Three Issues in Nonprofit Board Succession Planning
Successful nonprofit boards look to and plan for the future while also taking care of the immediate needs of their organization. They understand that they are either laying the groundwork for continued success or leaving the nonprofit at risk for future problems. One often overlooked area that can cause significant problems for an organization is nonprofit board succession planning.
It’s hard to think about who might replace oneself in the future, but no one can stay in one place forever. Let’s take a look at three big issues in nonprofit board succession planning and how to avoid them.
Boards that don’t turn over enough
The issue with boards that don’t turn over enough is that, eventually, they will turn over. When you have a phenomenal board chair or other member who gives their all and does so much for the organization, the board can start to rely too much on that one individual. If that person (or the entire board for that matter) remains in their position for many years, it creates a void in leadership when they leave.
The departure of a long-time leader from the board leads to a chaotic time and opens the organization up to potential failure because so much institutional memory exists with that one person. While it can be hard to consider succession planning while you have a successful leader, it is the best way to ensure long-term growth and continuation of the organization’s mission.
Boards need to be continually preparing the next generation of leadership, which means bringing new people on to the board regularly. To do that, you also must set guidelines around how long someone can serve on the board. If there’s a founding member of the board who still wants to be involved, consider creating an emeritus position for that person. That allows for input and guidance while also giving new board members the opportunity to step into leadership positions.
Boards that turn over too much or all at once
While some boards face the issue of not turning over enough, other boards experience too much turnover. There can be many reasons for multiple board members resigning their positions in a short period of time. It could be that many long-serving board members hit retirement age and step back at the same time, or it could simply be that multiple board members encountered work or life challenges that required stepping back from certain commitments. Excessive turnover can also point to issues of how the board is operating as a team.
When board turnover is too high, the organization can encounter situations where board members lack knowledge, understanding, or context for important board decisions. It’s also challenging to do the work of the board if you’re constantly onboarding new members and bringing them up to speed. Too much turnover can result in inconsistent communication, slow decision making, and not making limited progress on the organization’s mission.
Ideally, no more than one third of the board will turn over annually. Reducing the amount of turnover by identifying and resolving the reasons for it will ensure you always have some more experienced board members to help provide context and guide the organization.
“Reducing the amount of turnover by identifying and resolving the reasons for it will ensure you always have some more experienced board members to help provide context and guide the organization.”
Board members who are also donors
Another scenario we see in nonprofit board succession planning spills over into an issue of fundraising and diversifying sources of funds. When a board member is a large donor to the organization, it is easy to rely on that member for both their leadership expertise and their financial resources. If this donor dies, there is confusion on both the leadership level and the financial level. Will the organization be viable without those funds? If they are, will they have the leadership necessary to navigate the changes?
When considering succession planning in this situation, the organization must consider its finances as well and plan for ways to replace those funds. Donors at that level require a long-term relationship, and that means the organization must be thinking decades ahead to cultivate future donors.
When nonprofit organizations have fabulous board members, they tend to relax and assume things will always be great, but that’s a fallacy. The only constant is change, and the only thing to do about it is to plan for that change.
If you are ready to begin succession planning for your board but are not quite sure where to start, Nonprofit Solutions can help. We offer succession planning training to guide your organization through the necessary steps with customized support for your organization’s specific needs.
