Nonprofit executive turnover
is still a sector challenge

CompassPoint and the Meyer Foundation have released a report, “Daring to Lead 2011 – A National Study of Nonprofit Leadership,” updating previous surveys, that identifies executive turnover as an ongoing challenge for the nonprofit sector.

“Though slowed by the recession, projected rates of executive turnover remain high and many boards of directors are under-prepared to select and support new leaders,” was the first of three key findings identified through a nation-wide survey of more than 3,000 executive directors of mostly small to medium-size nonprofits, including 150 in Hawaii, according to Jeanne Bell, CEO of CompassPoint Nonprofit Services.

Ten percent of EDs surveyed said they expect to resign within one year and – 7 percent have already given notice – and 67 percent anticipate stepping down within five years. These numbers are down slightly from the last survey in 2006, when 9 percent of EDs were in the process of leaving their jobs and 75 percent anticipated resigning within five years.  Meanwhile, only 17 percent of organizations have a succession plan in place.

The study also found: “The recession has amplified the chronic financial instability of many organizations, causing heightened anxiety and increased frustration with unsustainable models.” 84 percent of EDs surveyed said the downturn had impacted their organizations negatively, with one in five reporting the impact was “significant” and 65 percent said they experienced recession-related anxiety.

“In fact, the recession has only exacerbated an endemic challenge of leadership in the nonprofit sector: developing a sustainable business model that fully finances a nonprofit’s desired impacts and allows for strategic organizational development and growth over time,” the authors said.

The third key finding: “Despite the profound challenges of the role, nonprofit executives remain energized and resolved.”  Given the economic climate, burnout levels were low with 67 percent of EDs reporting little or no burnout at all.

The full report, which was presented in Honolulu by Jeanne Bell at the Conference of Nonprofit Communities Communities on Nov. 29, can be found on the Daring to Lead website. Click here to download a copy.