Sustaining Impact: Supporting Nonprofits to Thrive During Leadership Transitions
By: Kadar Lewis, Program Officer, The Ralph M. Parsons Foundation
“It's time to lift the veil and dissolve the stigma and secrecy around nonprofit leaders and organizations evolving to new chapters, and instead celebrate and support transparent processes that will sustain organizations' ongoing missions under new leadership."
-Jonathan Zeichner, former CEO, A Place Called Home
Nonprofit organizations are the lifeblood of essential social services and positive community change, and executive leadership transitions are critical periods for them – especially during times of political, social, and economic uncertainty.
With intentional support from funders, these leadership changes can be transformative, rather than destabilizing, for organizations.
As a Program Officer with The Ralph M. Parsons Foundation, working with our NSI pooled fund, alongside 20 other foundation partners, I’ve seen first-hand the importance of maintaining consistent funding and leaning in with additional supports through these pivotal times.
The Executive Transition Fund (ET Fund), launched in 2021 by the Nonprofit Sustainability Initiative (NSI), supports Los Angeles County-based nonprofits through critical executive leadership transitions. To date, it has awarded grants ranging from $75,000 to $100,000, along with essential tools, support, and peer network, to three cohorts totaling 18 nonprofits.
Our Result in Supporting Executive Transitions:
The 2025 Executive Transition Fund Report from NSI underscores the profound impact of continued funder support during leadership transitions. It shows how nonprofits participating in the NSI's ET Fund, not only received essential financial backing, but also reported both tangible and intangible benefits such as organizational growth, invaluable knowledge and peer support when their funding partners maintained and expanded their commitments.
Maisie Chin, a past participant and founder of CADRE, shared that their transition became “a catalyst for incredible organizational growth,” thanks in part to the NSI program.
Key Learnings from the NSI Executive Transition Fund Program:
Peer Support is Crucial: Nonprofits in transition benefit greatly from sharing experiences with peers, helping avoid pitfalls and informing more strategic decisions.
Financial Stability Ensures Long-Term Health: Leadership transitions are costly. In Los Angeles, the NSI research found that this averaged about $235K. Dedicated transition funding allows organizations to cover these critical added costs such as executive search, consultant fees, and infrastructure needs, while maintaining continuity.
Sustained Engagement Builds Trust: Continued support helps nonprofits engage staff, communicate with donors and stakeholders, and maintain transparency, which fosters stability and long-term trust internally and externally.
Leadership Transitions as Growth Opportunities: Nonprofits that received support during leadership transitions reported significant organizational growth, showing that leadership changes can be a catalyst for renewal and strategic growth.
Impact of Support in Los Angeles: Organizations that received continuous funding during transitions reported better outcomes, such as:
More engaged board members;
More accessible institutional knowledge;
Better implementation of new technology and financial controls.
Overall, NSI participants reported increased organizational resilience, smoother leadership transitions, and a sense of community among peers facing similar challenges.
What Can Funders do?
It’s essential for funders that care about organizational effectiveness, resilience and capacity, to recognize the profound impact of continued transition support – including non-financial support.
Establish a Transition Fund: Create a dedicated grant opportunity for supporting nonprofits during leadership transitions, which can cover executive search costs, leadership coaching, or staff development, etc.
Consult with Nonprofits on Their Transition Needs: Ask questions and be open. Engage with your grantees to better understand their unique challenges, so they can direct funding to their greatest needs such as succession planning, overlap between outgoing and incoming leaders, or key staff retention.
Provide Flexible Funding: Trust grantees. Offer unrestricted or flexible funding so they can allocate resources as needed, such as board or staff coaching or hiring an interim leader.
Provide Non-Financial Resources: Relationship building opportunities with you and your introductions to peer funders go a long way to help new leaders learn your priorities and benefit from a vote of confidence within the funding community.
Encourage Peer Learning Networks: Facilitate peer learning groups where nonprofits in transition can share organizational experiences and strategies, and thrive in an environment of mutual support and shared knowledge.
Collaborate with Experts: Partner with consulting firms or leadership development organizations to provide specialized expertise.
Extend Grant Timelines: Be willing to adjust reporting and/or grant timelines and expectations during a leadership transition, enabling nonprofits to focus on their internal changes while prioritizing long-term goals.
Final Thoughts: Keep Supporting the Mission
The NSI Initiative research is clear: funders can best enable high impact work in nonprofits undergoing leadership transition by investing in those transitions. By withholding funding, we risk undermining the very organizations we aim to support. When we provide unwavering support during transitions, we help nonprofits not just survive, but thrive.
