How to Properly Handle Nonprofit Leadership Transitions
Leadership transitions are among the most pivotal, and also most vulnerable moments in a nonprofit’s life cycle. Whether it’s the departure of a CEO, executive director, board chair, or other key staff position, these changes create uncertainty for staff, donors, and partners.
Whether the actual circumstances around leadership transition are positive, negative, or neutral, handling the transition properly will help to maintain continuity and confidence from all levels. Handled poorly, it can have effects like stalled fundraising efforts and operations disruptions. If a leadership transition does happen, you want to avoid eroding trust that sometimes took years to build.
Below are some best practices that help organizations navigate leadership transitions based on what we have seen.
Acknowledge the Departure with Professionalism and Gratitude
The first communication about a leader’s departure sets the tone for everything that follows. It should be concise, gracious, and forward-looking. The goal is to acknowledge the individual’s service and contributions without oversharing or over-speculating about the circumstances. A well-crafted announcement thanks the outgoing leader, affirms the organization’s commitment to continuity, and assures stakeholders that operations and mission delivery will remain steady.
Your goal here is always clarity that provides information rather than creates a slew of uncomfortable questions. Not that you are withholding any information, but you should try to frame the message to be as productive as possible.
Stabilize Internal Operations Before Making Major Changes
After the announcement, the next priority is internal stability. Leadership transitions often create anxiety inside the organization, and the absence of clear guidance can quickly lead to effects like stalled fundraising or conflicting priorities about operations. The board and remaining leadership should reaffirm roles where appropriate, as well as expectations for staff during this interim period.
Rather than trying to introduce new strategic initiatives or entire organization-level overhauls, the focus should be on maintaining consistent operations and ensuring uninterrupted service delivery. Early conversations with key donors and partners help reinforce confidence and prevent fundraising disruptions.
Use an Interim Leader to Maintain Momentum
For many nonprofits, appointing an interim executive director or CEO is the best strategy during a transition. An interim leader can help provide both tangible and intangible stability. This helps to maintain internal structure and keep essential functions (like fundraising) moving forward. This person can vary depending on the circumstances, but you want to make sure whoever takes on operational responsibilities doesn’t lead to burnout or blurred governance boundaries. A strong interim leader creates a bridge between the departing executive and the incoming one, giving the organization the steady hand it needs during a moment of uncertainty.
Keep Fundraising and Stewardship Active
A leadership transition is the absolute last time that you want to turn off the revenue engine for your organization. It’s one of the first things major donors notice, and their response often depends on the organization’s tone and approach. Fundraising should not pause during a transition. Stewardship meetings should continue, led by the board chair, interim executive, or development lead if possible. Donors should hear directly (when appropriate) that while leadership is changing, the mission remains strong and their investment continues to make an impact. In many cases, donors view a well-managed transition as a sign of healthy governance and long-term stability.
Support the Incoming Leader with a Deliberate Onboarding Plan
Once a new leader is selected, the transition isn’t over. In fact, it enters what is arguably its most important phase. A thoughtful onboarding process ensures the new executive is set up for success. This includes a structured plan, introductions to major donors and key partners, clarity on expectations, and regular check-ins with the board chair and relevant staff. New leaders often struggle not because of lack of talent, but because they enter organizations without clear direction or insufficient context. Unrealistic expectations are one of the highest reasons for staff turnover, especially at the leadership level.
Leadership transitions in a high-turnover industry are somewhat inevitable, but the subsequent instability doesn’t have to be. By getting out ahead of handling the transition narrative with maintaining the right relationships during the limbo phase, you can work through it without having your mission dip as new leadership moves to make it’s mark on your mission.
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