Trust-Based Transitions: Supporting Grantee Partners Through a Leadership Transition

By: Chantias Ford, Director of Programs and Strategic Learning, Trust-based Philanthropy Project

There is currently a lot of dialogue around what it means to engage in trust-based philanthropy. Trust-based funders align with this holistic approach to supporting grantee partners and have done so with an in-depth examination of their current cultures, structures, leadership, and practices.  By centering grantee partners, trust-based funders are engaging in various ways to better partner with grantees for stronger relationships and greater impact. This approach has various benefits, and numerous opportunities for greater engagement than conventional philanthropy. 

One area funders should consider in trust-based implementation is around the nonprofit leader transition. There are distinct ways trust-based funders can show up before the transition, during the process, and after the new leader is in place. 

Before the Transition

Before any potential transition is on the horizon, funders can begin to pave the way for resilient and adaptive organizations with the resources, networks, and support at their disposal. The resounding call for multi-year general operating support demonstrates that it is an essential building block for strong organizational infrastructure. Additionally, make space for conversations about what they will need through the transition, and invest time in building relationships with other people at the organization. Funders tend to only prioritize relationships with the ED, but this is a time when other staff could use some support. Building a transparent and responsive relationship with nonprofit leadership and staff will help funders better understand organizational sustainability needs and opportunities to support initiatives such as succession planning. 

We know that the pace of nonprofit leadership transitions is accelerating, and there has been much written about the phenomenon. Three recent reports (Living With Pocket Change:  What it Means to Do More With Less; The Push and Pull: Declining Interest in Nonprofit Leadership;  and Brilliant Transformations: Toward Full Flourishing in BIPOC Leadership Transitions) are making the case that the current and traditional role of a singular nonprofit executive “doing it for the cause” is losing favor as a desirable career. Nonprofit leaders–especially those from marginalized backgrounds– are consistently burning out, and often at the hands of the burdensome demands of conventional philanthropy.  

To address this, more funders are encouraging and facilitating more human-centric organizational operations, such as improved salary and benefit structures, shared leadership structures, and wellness and belonging efforts. This is a great example of the way funders are offering support beyond the check. Trust-based funders, such as the Durfee Foundation and Satterburg Foundation, are modeling this in their wellness and sabbatical grant programs. These funder interventions are proactively preventing premature leadership transitions due to untenable leadership roles. 

During the Process

Yet, leadership transitions are inevitable. At some point, a grantee partner will experience a changing of the guard, accompanied by all the turbulence that comes with it, particularly if the leadership transition is significant. Transition woes can be compounded by circumstances such as changing from founding leadership to continuing leadership, from white leadership to leadership by a person of color, from one longstanding leader to one with a significantly different strategic vision, or, in too many cases, from a burnt-out and checked-out leader to a new starry-eyed leader who has no idea of the problems they’re coming into. Each transition is unique, and a trust-based partnership will aid in a smooth, successful transition.   

During the announcement, search, selection, and onboarding process, there are various ways trust-based funders can support- both in deed and in resources. 

Trust-based funders can start with a transparent, explicit commitment to continuing support through the transition and beyond. Oftentimes, conventional funders will see the leadership transition as a point of organizational instability and use it as a reason to decline funding. Funders should see this as another opportunity to offer support beyond the check and lean into the relationship to understand the best ways to support, whether it’s through elevating the organization’s work, connecting them with other funders/nonprofit organizations, supporting the recruitment efforts, and/or being a trusted ear for the outgoing leader, the board of directors, and incoming leadership.

Additional resource-backed support can include additional funds for general operating support and/or for the search, interim capacity needs, professional development funds to upscale team/leader skills, board and staff retreats, and transition consultants. The Cricket Island Foundation is an example of a funder taking a multi-pronged approach to support grantees during a transition. Through its Leadership Transitions Fund, CIF provides multi-year general operating support, facilitates peer learning opportunities, and offers coaching to support the outgoing and incoming leaders during the transition journey. By establishing this fund, CIF hopes to be a stabilizing source of support during a vulnerable period in an organization’s life cycle.

Funders can also commit to providing additional financial support to provide a cushion from immediate fundraising needs for the new leader. This is where having a strong transparent relationship is helpful to best understand the needs and strategic ways funders can support. 

After the Placement

Once new leadership is in place, there is a long period of orientation and onboarding as new leaders come to understand and take in the full scope of their work. This goes beyond a simple 90-day onboarding process, and the real work starts when new potential organizational strategies, structures, or practices begin to emerge. During this critical time, funders can play a big role by building relationships with new leadership, and serving as a champion and advocate for the new leader and their vision. The funder’s perspective can provide helpful continuity and context as the new leader gets acclimated. 

Again, this stage is a great opportunity to support by making introductions to other funders, simplifying and streamlining paperwork (like suspending grant reporting for a period), or providing funds in support of strategic planning, coaching, and team-building across the organization. This helps further give space and time to allow new leadership to establish themselves, get to know their board and staff, and to build relationships with key constituencies and stakeholders.

Growing Awareness and Shifting Practice

As nonprofit leaders continue to transition out of their roles, there will continue to be a growing need for strategic funder support for organizations in transition. To meet the moment and equip funders to answer the call, the Leading Forward initiative is working to encourage philanthropy to shift its approach to nonprofit leadership transitions by facilitating collaboration and knowledge sharing among funders through its online community of practice, exclusive funder events, and a resource hub. Through these efforts, Leading Forward is boosting awareness of the need for more equitable support of nonprofit leadership transitions, with a particular focus on transitions involving leaders of color. 

Funders can play a key role in fostering organizational stability, giving nonprofits the breathing room to weather change while remaining focused on their mission. Embracing a trust-based approach and shifting from more traditional grantmaking strategies can create the conditions for authentic partnerships with grantees and help to build a stronger social sector that empowers organizations and leaders in times of transition.