NEW YORK To learn more about developing trends in nonprofit executive director turnover in the New York Metropolitan area, the Support Center for Nonprofit Management, based in Manhattan, sponsored a comprehensive survey completed by 201 current executive directors during the summer of 2004. With funding from JP Morgan Chase and the Annie E. Casey Foundations, the survey focused on:

• Assessing the potential for nonprofit executive director turnover in the next five years
• Capturing the past experience of area nonprofits with executive transitions
• Exploring the career paths of current executive directors, including plans after leaving their current position
• Collecting information about the age, size, and mission of survey respondents

Key findings suggest that nonprofit organizations based in the Greater New York City metropolitan area are likely to face an increased rate of executive transitions over the next several years compared with previous years. Data from the survey indicated that:

• Seventy percent of surveyed organizations were likely to experience an executive transition within the next five years. In contrast, only about half had experienced a transition during the previous ten years.
• Slightly more than half of current executives responding to the survey were over 50 years of age. This fact implies a growing number of transitions as these executives begin to retire or transition to part-time work.
• Thirty-two percent of respondents had been in their current positions for over ten years, and about a quarter were the founders of their organizations.
  
• Very few respondents (17%) used external assistance from consultants when the current director was hired.
• Three quarters of respondents did not have a succession plan for their organization, with only 10% having identified a potential successor among the current staff.

Managance Consulting conducted the survey with technical support from TransitionGuides. Both companies are located in Silver Spring, Maryland and are dedicated to sustaining and strengthening nonprofits through better managed leadership transitions and related organizational development.

The New York Metropolitan survey is part of the first national study of leadership transition in the nonprofit sector, and is one of approximately six geographic regions in the U.S. that will be participating. Based on survey results, there will be a better understanding how leadership transitions will impact nonprofits, and inform the development of tools and supports to address this pending generational shift. Once data has been collected from all other regions, results will form a national report on the State of Executive Leadership and Transitions in the US. This comprehensive report will be completed in December 2004.

In order to prepare for an increasing number of long-term executives leaving their positions, the Support Center for Nonprofit Management in New York is launching an Executive Transitions Management Initiative to support nonprofits and their boards of directors through this important process. With a $270,000 grant from the J.P. MorganChase Foundation, the Support Center will begin to build this service and will be providing education to hundreds of nonprofit organizations over the next three years.

Don Crocker, CEO of the Support Center, indicated that, “This project will address one of the most daunting challenges facing the sector in the near future. Many of our most valuable organizations are small or medium sized, and provide essential supports to vulnerable populations, such as seniors, the homeless, the disabled, and the poor. They include domestic violence organizations, childcare agencies, and those serving people who are unemployed. When their executive director leaves, the organization can suffer and clients are at risk of losing services and stability. Handled correctly, the transition offers an opportunity to build effectiveness, infuse new energy, and get a clear sense of future direction. ”

The Support Center for Nonprofit Management works in the Greater New York Metropolitan area and New Jersey to increase the effectiveness of nonprofit leaders and managers. The Support Center’s training workshops and consulting services enable nonprofit organizations to better serve their clients and increase the quality of life in their communities.

Contacts:
Sandra Levine, Director of Programs 212-924-6744, Ext. 309 slevine@supportcenteronline.org
John Vogelsang, Associate Director 212-924-6744, Ext. 308 jv@supportcenteronline.org