Retirement of a Nonprofit Executive Director: 11 Questions for the Board to Consider

William J. Moran, J.D., M.S.Ed.

Nonprofit Executive Directors who are “Baby Boomers” have reached retirement age.  They are now retiring in large numbers.  When a Nonprofit Executive Director announces his or her retirement, the Board will face a number of questions.  Here are some of them:

1.   Board Transition Committee?   Do we form a board committee to oversee the transition? Who will be its members? Who will chair? Will individuals from outside the board be invited to serve?

2.  Involvement of the Retiring Executive Director?   What will be the involvement of the retiring Executive Director in the transition process? Will he or she serve as a full member of the Transition Committee? In the alternative, will he or she have an advisory role to the Committee?

3.   Written Time Frame for Transition?   Will there be a written schedule of activities for the transition process?

4.   Review of the Current Strategic Plan?   The nonprofit’s strategic plan sets the direction and priorities for the organization. A review of the strategic plan will help identify the skills needed to lead the nonprofit over the next 3-5 years. Will this review take place?

5.   Readiness Audit by Retiring Executive Director?   Should the retiring Executive Director complete a readiness audit?  He or she reviews the organization over a three-year period to:

 i.  Identify the major external trends and internal issues confronting the nonprofit.

ii.  Name the top objectives or challenges that the new Executive Director will face.

6.   A Survey to Gather Input from Stakeholders?   The Board surveys key internal and external stakeholders such as staff, funders etc. to get feedback on the nonprofit and the attributes needed in the next Executive Director. Should this survey be done?

7.   Have a Communication Plan?   How and when will funders, staff and other stakeholders be notified and kept informed about the transition? Will a written Communications Plan be put into place?

8.  List Attributes Needed in New Leader?     After reviewing the strategic plan, stakeholder survey and Readiness Audit; the Board should meet and come to an agreement on the attributes needed in the next Executive Director.  Will this be done?

9.   Selection of a Search Firm?   Will an Executive Search Firm be retained to conduct the search? Will the Board (i.e., Transition Committee) work closely with the search firm as it identifies and presents candidates?

10.   Decide on Overlap of New and Retiring Executive Director?   Will the new and retiring Executive Director work together? How long? Will the departing Executive Director have a continued role for a limited time? Will this role be in the form of a paid consultancy or informal advisor?

11.   Launch and Support the New Leadership?   How will the Board set expectations for the new leadership? How will the Board support the new Executive Director?

Bill Moran, The Moran Company, specializes in nonprofit executive searches for executive directors, fundraising staff and other top nonprofit leadership.

© 2013 The Moran Company “We find great nonprofit executives”