In many nonprofit organizations, succession planning is one of the most overlooked leadership responsibilities. Boards, CEOs and staff are often deeply focused on mission delivery, fundraising and daily operations. The question of “what happens next” rarely rises to the top of the agenda until it suddenly becomes urgent.

Too often, succession planning begins only after a leader announces their retirement, leaves unexpectedly or when an organization begins to struggle during a leadership transition. By then, the organization is already behind.

In my work conducting feasibility studies for capital campaigns, I frequently encounter organizations led by founders who have served as CEOs for many years. These founders are often visionary leaders. They’ve built the organization from the ground up, inspired donors and created a mission-driven culture that both staff and supporters deeply admire.

But founders can also create a leadership challenge if the organization is not prepared for the future.

In several studies I have conducted, donors and board members have privately expressed concern about leadership continuity. They admire the founder’s passion and leadership, but they worry about what will happen when that person eventually steps away. Some founders have become so accustomed to leading that they struggle to listen to others on the team. Several key donors have suggested creating a strong number two position, someone who can share leadership responsibility and eventually ensure continuity.

These situations are not uncommon in the nonprofit sector. Many organizations assume succession planning is about identifying the next CEO. In reality, succession planning is much broader. It is about building leadership capacity across the entire organization so that the mission can thrive no matter who is in the top seat.

Succession planning is also not about replacing a person. Itis about strengthening the non-profit. I often use sports analogies when thinking about leadership and organizations. No successful team enters a season with only one star player and no backup plan. Championship teams build deep benches. They develop younger players. They prepare assistant coaches who can step in when needed.

Great teams don’t wait for an injury or crisis before preparing the next generation of leaders.

Nonprofits should operate the same way.

Succession planning is not limited to CEOs. Some involve long-time development professionals who have cultivated donor relationships for decades. These individuals are beloved by donors, trusted by leadership and often central to the organization’s fundraising success. But when they retire or move on, donors sometimes drift away as well. Without a transition plan, relationships that took years to build can disappear in months.

The business world has long recognized the importance of leadership pipelines, yet even their succession planning remains a challenge.

• According to Gartner (2023), 82% of companies admit they do not have high-potential leaders ready to step into key roles.
• Research from McKinsey (2023) shows that organizations with structured leadership development programs are 2.4 times more likely to outperform their competitors.
• And a PwC (2023) survey found that 70% of executives say they feel unprepared for leadership succession.

If large corporations struggle with succession planning, itis easy to understand why nonprofit organizations often operating with lean staff and limited time can overlook it.

Donors want to invest in organizations that will endure. Board members want to know that leadership transitions will not derail the mission. Staff want confidence that the organization they serve will remain stable and strong. Succession planning provides that confidence.

A thoughtful succession process begins by identifying the positions most critical to the organization’s success. It evaluates the strengths and development opportunities of current leaders and helps prepare emerging leaders through mentoring, leadership training and increased responsibility. It also encourages organizations to create structures such as deputy roles, leadership teams or cross-training that reduce reliance on a single individual.

At Armstrong McGuire, we help organizations begin this process. Through assessments, leadership conversations and strategic planning, we work with boards and executive teams to identify key positions, evaluate leadership capacity and prepare for future opportunities and transitions.

Succession planning should never be viewed as a signal that someone is leaving. Instead, it is a sign that an organization is thinking ahead.

Great organizations like great teams prepare long before the moment arrives.

As legendary football coach Bear Bryant once said: “It’s not the will to win that matters — everyone has that. It’s the will to prepare to win that matters.”

The same is true for nonprofit leadership. The organizations that prepare for the future are the ones that will continue serving their communities for generations to come.

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Becky Bumgardner is a Senior Advisor with Armstrong McGuire who specializes in donor stewardship, capital campaigns, feasibility studies, board management, and mentoring. Learn more about Becky and check out her other musings in her bio.