Nonprofit Roadmap to Succession Planning

Succession Planning: A Cornerstone of Nonprofit Sustainability

Succession planning is a critical aspect of nonprofit governance that ensures continuity and stability in leadership. By proactively identifying and developing potential successors, nonprofits can mitigate the risks associated with unexpected leadership changes and ensure a smooth transition of power.

Succession Planning: A Cornerstone of Nonprofit Sustainability

Understanding Succession Planning

Succession planning involves identifying critical roles within the organization, assessing leadership needs, developing a leadership pipeline, creating a contingency plan, and regularly reviewing and updating the plan. The goal is to ensure that the organization has qualified individuals ready to assume leadership positions when needed.

Identifying Critical Roles

The first step in succession planning is to identify the critical roles within the organization that are essential for its continued success. This typically includes the executive director, key staff positions, and board leadership roles. By understanding the importance of these roles, nonprofits can prioritize succession planning efforts and ensure that they have qualified individuals in place to fill them.

Assessing Leadership Needs and Expectations

Once critical roles have been identified, nonprofits must assess the skills, experience, and qualifications required for each position. This involves considering the organization’s strategic goals, culture, and the specific challenges and opportunities that leaders will face.

Developing a Leadership Pipeline

A leadership pipeline is a pool of potential successors who are being groomed for leadership roles. Nonprofits can develop a leadership pipeline by providing opportunities for professional development, training, and mentorship. This can include sending employees to conferences, workshops, and training programs, assigning them to leadership roles within the organization, and pairing them with experienced mentors.

“A well-executed succession plan is like a safety net, protecting your nonprofit from unexpected leadership changes.”

Creating a Contingency Plan

A contingency plan outlines the steps to be taken in the event of an unexpected leadership transition, such as the sudden departure or illness of a key leader. This plan should include procedures for appointing an interim leader, conducting a search for a permanent replacement, and ensuring continuity of operations during the transition period.

Regular Review and Update

Succession planning is an ongoing process that must be regularly reviewed and updated to reflect changes in the organization, leadership team, and external factors. Nonprofits should conduct annual reviews of their succession plans and make adjustments as needed.

Additional Considerations

  • Diversity and Inclusion: Ensure that your succession planning process promotes diversity and inclusion in leadership.
  • External Recruitment: Be prepared to recruit external candidates if suitable internal successors are not available.
  • Onboarding and Transition: Develop a comprehensive onboarding and transition plan to ensure a smooth transition for new leaders.
  • Communication: Keep stakeholders informed about the succession planning process and any changes to the plans.

By following these guidelines, nonprofits can develop effective succession plans that ensure continuity of leadership, reduce risks, and promote organizational stability.

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Questions?

Twana is the leader of Brady Ware’s nonprofit services, showcasing her 25+ years of specialized service in accounting, audit, and financial reporting matters. She also serves as Brady Ware’s Accounting and Assurance Services Quality Control Director, playing a pivotal role in upholding the firm’s commitment to excellence.


Twana L. Cheek, CGMA, CPA

tcheek@bradyware.com


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