10 Top Characteristics of Good Leaders

Effective leadership is the foundation of successful organisations, particularly in the not-for-profit and community sectors.

For small community-based footy teams striving to win a premiership, for purpose-driven not-for-profit organisations advocating for the homeless, and for global corporations turning over millions of dollars in annual profit, having the right people in place to make the right decisions at the right time is crucial.

Yet getting this right can’t be taken for granted.

Research by the United States career search company Zippia found that less than half (48%) of employees viewed their company’s leadership as “high quality.” Further, just one tenth of people were judged to possess qualities that made them natural leaders.

About 20% displayed qualities of basic managerial talent that could be nurtured toward high-quality leadership.

These statistics don’t have to be predictive, however.

Anyone can become a good leader. All it takes is devoting time, making an effort, and being open to learn. Mastering the best leadership characteristics and traits of good leaders is crucial.

Defining a good leader is very difficult, but here are some of the top traits of a good leader that most people agree on.

1. Honesty
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Honesty is the cornerstone of effective leadership, fostering trust and transparency. A leader is truthful, ethical, principled, someone who knows right from wrong and does not mislead; someone who not only exhibits clear values but lives by them.

Related Resource: Hear how Communities in Control speakers and delegates responded to the question “What makes a good leader?” in the video below.

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2. Future-Oriented Thinking
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A good leader has a sense of direction, the ability to imagine where the organisation needs to be, and the ability to connect with the hops and dreams of the organisation’s stakeholders.

Related Resource: Read ICDA’s Ten Tips for Leading Organisational Growth to develop a strategic growth mindset.

3. Competence
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A leader is someone with a good track record of being able to challenge, enable and encourage while not necessarily being the expert in the core skill niche of the organisation.

A good leader is competent enough to step off the dancefloor and onto the balcony. The dancefloor is a place for gaining an understanding of the key operational tasks and day-to-day aspects of the organisation. The dancefloor can feel safe, but leaders should be on the balcony, gaining a broader perspective that is more strategic.

The best leaders take a strategic view from the balcony
The metaphorical 'balcony' is where leaders can gain a broader perspective of your organisation.

Related Resource: Learn how to delegate effectively with ICDA’s How to Step Away from Managing Everything and Step Up to Governing

4. Inspirational
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A leader is enthusiastic and passionate about their organisation’s mission and imparts this to all, giving a sense of worth to the organisation and its people.

Related Resource: ICDA’s Qualities of Good Leadership highlights how to inspire effectively.

5. Adaptable
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Adaptive leadership is a dynamic approach that community leaders can use in general, but it’s most useful when you’re seeking to address complex challenges and drive positive change. ‘Complex challenges’ are problems that lack straightforward solutions and require innovative thinking and adaptability.

Model of adaptive leadership

Adaptive leadership emphasises the ability of leaders to mobilise and empower their followers to adapt to changing circumstances and thrive in the face of uncertainty. That’s no small thing! Humans are not always fantastic with change.

Related Resource: Discover strategies for managing change with ICDA’s Ten Tips for Leading Cultural Change in an Organisation.

6. Authenticity
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Authentic leadership focuses on leaders’ genuine and self-aware expressions of their values, emotions and beliefs.

Authentic leaders are seen by others to be transparent, self-reflective, and consistent with their principles.

Authentic leadership is valuable because it promotes trust, ethical behavior and follower engagement.

Related Resource: Read ICDA’s styles of leadership guide for more information on authentic leadership.

7. Emotional intelligence
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If you understand your emotions and know how to manage them, and you can do the same for those you interact with, then you’re emotionally intelligent. If you’re not there yet, don’t worry, it’s something you can learn.

Developing and maintaining emotional intelligence is crucial for leaders as it enhances their ability to connect with and influence others effectively.

Emotional intelligence equips the leader with an understanding that the environmental scan needs to take account of the likely responses of the change on those impacted both within and outside the organisation.
Adj. Professor Susan Pascoe AM, ICDA's Leading for Purpose Whitepaper

Related Resource: Reflect on your own emotional and social intelligence with 15 questions to ask yourself after your most recent meeting.

8. Ethical
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A positive ethical leader is one who consciously applies their principles and norms of behaviour to the culture and practice of the workplace.

An ethical leader communicates their values well, is transparent about their decisions and is ultimately accountable for them.

Ethics is knowing the difference between what you have a right to do and what is right to do.
Justice Potter Stewart, US Supreme Court, 1958-1981

Related Resource: ICDA’s Leading with Purpose Whitepaper (p. 6-7) will help you understand what it takes to be an ethical leader.

9. Collective Focus
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Great leaders prioritise the community over personal ambition. They foster collaboration and inclusivity to drive meaningful outcomes.

They know how to bring together a team of diverse thinkers, and how to navigate the choppy waters that can arise as a result of different viewpoints.

It’s crucial for people to feel like they’ve had the ability to reflect on what’s been and contribute to the next strategy as it directly impacts their work and mindest.
Catherine Brooks, ICDA's Leading for Purpose Whitepaper

Related Resource: Discover how to lead a team of diverse thinkers with ICDA’s help sheet on leading in a polarised world.

10. Commitment to Continuous Improvement
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A future thinking orientation is not just important for the organisation, though. On a personal level, leaders should often reflect on their own leadership abilities, and commit time to grow and improve. This commitment ensures they remain effective and inspire growth in others.

Related Resource: ICDA’s leadership hub hosts tools, resources and training to help you on your journey of continuous improvement.

There are many more qualities of good leadership that are worth working on too, but if you start with these 10 important traits, you’ll be on the right path towards becoming the best leader you can be.

Why Leadership Matters for Not-for-Profits
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Leadership in the not-for-profit sector is about more than just guiding a team—it’s about inspiring communities, building trust, and creating sustainable change. By mastering these qualities and traits of a good leader, you can positively influence your organisation and drive lasting success.

Take the Next Step: NFP Leadership Certificate
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Ready to deepen your leadership expertise? Enrol in ICDA’s NFP Leadership Certificate. This comprehensive program equips nonprofit leaders with practical tools for governance, communication, and strategic decision-making.

Why Choose This Program?

  • Tailored for nonprofit and community leaders.
  • Learn from governance and strategy experts.
  • Apply lessons directly to your organisation for immediate impact.

Invest in your leadership journey today to become the leader your organisation and community need.

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