Nonprofit executives play a critical role in the performance of the organizations they lead. Executive turnover can be tumultuous and costly for an organization in terms of money and effectiveness. By planning for the transition, organizations can minimize the risks and costs while taking advantages of the opportunities it brings. Several strategies can help nonprofits to plan and manage a successful leadership transition:

Build Board Capacity

Hiring and supervising the executive director is one of a board’s key responsibilities, yet many boards are underprepared for the transition and lack the experience needed to manage the process, according to Michael Allison in “Into the Fire: Boards and Executive Transitions."

Training and educating board members on the executive transition process can help prepare them for this important responsibility. Organizations can also seek to recruit board members who can be strong leaders during the transition. 

Focus on the Opportunities

Boards often view the executive hiring process as a simple problem of filling a vacant position, according to Don Tebbe, Amanda J. Stewart, Mary Bear Hughes, and Tom Adams in “Executive Succession: Closing the Gap Between Ideals and Practice.” By assessing the organization’s current position as well as its vision for the future, the board can…

Member based nonprofits and trade associations have been consistently losing ground in the volunteer sector and are challenged with remaining relevant and retaining members. In a field that is known for the lack of capacity building and infrastructure funding, nonprofits must be strategic in how they allocate time, treasure, and talent. According to The Chronicle of Philanthropy, “nonprofit leaders must focus more attention on innovation, measuring the impact of their efforts, and creating funding structures that encourage risk taking, according to a report  from Independent Sector." An approach that member-based organizations may consider from the private sector is Lean Startup, which provides a scientific approach to creating and managing startups in order to get a desired product into customers' hands faster. The Lean Startup method teaches you how to drive a startup: how to steer, when to turn, and when to persevere and grow a business with maximum acceleration. It is a principled approach to new product development. Applying this concept to nonprofits is another accepted means to include the nonprofit sector as a viable player in the business sector, with management capabilities that are equal or exceed the private sector in efficiency.

Taking risks in the business sector is considered research and development. It can drive up costs (pharmaceuticals…

If your nonprofit is serious about long-term sustainability, succession planning needs to be part of the overall plan for the organization. The team has poured their hearts and souls into setting goals, developing strategies, and recruiting staff and volunteers, only to have all that work potentially go to waste when a leader leaves the organization. Disruption happens and the more prepared the organization is for change, the better for long-term success.

Write it down:

BoardSource reports that only 27 percent of all organizations have a written executive succession plan. That means nearly three quarters do not. In the event the executive director leaves, there will be a transition time to not only figure out an interim leader but a process to identify a new one. Without a written plan, assumptions may be made that aren’t aligned with the overall vision and resources spent to start a process that should have already been happening. 

If there is not written succession plan, consider the following:

• How can the existing leader help with the transition process? It can take months to find the right replacement even in the best of circumstances. The current leader can provide feedback about the organization from their unique…

Evaluating volunteer programs within nonprofit organizations is a key step in continual improvement and data collection. Systematic evaluation can positively impact the organization by creating more structure, providing results for adaptability, increasing volunteer retention and improving staff-volunteer relationships. Due to a sector-wide leadership crisis and continual staff burnout, volunteer management and evaluation plays a crucial role in the livelihood of nonprofit organizations. According to the 2018 Volunteer Management Progress Report, the top five training needs within volunteer management are supporting volunteers, recruiting efforts, developing volunteer leaders, outcome metrics, and recognition and retention efforts, according to Johnson and Associates in "Volunteer Management Progress Report."

There over 62 million volunteers in America each year, according to the Bureau of Labor Statistics, according to "Volunteering in the US." “Four out of five charities use volunteers” and the majority of these organizations report that the volunteers are “beneficial to their operations in a number of ways,” according to Urban Institute . 

Evaluating a volunteer program is exactly like evaluating any other program. It is a useful tool that can define whether the program is meeting expectations, outcomes and goals. Such outcomes and goals that pertain specifically to volunteer programs could…

What we know: The new tax law’s influence on charitable giving is a topic of lively discussion, and multiple projections of negative impact have been made. Not everyone fears the effect of the change, with some believing it will put more cash into the economy and actually boost charitable giving. The nonprofit sector will not know the full implications until after year-end, but it is in the best interests of organizations to proactively consider the tax changes in their operations. The ASU Lodestar Center’s two Professionals in Residence, Pat Lewis and Anne Byrne, weigh in with their differing perspectives and advice for nonprofit organizations. For more information on the likely impact of the new tax law, click here. 

Perspective 2: 

There have been many very negative predictions on the impact of the new tax bill, with some sources projecting up to $20 billion less in charitable giving as a result of the increase to the standard deduction for taxpayers. By contrast, there are also enthusiastic advocates predicting that both businesses and individuals will have more money available and therefore charitable giving will stay the same or actually increase as a…