Nonprofit Executive Search Firms: Answers to Your Top Questions

Finding the right leader for your nonprofit is one of the most critical decisions your organization will ever make. The Moran Company is a retained search firm specializing in nonprofit recruitment nationwide. Below are answers to common questions about executive search firms in the nonprofit sector.

1. “When Should Our Nonprofit Hire an Executive Search Firm?”

Consider partnering with an executive search firm when:  

•  The Role Is Critical. For CEO, Executive Director, or other C-suite positions including senior-level fundraising roles, the stakes are too high for anything less than a comprehensive search. Poor leadership will quickly downgrade an organization.
• Internal Capacity Is Limited. Your board and staff are dedicated but may lack the time and broad networks required for a vigorous search needed to actively seek out talented candidates.
• Active Outreach Is Needed. Relying solely on posting the position and reviewing resumes limits the candidate pool to only active job seekers, neglecting the often-superior “passive” candidates who are not actively searching for a new role. These candidates can only be uncovered by active outreach (sourcing).
• You Need Nonprofit Expertise. A board often has good hiring experience. However, members may not fully understand the nuances of fundraising, board relations and program evaluation. An experienced recruiter whose career has been in the nonprofit sector will be able to “talk shop” with applicants to understand their experience on a deeper level.

Read more: Beyond the Resume and The Role of the Nonprofit Board in Hiring an Executive Director and Nonprofit Executive Search Firms – A Good Filter.

2. “What Does a Nonprofit Executive Search Firm Do?”

Below are the typical steps for a recruiter in a nonprofit Executive Director/CEO search:

• Assessment and Orientation: This step aligns the recruiter with the agency’s vision for the new hire. This often includes an on-site visit to meet staff and get a sense of the organizational culture and community, as well as a review of important materials.
• Stakeholder Survey: The recruiter collects feedback from key staff, board, and other stakeholders identified by the nonprofit to understand what attributes will be important for their next leader to have.
• Position Profile: Out of the orientation and survey comes the position profile, which reflects a unified understanding of the attributes needed for the position.
• Salary Comparables: The search firm often will present salary comparisons for the search committee’s review.
• Active Recruiting (Sourcing): The recruiter will use customized recruiting strategies, including posting, personal outreach and networking to seek out qualified candidates.
• Systematic Screening: The recruiter thoroughly vets all applicants, using preliminary interviews to narrow the pool down to the most qualified individuals.
• Semifinal Interviews: Often, four to six candidates are presented to the nonprofit’s search committee for semifinal interviews. Depending on the circumstances, these may be done by videoconference. Two to three candidates often emerge as finalists.
• Vetting Final Candidates: The recruiter does reference checks, social media and background checks.
• Final interviews: The search committee (and perhaps other board members) conducts final interviews and makes the hiring decision. The recruiter helps with these interviews and assists with negotiations.
• Post-Hire Onboarding: The search firm may provide onboarding consultation to ensure a smooth leadership transition.

Read more: Our Executive Search Process and Nonprofit Executive Search Firms vs. Standard “Headhunters” and Hiring a Nonprofit Executive Director – 5 Ways to Improve Final Interviews.

3. “How Long Does an Executive Search for Nonprofit Leadership Take?”

The time for a nonprofit executive search varies from firm to firm and can take from three to six months. This timeline can be customized based on the organization’s specific needs. The Moran Company’s process is around 14 weeks and is broken down into these phases:

• Orientation & Assessment (3 weeks): Includes organizational assessment, stakeholder survey, and finalizing the position profile.
• Outreach and Sourcing (6 weeks): Dedicated to customized recruiting, personal outreach, and initial candidate screening.
• Candidate Evaluation (4–5 weeks): Involves recruiter screenings, board committee semifinal and final interviews, references, background checks, and negotiations leading to the final hire.
• Leadership Transition Support (ongoing): Takes place after the search and provides onboarding support and executive coaching to ensure a smooth transition.

A search firm seeks to balance a comprehensive recruitment process with swift action to keep top candidates engaged.

Read more: How Long Does a Typical Nonprofit Executive Search Take? and How We Search for Nonprofit Leaders in New Communities.

4. “How Much Does a Nonprofit Executive Search Cost?”

Retained search firms typically calculate a full-service fee based on a percentage of the first year’s salary for the position being filled. This search fee often ranges from 30% to 35% of the first year’s salary. Many firms ask for retainer payments before, during, and after the search is completed. Beyond the fee, organizations should expect to cover additional expenses, which commonly range between $2,000 and $5,000. These expenses can include posting fees, background investigations for final candidates, and consultant travel costs. Most firms offer a guarantee and will repeat the search if the person leaves within a certain period. Often it is one year.

Read more: Budgeting for Nonprofit Executive Recruitment and Four Ways to Fund a Nonprofit Executive Search.

5. “How Do You Choose the Right Executive Search Firm for Your Nonprofit?”

Organizations should select a firm with a high percentage of its business devoted to the nonprofit sector, ensuring they understand the nuances of nonprofit culture, board governance and fundraising. Critical questions to ask include: who the assigned consultant will be, what their specific nonprofit background is, and how many concurrent searches they will be handling (ideally two or three). The firm should have a proactive recruitment strategy that goes beyond posting jobs to find passive candidates and offers a strong process for attracting qualified local, regional and national candidates. Ask about their fees and payment structure, their approach to diversity, and whether they offer a one-year guarantee on the placement.

Read more: Critical Questions for Choosing a Nonprofit Executive Search Firm and 7 Ways to Find Top Nonprofit Executive Search Firms and Using a National or Local Search Firm.

Are You Ready to Find the Next Great Leader for Your Nonprofit?

If your nonprofit is facing a leadership transition, you don’t have to face it alone. The Moran Company is here to provide the expertise, network, and guidance you need for a successful executive search. Read more of our “Common Questions About Nonprofit Executive Searches for Executive Directors and Fundraising Leaders” and connect with us to learn more about our services and how we can help.

by William J. Moran, J.D., M.S., Ed.
President
The Moran Company
“We Find Great Nonprofit Leaders”

About the Author: Bill Moran is known nationwide for his decades of experience as a nonprofit executive recruiter. He previously served as a fundraiser for a hospital foundation and a faith-based organization in Kansas City. Bill is also an attorney and past President of the Network of Nonprofit Search Consultants. Read more about our team.