donor list?")

3. High Performers Kept Performing Highly

Coaching helped maintain the mojo of top performers.
These high performers delivered substantial mission value (without burning out and fleeing to the for-profit world)

4. People Actually Cared About Their Work

Participants showed higher engagement levels
Engaged staff contributed more meaningfully to organizational goals (instead of just watching the clock until 5pm)

The Bottom Line: A Surprisingly Good Return

Here's where it REALLY gets interesting. The researchers calculated a 635% return on the coaching investment. That's $6.35 in value for every dollar spent on coaching. Talk about turning pennies into nickels!

Now, let's be real for a moment. This calculation involves some assumptions and methodological choices that would make a statistician raise an eyebrow. The researchers attributed 20% of improvements to coaching (recognizing other initiatives were happening concurrently), estimated values for different performance levels, and made other judgment calls.

So while I wouldn't take that 635% to the bank, the pattern suggests coaching provided a positive return. And in the nonprofit world, any positive return on professional development is worth it.

Why This Matters
Even More in 2025

The nonprofit landscape in 2025 is... complicated. Here's why coaching might be even more valuable now:

Political Funding Rollercoaster: The Trump administration's approach to federal spending has created planning challenges that would make even the most zen nonprofit leader reach for the aspirin.
How coaching helps: Develops the ability to scenario plan and maintain sanity when funding priorities shift faster than TikTok trends.
Board and ED Relationship Dynamics: Nothing says "fun times" like navigating the complex dance between governance and management.
How coaching helps: Builds communication skills and clarifies boundaries so board meetings don't feel like walking through a minefield.
Technology Adoption Resistance: "But we've always done it this way!" (Said a strategic planning client I worked with had a typewriter in the office).
How coaching helps: Addresses the emotional side of change resistance and helps staff embrace new tools without breaking out in hives.
Collaboration Challenges: Working with government, business, and that other nonprofit that's been your "friendly competitor" for years.
How coaching helps: Develops the people skills needed to navigate different organizational cultures without losing your mind.

Should YOUR Nonprofit
Try Coaching?

If you're intrigued but not quite ready to jump into coaching, here are some sensible next steps:

Get clear about what problems you're trying to solve
Start small, perhaps with your leadership team
Measure what matters to YOUR mission
Integrate coaching with other professional development approaches

The case study suggests coaching could be a surprisingly good investment for nonprofits. While your ROI mileage may vary from the impressive 635% they reported, it's worth considering whether coaching might help your team navigate the increasingly complex nonprofit landscape.

After all, if corporate folks find value in it, maybe they're onto something. Those bottom-line-focued businesses wouldn't keep investing in coaching if it didn't positively impact their profits, right?

Want to Learn More?

Get the Full Report: Curious about the details behind the numbers? I'd be happy to share the complete two-page report with you. Just email me at angela@seraphstrategies.com with "Nonprofit Coaching ROI" in the subject line, and I'll send it right over.

Explore if Coaching Is Right for Your Organization: Wondering if coaching could benefit your specific nonprofit situation? I offer complimentary 30-minute exploratory sessions to discuss your or your organization's unique challenges and how coaching might help address them.

Angela Fontaine is an ICF-certified coach and consultant who supports mission-driven organizations to maximize their impact. She holds certifications in Energy Leadership™ coaching and has worked with organizations across the civil rights, housing, and environmental advocacy sectors to name a few. Connect on LinkedIn