The charitable sector has a history of leaders staying in their positions for decades, which can make leadership transitions tumultuous and challenging. The Charity Insights Canada Project‘s most recent data explores how many charities are experiencing leadership turnover and how prepared they were for the transition.
- Nearly half (49%) of organizations reported no leadership changes in the past three years, while 39% experienced at least one transition, mostly due to retirement, burnout, or better opportunities.
- After a leadership turnover, most charities re-focused the organization by strengthening board governance (38%) and by ensuring clear communication with staff and stakeholders (38%).
- Although leadership transitions can be destabilizing, 73% of respondents noted at least somewhat positive impacts, with many viewing the transitions as opportunities for organizational renewal.
Additional survey highlights include:
A significant number of charities lack succession plans
- Not at all prepared: 12%
- Not very prepared: 16%
- Somewhat prepared, with informal plans: 25%
- Well-prepared with a succession plan: 14%
Various concerns during leadership transitions
- Loss of institutional knowledge: 37%
- Board and governance challenges: 27%
- Disruptions in strategic direction or priorities: 26%
- Staff morale and retention challenges: 21%
- Funding uncertainty or donor concerns: 17%
- Other challenges (e.g., poor onboarding, hostile staff, lack of documentation): 11%
- No major challenges reported: 20%