10 Reasons Why Impact Leaders Are More Valuable Then Ever
Social entrepreneurs, sustainability experts, social policy advocates, nonprofit CEOs, community organizers and other impact leaders have become more valuable than ever.
This week’s “Liberation Day” announcement triggered the biggest one-day Wall Street fall since 2020. The $5 trillion loss in the S&P 500 in two days has investors braced for a surge in consumer prices, rising inflation, and possible recession that will impact the bottom line of households and jeopardize thousands of small businesses that drive the American economy.
The consequences of these changes are more than economic. Job loss also results in people experiencing higher levels of depressive symptoms, poor health, loss of social support, and disruption of social and family ties, according to Jennie E Brand, author of The Far-Reaching Impact of Job Loss and Unemployment.
As the need for food banks, shelters and mental health services increases, downward markets, and fear of a recession, are predicted to cause people, companies and foundations to cut back on donations to the organizations that provide these vital services. In addition, many nonprofits are already facing delayed, complicated, or eradicated federal funding which further limits access to essential social services.
In this context, impact leaders who have the experience and resilience to help address urgent social problems, at a time when funding is being pulled back, have become even more valuable. Here are 10 reasons why these leaders are so important.
1. The Most Vulnerable Will Experience the Most Impact
Tariff-induced inflation won’t hit everyone equally. Rising prices will squeeze vulnerable populations first—fueling food insecurity, evictions, and job loss. Impact leaders will be the ones responsible for ramping up food security and other social support programs in hard-hit communities.
2. Impact Leaders Solve Problems Differently
Impact leaders approach problem-solving differently than traditional business leaders because their goal is not just profit, but positive change for people and planet. Specifically, the most effective impact leaders co-create solutions with the people most affected by the problem. They see beneficiaries as experts, not just recipients of aid or programs.
3. Impact Leaders Can Find New Solutions To Government Cuts
Impact leaders will be needed to address the gaps created as the federal government cancels funding and eliminates jobs in public institutions such as the U.S. Department of Education. In this case, new solutions will be need to support the millions of students who rely on federal financial aid, the schools that depend on federal funding, and the overall health of the U.S. education system.
4. Impact Leaders Can Counter Job Displacement
Downward markets, and a possible recession, will likely be exacerbated by the proliferation of AI and automation which could impact 300 million jobs, according to Goldman Sachs. Impact leaders are the ones designing retraining programs, digital inclusion initiatives, and future-of-work models that prioritize people—not just machines.
5. Impact Leaders Deliver Economic Value
Impact leaders can deliver measurable financial and social returns. For example, $1 in early childhood education yields up to $9 in long-term savings and productivity, according to the Center For High Impact Philanthropy. Nonprofits also employ 12.3 million people, with payrolls exceeding those of most other U.S. industries, including construction, transportation, and finance, according to the National Council of Nonprofits.
6. Impact Leaders Help Address the Outcomes Of Inequality
Lower income is directly linked to worse educational outcomes, reduced life expectancy, and higher health care costs, according to the OECD. Impact leaders work on the front lines of poverty, education access, mental health, and housing—breaking the cycle of marginalization.
7. The Public Trusts Impact Leaders
Trust in nonprofits increased by 5 points to 57% at the same time as trust in other sectors —including government, business, and media — has declined, leaving nonprofits the most trusted sector, according to the fifth annual Trust in Nonprofits and Philanthropy report. For leaders in this space, trust does not just mean selling to customers but serving a diverse array of stakeholders, often including donors, volunteers, governments, business partners, program users and beneficiaries.
8. Impact Leaders Are Also Entrepreneurs
Social entrepreneurs aren’t just running charities, increasingly they are building business models that also have a social impact and are creating the future of ethical, sustainable capitalism. For example, Hamdi Ulukaya, CEO of Chobani hires refugees and pays above-market wages. Shiza Shahidm Cofounder & Co-CEO of Our Place is blending commerce and cause by creating home cooking products that are made by women-owned manufacturing collectives.
9. Impact Leaders Create Stability
In an age of climate risk, geopolitical tension, and technological upheaval, long-term stability matters more than short-term profits. Impact leaders design systems that withstand shocks and maintain cohesion—from local food systems to inclusive hiring and trauma-informed education.
10. The Future Depends On Impact Leaders
More than ever, we need leaders who can connect dots across economics, equity, and the environment—who can lead with empathy and strategy. Impact leaders are doing that now, often without the funding, recognition, or compensation they deserve.
This week’s market crash will contribute to what are already deep vulnerabilities in our social and economic systems. In this context, impact leaders can guide their organizations with a mission-first lens; build authentic relationships with communities, employees, and partners; and drive innovation through social enterprises, and community-based design.
If we want to future-proof capitalism, strengthen democracy, and improve life for everyone, we need to fund, promote, and reward impact leaders. the way. They are worth more than ever—and they might be the only ones who can save people from the impact of the next “Liberation Day”.