Robert Thalhimer
Leadership Crisis in Nonprofit Sector? NOT!

A generation of nonprofit executives will retire over the next decade (present company included). How will we ready our replacements? How will we compensate them, when industry pays its leaders so much more? The March 6th issue of The Chronicle of Philanthropy bemoaned these questions, and the popular press has had a heyday beating this drum.

Let’s get real. How in the world did the Baby Boomers manage to replace the nonprofit leaders of the Greatest Generation? Aren’t we currently underpaid as executives? Why aren’t our nonprofits currently in a leadership crisis?

A similar wail of woe is heard in today’s Richmond Times-Dispatch. A generation of arts supporters, generally people up in age, will one day pass on. How will we replace them as donors? Does anyone stop to listen to himself? How did we manage to replace the last generation of aging arts supporters, and hasn’t overall giving to the arts continued to increase like other forms of giving?

Each generation, in my view, is guilty of an aggrandized sense of self-importance. I enjoy chances to be a contrarian, but frankly this is a softball issue. Look at the facts. Each succeeding generation in modern times has brought fresh ideas and energy to lead and support worthy charitable causes. Each generation has groomed leaders for whom the daily satisfaction of making the community a better place in which to live outweighs industry’s higher pay scale.

And, yes, there is a Darwinian aspect to leadership and donor succession. Those who do a good job of it survive, and those that do not fade away. Is survival of the fittest a crisis?

Yes, we need good leadership programs like Leadership Metro Richmond. Yes, we need foundations like Mott and universities like Virginia Commonwealth University and the University of Richmond to provide good executive training. Yes, we need to cultivate younger donors.
But, NO, this is not a crisis! Preparing new leaders and new donors to replace those of the present generation is JOB ONE. It is the most critical aspect of a leader’s work plan. It always has been, and it always will be. Whining about how hard it is to do one’s job as a leader is unbecoming of the term, “leader.”

4 Responses to “Leadership Crisis in Nonprofit Sector? NOT!”

1
Philip Davidson Says:

Great article. I would add that one of the biggest barriers to developing new leaders in non profits is the longstanding leaders. By continuing to hold onto leadership positions, they discourage younger leaders from taking real leadership responsibility. Although it is rarely the intention of the experienced leaders to deny opportunities to up and coming leaders, the overall effect nevertheless is for the younger leaders to think ‘I am not needed;’ ‘there is nothing meaningful for me to do;’ ‘there is no chance to work up through the chairs to leadership positions because they are all occupied by seasoned (and generally competent) leaders.’
If organizations want younger people to become leaders they have to give them responsibility and a realistic opportunity to advance.


2
Crystal Charity Says:

Thanks for a refreshing take on an old and repetitive topic. I believe non-profits need to have and enforce a succession plan that is initiated and monitored by their Board of Directors to ensure that proper planning, education and work opportunity is made available to groom upcoming leaders. This is not a task for the CEO as most have great difficulty conceptualizing a changing of the guard let alone an actual release of power and authority which is usually due to their long tenure. Non-profits would also be wise to monitor the CEOs reactions to inpending retirement and to make the necessary provisions, i.e. financial counseling, mental health counseling, etc. to ensure that the CEO is emotionally ready to serve as mentor to an upcoming leader aspiring for the CEOs position and that when applicable the transition can be made as proficiently as possible.


3
Jim Schuyler Says:

Thanks, Bobby, for another view on non-profit “succession planning”. It seems that we create a cottage industry and a media story to deal with whatever “crisis du jour” is identified as the next disaster for non-profits. I was pleased to share this with our thirty Executive Directors of Virginia’s anti-poverty agencies. My focus was on two sentences in your last paragraph–preparing new leaders and donors is the most critical aspect of your job as a leader. That made sense to me–thanks for reminding us.


4
Dan Weintraub Says:

Well said Bobby. In addition to the formal programs you have mentioned there are also important informal approaches to developing leaders that benefit our region. For example, you are among the seasoned non-profit leaders who has generously served as a mentor, shared best practices and otherwise offered guidance to younger leaders involved in similar roles. Wally Stettinius is an example of a volunteer in the community who has taken an interest non-profit leaders and has offered input to further development and effectiveness. Such efforts, along with the formal programs you mentioned, are reasons to be bullish about the future of non-profit leadership in our region. Another point may be made about financial resources and leadership that goes along with the need to cultivate younger donors. Increasingly charities in our region will benefit from a focus on building permanent endowments. As Gen X (and Millenial) leaders eventually replace Boomers, who themselves replace members of the Greatest Generation, then the existence of sound sources of steady annual support from robust endowments will allow non-profit leaders of tomorrow to spend more time focused on their charitable missions.


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About Robert Thalhimer

Bobby Thalhimer joined The Community Foundation staff in 1999, after having been a board member from 1981 to 1991. His responsibilities as Senior Vice President for Advancement include donor services, communications and outreach, affiliate operations and coordination of the Community Foundations of Virginia and the Richmond Donors Forum.

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