Succession Planning Tips for Nonprofits

If one of your top leaders quits tomorrow, will your nonprofit be prepared to handle the fallout? For many organizations, the answer is no because they don’t have a formal succession plan in place.

One study by Forvis Mazars (2024) found almost 56% of nonprofits surveyed don’t have a leadership succession plan to meet future needs. Others such as BoardSource’s Leading with Intent Report (2021) found only 29% of nonprofits surveyed had developed a written succession plan.

Why is succession planning so important? Because it’s essential to ensure the sustainability of an organization.

Leadership change happens. Sometimes, it’s a planned retirement and other times, it’s a surprise – job change, illness, scandal. Either way, nonprofits that prioritize succession planning are better prepared for smooth leadership transitions. By focusing on leadership development, they create a talent pipeline, protecting the organization from loss of knowledge, skills, funding partners and other upheaval that can occur when a leader moves on.

If your organization operates without a formal succession plan, it’s time to get serious. Here are a few tips to help you kick-start the process.

Guidance for Effective Succession Planning

1. Set Up an Executive Committee

Effective succession planning happens when nonprofits make leadership development integral to their organization’s culture. In these instances, the governing board and top leaders are aligned around a vision. They set goals, define processes and hold people accountable.

How do you get there? First, form an executive committee comprised of your board chair and select board members. This committee works closely with your CEO or executive director (ED) to identify the capabilities needed to meet the organization’s goals and mission, and assign roles and responsibilities to all board members. It also creates a job description for the CEO/ED. In turn, the CEO/ED develops job descriptions for other staff leadership positions. The committee then maps out formal leadership succession plans – for both planned and emergency departures.

Ultimately, the executive committee is responsible for recruiting, hiring and setting a compensation package for the organization’s CEO/ED. A nominating or search committee takes care of vetting and recommending candidates for the board of directors.

2. Identify & Develop Internal Candidates

With formal job descriptions in place, the executive committee should first look inward, identifying current staff members who show potential and providing them with training and development opportunities, so they’re prepared to move up when the time comes. For board appointments, the nominating committee may look to a regular volunteer who has needed skills and a passion for the mission. Employees who feel valued and see opportunities for growth and advancement are more likely to stick around, which ultimately benefits your organization.

3. Develop a Recruitment Plan

Internal candidates may not always match up with leadership openings, so it’s important to set up a formal recruitment plan that incorporates market-competitive compensation packages. Your board members and organizational leadership should constantly work their networks to identify and connect with potential external candidates, particularly younger professionals, who have relevant experience and possess the qualities and skill sets you need to achieve your goals. By curating a talent pipeline, you stand a better chance of shortening the recruiting process and achieving a smoother leadership transition.

4. Formalize Onboarding for New Leaders

Speaking of smooth transitions, your executive committee needs to formalize an orientation or onboarding process to help a new leader gain a clear understanding of responsibilities, organizational operations and culture. In turn, the CEO/ED should also develop onboarding processes for staff leadership positions. Formal onboarding goes a long way towards helping new hires become effective, impactful leaders. And it helps organizations create benchmarks to use as the basis for future evaluations.

5. Monitor Your Process for Continuous Improvement

The most effective succession plans are a constant work in progress. Your executive committee should revisit your plan annually to assess what’s working, what’s not working and what has changed in the last year that may necessitate a shift in priorities. The more you can adapt your plan to changing dynamics, the better positioned your organization will be to develop strong leadership, make smooth transitions and achieve sustainable success.