Succession planning for Charitable foundations: when the founder or chief executive steps back
A foundation's relationships, history and judgement often sit in one or two people. Succession planning moves some of that knowledge into writing and into a second pair of hands before it is needed.
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Share your requirementsWhy succession planning matters in charitable foundations
The chief executive has run the foundation for fifteen years. She knows every major grantee, every donor's preferences and why a certain decision was taken in 2014. The board trusts her and has never asked who might follow. If she were ill or chose to leave, the foundation would face months of confusion and perhaps a rushed appointment from the founder's circle.
Succession planning starts by naming the roles that cannot go empty: the chief executive, the heads of programme and finance, and any person holding a key donor relationship. For each, it asks who could step in for a short time, who could grow into the role over years and what they must learn. It includes the board, since trustees also age and change. The result is a modest plan, reviewed once a year, not a long document.
How to set it up
1. Name the roles that matter most
Usually four to six. Include the person who keeps the key relationships, even if their title is modest.
2. Identify emergency cover
Who would step in for three months if the person were suddenly absent, and what they would need on day one. Prepare a short briefing note now.
3. Identify possible successors
Inside or outside, with their strengths and gaps. Agree development tasks such as presenting to the board, leading a grant round or meeting a major donor.
4. Capture knowledge in writing
The key leader writes down relationships, history of major decisions and lessons learned. Do it in pieces over a year.
5. Review yearly with the board
Trustees see the list, the cover and the progress, and agree who speaks with whom. Use competency mapping to track readiness.
Check these first
Before changing anything, find out what is true today. These take an afternoon and use your own records.
- Ask the board who would run the foundation for three months if the chief executive was away.
- Find the person who alone holds the key donor relationship.
- Check if the leader has written down any history of major decisions.
- See whether any staff member has had a chance to present to the board.
GullyHR can do this with you. Read how we approach succession planning in general, or share your requirements and we will tell you where to start.
Questions owners ask
No. A small foundation with a long-serving leader needs it more, since the loss would be larger. The plan can be short, as long as it names cover, successors and a knowledge handover.
Approach it with respect and make it about the foundation's continuity. Begin with a knowledge capture and emergency cover, and let the longer discussion about a successor follow in its time.
Not always. Compare the internal candidate with an outside search and consider fit, skills and the board's wishes. A plan gives you the choice, instead of leaving it to a crisis.