Report: 83% of nonprofit execs plan to leave jobs within next five years

A NEW STUDY FOUND that two-thirds of more than 1,200 executives surveyed in New England, or about 64 percent, plan to leave their jobs within the next five years, but the percentage in Rhode Island is closer to 83 percent. / COURTESY THIRD SECTOR NEW ENGLAND
A NEW STUDY FOUND that two-thirds of more than 1,200 executives surveyed in New England, or about 64 percent, plan to leave their jobs within the next five years, but the percentage in Rhode Island is closer to 83 percent. / COURTESY THIRD SECTOR NEW ENGLAND

BOSTON – “Leadership New England,” a study of nonprofits in the region, reports that two-thirds of more than 1,200 surveyed executives, or about 64 percent, plan to leave their jobs within the next five years, but the percentage in Rhode Island is closer to 83 percent.
The report, subtitled “Essential Shifts for a Thriving Nonprofit Sector,” by Third Sector New England, a nonprofit specializing in leadership and management support for nonprofits, was released Wednesday.
In Rhode Island, 60 percent of 57 nonprofit leaders surveyed, or 34, intend to leave within the next five years, with another 23 percent of those 57, or 13, planning to leave even sooner – in the next two years.
Thirty-eight Rhode Island board members also were surveyed about succession planning.
Like the regional survey, which found 60 percent of organizations do not have succession plans, Rhode Island data show 63 percent of leaders and 61 percent of board members have no succession plans in place when key people do leave.
A total of 1,207 people in the six New England states completed the entire survey, 877 leaders (primarily executive directors) and 330 board members.
Third Sector New England partnered with more than 40 organizations, including the Rhode Island Foundation and other foundations and other groups that distributed the survey to leaders and board members.
“Many of the leaders and board members we surveyed reported their organizations are not ready for the anticipated challenges associated with such a large exodus of seasoned leaders – as baby boomers leave organizations they’ve been with for a long period or founded and the next generation steps up,” says Hez Norton, co-author of the report for Third Sector New England. “Many organizations have no succession plans or a deep bench of leaders and managers, are financially unstable, and are challenged by struggling boards. And these challenges are only heightened during any type of leadership transition.”
The results were no surprise to the Rhode Island Foundation, which helped fund the survey, said Jill Pfitzenmayer, vice president of the foundation’s Initiative for Nonprofit Excellence, in an emailed statement.
“The findings confirmed our impression of the sector,” Pfitzenmayer said. “That’s why we have been ramping up capacity-building activities like workshops and professional development programs. We depend on our nonprofit partners to achieve our goals. We’re investing in growing the next generation of leaders in order to keep the sector strong.”
The foundation supports the study’s recommendation that board and executive staff members invest time and energy to create a plan for organizational sustainability, she added.
“We also recognize that the daily pressures of nonprofit governance and leadership can be taxing, and we encourage nonprofit leaders to engage in open and honest dialogue with their board members to find new solutions to ongoing challenges,” she said.
Across New England, nearly half of respondents report their organizations have less than six months of cash reserves on hand and declare fundraising as their number one challenge.
Despite the challenges of nonprofit leadership, leaders reported being happy in their jobs and that their work has increased their sense of purpose and accomplishment. The report illustrates the resiliency and optimism of nonprofit leaders in the region, Norton said.
With so many leaders leaving, Jonathan Spack, Third Sector’s executive director, said “it’s time to make critical investments to ready nonprofits for new leadership, to help them meet their missions and to be prepared for whatever the future brings.”

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