There are many risk management strategies to safeguard sustainability of a nonprofit organization, one of which is succession planning. Succession planning is a duty of the board of directors and management of a nonprofit.
There are two different types of departures the succession plan needs to address, expected and unexpected. Having a plan in place helps to mitigate the chaos change often sparks.
- Expected – A succession plan for expected leadership departures allows for a smoother transition.
- Unexpected – A succession plan for unexpected leadership departures helps to guide management to next steps and avoid program interruptions.
Developing a succession plan
The board of directors, often times a governance committee, and the organization’s key personnel should have a part in the development of the nonprofit’s succession plan. Below is a list of suggested topics your plan should address:
- Develop a list of your key personnel, their job descriptions, and identify the tasks that are essential for the organization’s programs to run smoothly.
- Identify and cross-train a backup for key tasks. Staff should be aware of their assignments should they need to temporarily fill a role.
- Assign an interim leader, if possible, and list responsibilities and limitations.
- Develop a search committee for coordinating job postings, interviews, and consulting with an advisor as necessary to find the right candidate.
- In addition to consideration of staff departures, the plan should also address next steps if a board member resigns mid-term.
- Establish a plan, including a draft announcement, for communication to the public and to the organization.
These are just a few of the topics your succession plan could address, the more specific you are in your plan, the easier the transition will be. Unfortunately, there is no one size fits all template, the board of directors and organization management will have to work together to develop the most effective plan.
Succession planning is one way a nonprofit can help to ensure continuity of trust outside and inside the organization. Planning also helps to keep the organization’s fundraising initiatives and programs running smoothly, allowing for continuation of their mission even during a major change.
Please contact the Not-for-Profit Niche team at Gilliam Bell Moser LLP for further guidance.
