Succession planning for NGO leaders
How to plan for a change of NGO director: an emergency plan, a planned handover, and growing future leaders, with a simple template to start.
Short answer
Succession planning prepares your NGO for a change of leader, whether planned or sudden. Start with an emergency plan that says who acts if the director is absent. Then plan for a future departure, with a timeline and a handover. Over time, develop other staff and board members as leaders. The board owns this work, because it is a way to manage risk.
Key points
- Succession planning is risk management, and the board is responsible for it.
- Write an emergency plan first: who acts, who decides, who is told.
- Plan a planned departure early, with a timeline and a handover.
- Cross-train staff and share donor relationships so they do not sit with one person.
- Document key processes, passwords and contacts so a successor can find them.
Why does succession planning matter?
Many NGOs depend on one founder or director who holds donor relationships, passwords, bank signatory rights and the knowledge of how things work. When that person leaves, falls ill or is suddenly unavailable, the organisation can stop.
The US National Council of Nonprofits describes succession planning as a risk management strategy for sustainability, and says it is the board's responsibility to see that the right leader is in place. It also reports that, in BoardSource's 2021 survey, only 29 percent of nonprofits had a written succession plan. That figure comes from US nonprofits, but the gap is likely to be familiar to many organisations.
What are the three kinds of succession planning?
A succession-planning toolkit from the Federal Reserve Bank of Kansas City separates three approaches:
| Type | When it applies | Main question |
|---|---|---|
| Emergency succession | The leader leaves suddenly, or is absent for an extended period | Who acts, and with what authority? |
| Departure-defined succession | A planned retirement or departure | How do we hand over well? |
| Strategic leader development | Ongoing | Who are our future leaders, and how do we grow them? |
The toolkit describes "extended" as longer than three months.
How do you write an emergency succession plan?
Do this first. It takes a few hours and can save the organisation. The Kansas City Fed toolkit notes that completing the plan before an emergency reduces the emotional pressure and encourages open discussion.
- List key responsibilities. Write down what the director does: signing, approving payments, donor contact, staff supervision, security decisions.
- Name who covers each one. One person may act as director, while a finance lead covers banking. In a small NGO, an acting leader may be a board member.
- Define authority. State what the acting leader can and cannot decide, such as spending limits and hiring.
- Decide who supports them. Name a board contact, often the chair, with regular check-ins.
- Plan communications. Write who tells staff, donors and partners, and when. A sample plan from a US council of nonprofits sets staff messages within 24 hours and key stakeholders within 24 to 48 hours. Use timings that fit your situation.
- Store key information. Keep a secure file with contacts, bank details, donor agreements, passwords and registration documents, with at least two trusted people knowing where it is.
- Review yearly. Update names and contacts.
How do you plan a leader's departure?
The National Council of Nonprofits offers ten tips. The most useful for a small NGO:
- Agree as a board and staff that you will manage the transition on purpose.
- Identify the challenges ahead and the leadership qualities they need.
- Decide whether an interim leader is the right path.
- Draft a timeline for planned successions.
- Cross-train current staff to reduce disruption.
- Support new people with coaching, mentoring and clear goals.
- Plan what you will say to stakeholders before, during and after.
- Onboard new leaders deliberately, including new board chairs.
Give the departing leader time for a proper handover, with written notes and introductions to donors and partners. See also onboarding new staff in the first 90 days.
How do you grow future leaders?
Strategic leader development means that other people are ready. It does not need a big budget:
- Give staff real responsibilities, such as leading a proposal or a partner meeting.
- Rotate tasks so that more than one person can do each key job.
- Introduce senior staff and board members to donors and partners.
- Offer mentoring and training, and discuss career plans in appraisals.
- Invite deputies to board meetings sometimes.
This also supports retention, because staff who see a future stay longer.
What should the board do?
- Put succession on the board agenda at least once a year.
- Approve the emergency plan and review it yearly.
- Discuss the director's development and workload, and the board's own succession, including the chair.
- Connect succession to board governance duties and to your risk register. Our guide on organisational risk management shows how.
What is different in Myanmar?
Some leaders work under security risks or travel limits, or may need to leave the country at short notice. Staff turnover is high in many settings. This makes emergency planning more important. Keep key documents in a secure cloud folder accessible to at least two people. Avoid putting sensitive personal details in widely shared files. Make sure more than one person can sign or approve payments under your bank rules.
How EMPO can help
EMPO is a reliable, Yangon-based training and consultancy provider and one of Myanmar's leading names in practical NGO training, with 1,200+ people trained and 15 partner organisations. We support boards and leadership teams with organisational development, including governance, policies and leadership transitions, in English and Burmese, online or in person across Myanmar. See our services or contact us.
Sources
- Succession Planning for Nonprofits / Managing Leadership Transitions — National Council of Nonprofits (USA)
- Nonprofit Executive Toolkit — Federal Reserve Bank of Kansas City
- Emergency ED Succession Plan Template — TREC, 2020
Questions people ask
Our NGO is small. Do we need a succession plan?
Yes. Small NGOs are more at risk when one leader leaves, because relationships and knowledge sit with one person. A one-page emergency plan is a good start.
Should the successor come from inside?
Not always. An internal successor knows the organisation, but an open search may bring skills the organisation needs. The board should decide based on the challenges ahead.
Who writes the plan?
The director, with input from board and senior staff, drafts it. The board reviews and approves it.