Action Guide for Funders:
Partnering with Grantees Through Executive Leadership Transitions
We offer guidance for funders who want to use trust-based principles to partner with grantees undergoing an executive leadership transition.
To Navigate: Click on the bulleted items in each transition stage to explore the suggested funder practices (financial & non-financial) and curated resources.
Before a Transition
Normalize Succession Planning
During a Transition
Support the Leadership Shift
After a Transition
Empower New Leadership
Normalize succession planning
as part of healthy organizational management
Before a Transition
SUGGESTED FUNDER PRACTICES
➔ Initiate and cultivate conversations about succession planning as part of your regular grantee check-ins.
➔ Approach grantee conversations with curiosity, empathy, and encouragement.
➔ Listen to executive directors to better understand what challenges they may be facing beyond the official parameters of the grants and stated program priorities . Sustain communication and relationships with other leaders in the organization to enhance collaboration and model commitment to the whole organization.
➔ Include language in your foundation’s external communications (website, social media, etc.) about the importance of supporting leadership transition planning.
➔ Invest in leadership development across the organization, especially the second-tier leaders and board.
Nurture Open Communications about Transitions
Supporting Resource
Expand Support for Organizational Resilience
SUGGESTED FUNDER PRACTICE
➔ Incorporate succession planning into your capacity-building offerings as a proactive strategy to help organizations prepare for transitions, strengthen internal structures, mitigate risks, and ensure continuity.
Supporting the Leadership Shift
During a Transition
Signal Commitment to the Full Transition Process
SUGGESTED FUNDER PRACTICES
➔ Continue existing grant support, without interruptions or reductions.
➔ Follow the lead of grantee partners if they decide to explore and implement new models of leadership including co-leadership.
➔ If desired by the grantee, amplify their work in your public communications to showcase their impact–even during the transition process.
➔ Provide funding for additional transition-related expenses identified by grantees, such as costs for executive searches, key staff retention, and hiring interim leaders. This support is crucial for ensuring a smooth transition and maintaining organizational stability.
➔ Provide multi-year, general operating support grants so leaders have flexibility to determine where the funds are most needed during this period.
Supporting Resources
Offer Assistance during the Transition Process
SUGGESTED FUNDER PRACTICES
➔ Connect grantees to transition-related resources.
➔ Offer to support grantees in sharing their transition plans with other funders.
➔ Support an inclusive transition process by providing funding for engaging the board, staff, and community stakeholders. This collaborative approach ensures that all voices are heard and contributes to a more effective and equitable transition.
➔ Advocate for other funders to support the transition.
Supporting Resource
Connect to Networks
SUGGESTED FUNDER PRACTICES
➔ Link grantees to consultants who support transition planning.
➔ Facilitate connections between grantees and peer funders to enhance their organizational profile, while prioritizing the grantees' expressed funding and partnership needs. This tailored approach fosters future support and strengthens collaboration within the funding community.
➔ Invite grantees undergoing transitions to funder-facing events such as conferences and seminars to elevate their profile and demonstrate their continued impact.
Supporting Resources
Honor the Outgoing Leader
SUGGESTED FUNDER PRACTICES
➔ Offer support for outgoing leaders to plan their exit, including resources, coach recommendations, and connections to other outgoing executive directors for peer counseling.
➔ Honor outgoing leaders and thank them for their achievements publicly.
➔ Fund (and rally other funders to support) the outgoing leader’s exit plan. This could include sabbaticals, documentation of their experiences, or time to explore other ambitions.
Supporting Resource
Empowering New Leadership
After a Transition
Celebrate Incoming Leader
SUGGESTED FUNDER PRACTICES
➔ Welcome new executive(s), both privately and publicly. Use your communication channels to highlight the new leader(s).
➔ Make clear your trust in the new leader and commitment to continue funding the organization. Model this behavior for other funders and discourage the “wait and see” approach.
Supporting Resource
Communicate Patience & Commitment to the New Leader
SUGGESTED FUNDER PRACTICES
➔ Limit requests. Give new leaders time and space to onboard and learn before expecting them to articulate their new vision.
➔ Eliminate the guesswork. Explain your funding priorities, budget plans, and how you make decisions.
➔ Ask leader what they need. Leaders often appreciate knowing they have access to help when needed.
Supporting Resource
Coordinate with Peer Funders
SUGGESTED FUNDER PRACTICES
➔ Work with other funders to lessen burden on grantees undertaking leadership transitions.
➔ Organize peer funders to brainstorm collective support opportunities for grantees before, during, and after transitions.
Equip New Leadership for Success
SUGGESTED FUNDER PRACTICES
➔ Connect new leaders to peer networks, especially critical for leaders from underrepresented communities. These networks can play a key role in reducing isolation and burnout.
➔ Provide funding for executive coaching and mentoring support as requested.
➔ Build support into grants for activities that enhance leaders’ wellbeing, including individual and staff retreats.
➔ Ask new leadership how they define success, rather than imposing preset metrics of success.
Supporting Resources
This blog post, featured on the Trust-Based Philanthropy Project website, urges funders to reexamine their approach to nonprofit leadership transitions. It advocates for viewing these transitions as opportunities for renewal rather than risks, emphasizing the importance of trust and proactive support for incoming leaders.