It’s Friday afternoon, and you’re about to clock out for the weekend. But first, you glance at your email inbox. One subject line jumps out: “Letter of Resignation.” It’s from your Executive Director. What’s your reaction? Panic? Relief? Do you even know the next steps?

Now imagine the shoe is on the other foot.

You’re the Executive Director, and the Board Chair calls to inform you they’re resigning immediately due to personal circumstances. Are you prepared to answer the inevitable questions from your team, the board, and your donors?

These scenarios are not hypothetical. They are stark realities faced by many organizations. A recent study presented to AFP and at the Canadian National Fundraising Conference revealed troubling insights into the state of succession planning in charities across Canada. The findings are clear: most organizations are woefully unprepared for both planned and unplanned leadership transitions.

The reality of leadership turnover

It’s common knowledge that nonprofit leadership roles, especially at the Executive Director level, come with high turnover. Whether from a retirement or end of contract (planned departure) or from illness, job change, or dismissal (unplanned departure), according to BNP Philanthropic Performance's 2024 study, the statistics are sobering:

• 39% of Executive Directors are likely to leave their roles within three years, rising to 68% within five years.
• 74% of Board Chairs anticipate leaving within three years, with 95% stepping down within five years.
• A staggering 83% of organizations have no plan for a planned departure, and 65% have no plan for an unplanned one.

Despite this, succession planning isn’t being discussed in 76% of nonprofits. Even fewer have formal protocols or processes in place. This gap leaves organizations vulnerable to reputational risk, operational disruptions, and a potential loss of donor confidence.

Why succession planning matters

Leadership transitions are inevitable, yet many organizations shy away from the uncomfortable conversations required to prepare for them. The reluctance to plan isn’t just risky—it’s negligent.

The same BNP study found that when a CEO or Board Chair departs:

• 94% of organizations experience a decline in revenue,
• 95% report disrupted team mobilization, and
• 66% face reputational risks, with 20% citing severe consequences.

This isn’t just about filling a vacancy. Succession planning ensures stability, continuity, and long-term success. It is about mitigating risks and preserving the trust of stakeholders who rely on the organization’s work.

Barriers to succession planning

Why do so many charities avoid this crucial process? The BNP report identifies several barriers:

• Discomfort: Conversations about leadership transitions can feel personal, sparking mistrust or suspicion.
• Lack of awareness: Many organizations don’t recognize the risks of avoiding succession planning.
• Resource constraints: Nonprofits often operate with limited staff and budgets, leaving little capacity for forward-thinking processes.

These challenges are significant but not insurmountable. Addressing them begins with understanding that succession planning is not a luxury—it’s a necessity.

The path forward: Building a succession plan

So how can your organization bridge the gap and become succession-ready? Here are some actionable steps:

1. Start the conversation: Normalize discussions around leadership transitions as part of risk management. This should be a standing agenda item at board meetings.
2. Assess organizational needs: Define the roles critical to your charity’s success and identify the competencies required for future leaders.
3. Develop internal talent: Invest in staff development to prepare potential successors. For example, only 15% of identified CEO successors are made aware of their role in succession planning. Transparency can improve readiness and retention.
4. Create contingency plans: Ensure you have protocols for unplanned departures. This includes having an interim job description, a communication plan, and a list of key operational resources.
5. Engage external expertise: If internal resources are insufficient, consider consulting firms or interim leadership solutions. BNP’s study highlights that 48% of boards rely on interim leaders, but only 12% have a pool of external candidates.

A call to action

Succession planning is not just a boardroom exercise; it’s a commitment to organizational resilience. It’s about ensuring your charity can weather leadership transitions without compromising its mission or reputation.

As nonprofit leaders, we pride ourselves on being good employers and stewards of our causes, yet the statistics tell a different story. High-impact leadership turnover is inevitable, but unpreparedness is not.

The next time you open an email on a Friday afternoon and see the words “Letter of Resignation,” wouldn’t you rather feel confident and ready, rather than overwhelmed? With a robust succession plan in place, you can.

Succession planning may feel like a daunting task, but it’s one we cannot afford to ignore. The statistics and real-world consequences are too significant. Let’s commit to doing better—not just for our organizations, but for the communities we serve.

Lee Pigeau has worked across Canada in the nonprofit sector for more than thirty years. He has leadership experience as the National Executive Director of two disability rights organizations, in hospital foundations and affordable housing charities. He has extensive capital campaign leadership experience at universities and hospitals. He is a contributing author to the book, “The Vigilant Fundraiser” and has been a speaker at various international, and Canadian conferences. Lee wrote the Ontario Standard Curriculum for fundraising e-learning at the college level and has been the lead on several research projects and industry initiatives.