Approximately 70% of nonprofit executive directors in Connecticut, Massachusetts and Rhode Island who were surveyed in 2002 by the New England Executive Transitions Partnership (NEET Partnership) said they plan to leave their positions within the next five years. This challenge to the health of nonprofits and the communities that they serve is not just limited to the New England region. Nonprofits in other areas of the country are experiencing similar challenges, according to studies in Maryland by the Casey Foundation and Transition Guides and one conducted by Compass Point in San Francisco.
With 2007 on the horizon, the majority of these nonprofits have not created a succession plan, although some have identified one or more people on their staff with the potential to become the executive director. The NEET Partnership, which consists of community and private foundation funders, is providing support for an Executive Transitions Program, run by Third Sector New England. The ETP is training consultants to work with nonprofits in transition in the New England region and is recruiting and training interim executive directors. The executive directors who responded to the 2002 survey were asked to identify the three best uses of funding to assist with leadership change. “Support to new executive leader/coaching” was mentioned by 72.2%. Slightly more than half of respondents said that a trained pool of transition consultants to assist the Board was another important use of funders’ support.
Across the country, funders are increasingly concerned about building and maintaining the capacity of nonprofits and are making investments in:
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