“But Who Do You Really Need?" The Role of Objectivity in Nonprofit Leadership Transitions

When your long-time leader steps down, it’s a big moment for your nonprofit. Nonprofit leadership transitions can significantly influence the trajectory of an organization! So, it’s important to handle them with intention and care - often by engaging outside help! 

Bringing in an objective third party, like an executive recruiter, can really help you figure out not just who can do the job now, but who will lead your nonprofit into the future. Let’s look at two examples of executive transitions that were sadly handled poorly by a board. Then, let’s look at how an outside perspective could have made all the difference.

CASE 1: Duplicating the Retiring Leader Instead of Visioning for the Future

Consider the story of Acme Social Service Agency, a nonprofit dedicated to empowering young individuals through education and leadership programs. When their CEO, a charismatic leader with decades of leadership at the organization, announced her retirement, the board was quick to seek a replacement who could replicate her fundraising prowess and community presence. They promoted an internal candidate who shared a similar leadership style and had been closely mentored by the outgoing CEO.

To make a long story short, it didn’t work! 

The board was so focused on the past, that they didn’t do the work to vision or truly understand the future. Across the country, youth education and leadership programs were going hybrid and digital. Despite excellent fundraising capabilities, the new CEO struggled with leveraging digital tools and social media to engage with the youth demographic effectively. The new CEO had no exposure or knowledge to online education or outreach, and avoided any changes to core programming (which were already out-of-date because the retiring CEO’s focus was fundraising only as well). 

Over the next year under the new CEO, Acme Social Service Agency saw a dramatic decline in participant engagement and struggled to adapt to the digital-first preference of their audience. Consequently, grant and major donor funding declined and went to other providers who were keeping up with the future of leadership education. 

As funding was cut, the board kept putting pressure on the CEO to do what she does best - raise more money. Under the stress and pressure of being ill-equipped to actually lead the organization to the future, the new CEO left, leaving the board of directors with declining programming and funding and without a leader. 

CASE 2: Hiring for Prestige Over Leadership Skills

Then there's Think Forward Association, a national association known for its contributions to innovation in their sector. In seeking a new executive director, the board was captivated by the achievements and international reputation of a leading practitioner in the field. Her impressive academic credentials, famous face in the sector, and charismatic nature as an individual contributor and thought-leader were seen as assets that would elevate the organization's prestige and influence.

Unfortunately, her expertise did not translate into effective nonprofit leadership. Lacking experience in strategic management and fiscal responsibility, she implemented high-cost initiatives without proper budgetary considerations and engaged in practices that were ethically questionable and went againt the association's bylaws. 

The consequences were severe for the association—financial strain, high staff turnover, and a loss of trust within the organization. The board’s focus on prestige rather than practical leadership skills led to significant organizational turmoil. Once the bad hire was released from her position, they had to hire an expensive interim leader to “clean up” the mess that had been made by the bad hire.

Moving Forward with Objectivity

These examples highlight the pitfalls of failing to create an executive position profile that truly takes into account the current and future needs of the organization. In both cases, an objective third party such as a professional consultant or nonprofit executive recruiting firm could have provided the critical perspective needed to evaluate potential leaders not just for their ability to replicate past successes but for their capacity to navigate new challenges.

Engaging an objective third party helps to:

• Conduct a thorough needs assessment that identifies both current competencies and emerging gaps within the organization

• Provide a broader perspective on potential candidates, free from internal biases and historical preferences

• Focus on strategic fit over personal rapport, ensuring that new leaders are equipped not just to sustain but also to innovate and adapt to changing organizational landscapes

As nonprofits face leadership transitions, the focus should shift from seeking familiarity to fostering adaptability and growth for the future. By incorporating objective, third-party perspectives, organizations can better position themselves to meet the demands of an ever-evolving nonprofit sector. This strategic approach not only enhances the selection process but also makes sure the organization is ready to embrace future opportunities.