This chapter defines the concept of leadership and describes the most common leadership theories. Most scholars agree that leadership is a key component of organizational effectiveness. The very range of definitions of leadership and the absence of consensual agreement between the definitions make the concept of leadership an issue in itself. The chapter examines leadership from various perspectives with an emphasis on the influence of particular leadership styles on the financial sustainability of a nonprofit organization. It integrates theory-based and practice-based approaches, and thus provides tools to better understand and influence the leader-follower dynamic in the nonprofit setting. Early leadership theories include: Great man theory, traits theories, behavioral theories, contingency theories, and attribution and charismatic theories. The chapter explains the relationship between leadership and community relations and discusses the role of leadership in strategic planning. It also explains the relationship between leadership and financial sustainability of nonprofit organizations.

This chapter defines the terms community relations, outreach, and partnership in relationship to nonprofit organizations. Community relations combine an organization policy and process used to develop and implement community outreach and awareness about programs and activities in order to promote the organizational vision and mission in a community-oriented manner. As a policy, community-relations programs and activities are intentional. The chapter also defines the terms advocacy and public relations. Public relations involve the communication of intentional messages to the public in order to influence the opinion or perception of an organization by the public at large. Public relations are a key communication practice for organizations, including nonprofit organizations. The chapter describes the different facets of community relations and discusses community outreach, partnership, advocacy, and public relations as facets of community relations. It explains the relationship between community relations and financial sustainability.