- Funding – Scrutiny among foundations and private donors is growing. In the future, many will simply withhold funds to nonprofits that cannot demonstrate continuity in leadership. As more organizations vie for funding from non-government entities, the demand for succession plans will rise.
- Retention - After passion for the mission, professional development is the second most important reason nonprofit executives take new jobs. Organizations that do not plan for succession send a clear message to their top talent that professional development is not valued.
- Board Fatigue - Many board members are simply weary to commit more time, money and contacts to leaders who seem ready for retirement or are not open to fresh ideas. For prospective board members, the prospect of new leadership will be the necessary step to gain their support and engagement.
Generational shifts among stakeholders, emerging communication technologies and rising economic uncertainty have changed the playing field and what's required of nonprofit leaders. Nonprofits are clearly struggling in the most challenging times since the Depression and most do not feel capable of planning past the next fiscal year. That being said, not engaging in succession planning will be a huge disservice to the communities they serve. What does this mean for the nonprofit organizations that you work for or support? What could you do to help ensure their sustainability?
For more information and tips on succession planning and managing the different generations in your workplace, contact us at www.interchange-group.com.