guidestar webinar (12/11/13) - filling the gap when you have a vacant leadership position

Filling the Gap When You Have a Vacant Leadership Position

December 11, 2013 Stephen K. Orr, Managing Partner Emma G. Kieran, Vice President, Fundraising and Development

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Introductions

Steve Orr Managing Partner and Co-Founder, Orr Associates, Inc. (OAI) Founder and Executive Director, Youth, I.N.C.

Emma Kieran Vice President, Fundraising and Development, Orr Associates, Inc. (OAI)

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Agenda

• Trends in ED/CDO turnover • Your Situation, Your Options • Maximizing Current Staff Before They Depart • Relationship Management During Transitions • Being Prepared • Conclusion

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Agenda

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The Facts: EDs

• Concerns: – Turnover is imminent:

• 1 in 6 EDs are 60 years old+ • 33% of EDs reported being somewhat or very

burned out (rates are even higher for those facing high recession anxiety (52%)

SOURCES: Nonprofit Compensation & Benefits Survey, The Nonprofit Resource Center, www.cfsarasota.org/portals/0/nrc/2008nonprofitcompensationreport.pdf Daring to Lead 2011, CompassPoint and the Meyer Foundation, http://daringtolead.org

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The Facts: EDs

• Concerns: – Succession:

SOURCE: Daring to Lead 2011, CompassPoint and the Meyer Foundation, http://daringtolead.org/

EDs that were very confident their board could hire the right successor

NPOs with a documented succession plan

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The Facts: EDs

• Concerns: – Hiring:

SOURCES: Nonprofit Compensation & Benefits Survey, The Nonprofit Resource Center,

www.cfsarasota.org/portals/0/nrc/2008nonprofitcompensationreport.pdf Daring to Lead 2011, CompassPoint and the Meyer Foundation, http://daringtolead.org/

Less than1 month

1-3 months3-6 months More than6 months

Time it takes to fill ED positions

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• 51% of CDOs anticipate leaving the organization within 2 years.

• 19% of CDOs at these organizations anticipate leaving the field entirely within 2 years.

• 50% of EDs were unsatisfied with the quality of candidates in their last CDO search • 25% of EDs fired their last CDO • Only 36% of EDs are very satisfied with the performance of their CDO • Boards are sufficiently engaged in asking for gifts in only 22% of these organizations • EDs “l

• Ov • e asking” in only 44% of organizations SOURCE: Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, Compass Point,

http://www.compasspoint.org/underdeveloped.

The Facts: CDOs

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The Facts: CDOs

• For organizations with budgets of $1 to $5 million the average vacancy rate to fill a Chief Development Officer position is 10 months.

• 51% of the CDOs at these organizations anticipate leaving the organization within 2 years.

• 19% of CDOs at these organizations anticipate leaving the field entirely within 2 years.

• 50% of EDs were unsatisfied with the quality of candidates in their last CDO search • 25% of EDs fired their last CDO • Only 36% of EDs are very satisfied with the performance of their CDO • Boards are sufficiently engaged in asking for gifts in only 22% of these organizations • EDs “lov

• e asking” in only 44% of organizations SOURCE: Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, Compass Point,

http://www.compasspoint.org/underdeveloped.

The Facts: CDOs

SOURCE: Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, Compass Point, http://www.compasspoint.org/underdeveloped.

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Agenda

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Your Situation, Your Options

ED/CDO resigns, gives his/her

two-weeks notice

Existing staff serves in role

Relationships are held by an insider temporarily, gap

in transfer

Relationships are held by a new insider, gap in

transfer

Outsource (long term or short term)

Relationships are held by an

outsider, no gap in transfer

What is your situation? What are your options? What will happen to my donor/board relationships?

Your Options: Existing Staff Serves in Role

• No immediate cost • Existing organizational

knowledge

• Loss to their job function • Gap in fundraising,

leadership • Ramp-up period

Existing Staff: First Steps

• Maintain donor relationships • Work towards existing goals • Create a strategic plan of action for fundraising, including:

– Clear reporting structure – Designated task owners – Regular meetings to ensure deadlines are met – Focus on fundraising tasks with highest ROI

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two-weeks notice

in transfer

transfer

Hire External Staff

SOURCES: Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, Compass Point, http://www.compasspoint.org/underdeveloped. Daring to Lead 2011, CompassPoint and the Meyer Foundation, http://daringtolead.org/

• Fully embedded solution

• Determine exact skills required for success

• Vetted by staff leaders

• Lengthy hiring process

• Recruiter fees • Opportunity costs

Hiring External Staff: First Steps

• Appoint transition team and search committee – Develop strong communication plan – Redesign comprehensive job description – Set up processes for decision making – Always check references

• Create plan for closure • Confirm plan for moving forward towards goals • Develop robust onboarding plans

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two-weeks notice

in transfer

transfer

Outsourcing: Long or Short Term

• Keep momentum • Maintain focus • Accomplish fundraising

objectives • Keep donors connected • Bring in new fundraising

techniques and expertise • Single person or team

approach • Create stability for new

• Ramp-up period • Need to learn about the

organization and mission • Develop rapport with

team • Time still required for

leadership involvement • Cost

Outsourcing: Is it Right for You?

• Will it take more than a few months to fill the position? • Will completing a strategic review, restructuring, or project

before hiring new staff make sense? • Do you need assistance with the hiring process?

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Outsourcing: Benefits

• Chronicle of Philanthropy endorsed • Nonprofits -- large and small -- are using consultants as short-

term interim fundraising leadership solutions • Efforts keep fundraising on track • Allows nonprofit to address longer term leadership and

strategy issues during staffing transitions

SOURCE “Temporary Fundraisers Can Ease the Strain of Rampant Turnover,“ The Chronicle of Philanthropy, May 2013.

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Case Study (Short Term Outsourcing): American Red Cross – Northern New Jersey Region

• Challenge: – Significant changes in strategic direction – Superstorm Sandy shifted fundraising

and staffing priorities

• Actions:

– Strategies for individual, foundation, corporate fundraising – Proper gift levels for each prospect and cultivation/solicitation plans – Recommendations for maximizing staff efficiencies; improving internal

operations; and expanding fundraising capacity – On-site support three days/week

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Case Study (Short Term Outsourcing): American Red Cross – Northern New Jersey Region

• Results – Organized and focused the regional team – Opened lines of communication with National Headquarters – Improved donor relationship activities – A long-term stewardship plan for the scores of new donors who

contributed to the disaster recovery

“Emma (Kieran) came in, ran the department, and kept it steady until they found me. Rather than me starting over, Emma was the glue that helped the department going.”

- New CDO

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• Actions: – For more than 20 years, Steve Orr has played a large role in the initial

development of the organization – Brought in OAI to manage the back-office financial, administrative, and

human resources functions – Brought in OAI to co-manage the front-office fundraising, event/gala

management, strategic planning, and board management functions

• Results

– Youth, I.N.C. provides more than $45 million of support to nearly 600,000 children and youth through partnerships with more than 100 youth programs

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Case Study (Long Term Outsourcing): Youth, I.N.C.

• Results – Youth, I.N.C. provides more than $45 million of support to nearly 600,000

children and youth through partnerships with more than 100 youth programs

“OAI has helped Youth I.N.C. to run soundly and efficiently, better enabling us to achieve our mission and vision. As a result of OAI's outstanding nonprofit management services that have greatly benefited our organization.”

- Board of Directors, Youth, I.N.C.

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Outsourcing: First Steps

• Assess the fundraising team to set them up for fundraising success – Team's strengths – Fundraising plan – Opportunities – Challenges

• Develop a focused plan • Develop relationships with the board and staff

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Agenda

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Maximizing Current Staff Before They Depart

• Assess the current state of the organization with outgoing ED/CDO

• Set up a transition plan • Meet with staff collectively • Develop a 6-month action plan • Transition donor relationships

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Agenda

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Relationship Management During Transitions

• Be honest • Be transparent • Share transition plans with leadership • Reassure donors

– Importance to organization – Value as contributors

• Appoint donor relationship leaders (permanent or interim) • Introduce donors to new leadership

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Agenda

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Being Prepared

• Create succession plan • Develop transition plan • Implement annual performance review • Encourage ongoing board involvement • Utilize annual staff retreat • Groom a successor

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Agenda

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Top 5 Takeaways

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1. You have options – consider them all

2. Don’t be discouraged – take the time to find the right solution

3. Be prepared, even when you don’t think you need to be

4. Maximize your current staff

5. Donor relationship management is key

Thank you!

Steve Orr sorr@oai-usa.com

(212) 424-1915

Emma Kieran ekieran@oai-usa.com

(212) 424-1910 x3

guidestar webinar (12/11/13) - filling the gap when you have a vacant leadership position

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