In reaction to the culture shift of turnover and gaps in leadership, many nonprofits -- large and small -- are using consultants as short- and long-term solutions. We invite you to join us for an interactive session as top thinkers in nonprofit management and philanthropy offer techniques and anecdotes for getting through these tumultuous times. Some of the topics that will be addressed include: determining if outsourcing your leadership on a short- or long-term basis is a good fit; assessing the current state of the outgoing leader's responsibilities and reallocating resources to keep moving towards the fundraising goals and mission objectives; and relationship management of your board and donors during transitions. Presenters: Stephen K. Orr, Managing Partner, Orr Associates, Inc; Emma Kieran, Vice President, Fundraising and Development, Orr Associates, Inc; and Jenny Taylor, Marketing Specialist, GuideStar USA (moderator)

1. 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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Copyright © 2013 Orr Associates, Inc. All Rights Reserved.
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2. 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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3. 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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4. 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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5. 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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6. The Facts: EDs
• Concerns:
– Succession:
NPOs with a documented
succession plan
EDs that were very confident their
board could hire the right successor
17%
33%
SOURCE:
Daring to Lead 2011, CompassPoint and the Meyer Foundation, http://daringtolead.org/
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7. The Facts: EDs
Time it takes to fill ED
positions
• Concerns:
– Hiring:
43%
36%
21%
0%
Less than 1-3 months3-6 months More than
1 month
6 months
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/
w ww.oai-usa.com
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8. The Facts: CDOs
• 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.
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9. 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.
w ww.oai-usa.com
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10. The Facts: CDOs
SOURCE: Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, Compass Point,
http://www.compasspoint.org/underdeveloped.
w ww.oai-usa.com
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11. 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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12. Your Situation, Your Options
What is your
situation?
What are your
options?
What will
happen to my
donor/board
relationships?
ED/CDO resigns,
gives his/her
two-weeks notice
Existing staff
serves in role
Hire
Outsource
(long term or
short term)
Relationships are
held by an insider
temporarily, gap
in transfer
Relationships are
held by a new
insider, gap in
transfer
Relationships are
held by an
outsider, no gap
in transfer
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13. Your Options: Existing Staff
Serves in Role
Pros
• No immediate cost
• Existing organizational
knowledge
Cons
• Loss to their job function
• Gap in fundraising,
leadership
• Ramp-up period
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14. 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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15. Your Situation, Your Options
What is your
situation?
What are your
options?
What will
happen to my
donor/board
relationships?
ED/CDO resigns,
gives his/her
two-weeks notice
Existing staff
serves in role
Hire
Outsource
(long term or
short term)
Relationships are
held by an insider
temporarily, gap
in transfer
Relationships are
held by a new
insider, gap in
transfer
Relationships are
held by an
outsider, no gap
in transfer
w ww.oai-usa.com
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16. Hire External Staff
Pros
• Fully embedded
solution
• Determine exact
skills required for
success
• Vetted by staff
leaders
Cons
• Lengthy hiring
process
• Recruiter fees
• Opportunity costs
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/
w ww.oai-usa.com
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17. 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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18. Your Situation, Your Options
What is your
situation?
What are your
options?
What will
happen to my
donor/board
relationships?
ED/CDO resigns,
gives his/her
two-weeks notice
Existing staff
serves in role
Hire
Outsource
(long term or
short term)
Relationships are
held by an insider
temporarily, gap
in transfer
Relationships are
held by a new
insider, gap in
transfer
Relationships are
held by an
outsider, no gap
in transfer
w ww.oai-usa.com
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19. Outsourcing:
Long or Short Term
Pros
Cons
• 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
CDO
• Ramp-up period
• Need to learn about the
organization and mission
• Develop rapport with
team
• Time still required for
leadership involvement
• Cost
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20. 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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21. Outsourcing: Benefits
• Chronicle of Philanthropy endorsed
• Nonprofits -- large and small -- are using consultants as shortterm 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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22. 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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23. 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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24. Case Study (Long Term
Outsourcing): Youth, I.N.C.
• 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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25. 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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26. 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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27. Agenda
• Trends in ED/CDO turnover
• Your Situation, Your Options
• Maximizing Current Staff Before They Depart
• Relationship Management During Transitions
• Being Prepared
• Conclusion
w ww.oai-usa.com
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28. 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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29. Agenda
• Trends in ED/CDO turnover
• Your Situation, Your Options
• Maximizing Current Staff Before They Depart
• Relationship Management During Transitions
• Being Prepared
• Conclusion
w ww.oai-usa.com
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30. 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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31. 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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32. 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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33. Agenda
• Trends in ED/CDO turnover
• Your Situation, Your Options
• Maximizing Current Staff Before They Depart
• Relationship Management During Transitions
• Being Prepared
• Conclusion
w ww.oai-usa.com
Copyright © 2013 Orr Associates, Inc. All Rights Reserved.
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34. Top 5 Takeaways
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
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35. Q&A
Thank you!
Steve Orr
sorr@oai-usa.com
(212) 424-1915
Emma Kieran
ekieran@oai-usa.com
(212) 424-1910 x3
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