Managing donor relationships in times of leadership transition

Several of the CEOs of nonprofits we work with are retiring this year. Some were the founders of their organizations; some have just been there for years. In all cases, their donors love them and give to their organizations largely because of their personal relationship to this CEO.

Since we train groups in teams of staff, board, and volunteers, we always hear the concerns of the rest of the team. "How should we communicate this transition to the donors so as to ensure their continued support of our organization, even after our beloved leader moves on?"

In some cases, the next leader has been selected and will overlap with the outgoing CEO. In others, there will be a hiatus, often with an interim CEO appointed, further jeopardizing donor loyalty. In some cases, the outgoing leader truly enjoyed cultivating donor relationships; for others, this role may not have come as naturally, yet the donors have come to expect direct contact with the leader.

My advice:

1. Take advantage of the occasion of the retirement and the strong donor relationships with the outgoing CEO to launch a sustainability or legacy fund in honor of the outgoing leader. This fund should be focused on the dreams of the outgoing leader, be it an expansion of children's programs, addition of a special treatment program, or a new center. Set a dollar goal for operating, capital, or endowment funds to be raised.
    
2. Make a list of all the donors with which your CEO holds the primary relationship.
    
3. The outgoing CEO meets with each donor personally to share their plans for leaving the organization (retirement, job change, etc.) and their dreams for the continued health of the organization under the next leader. If you will be conducting a sustainability or legacy campaign, tell them how that fulfills the needs of the organization and why it is so important to you as the outgoing leader. Arrange a time to come back to introduce the new leader to the donor.
    
4. The outgoing and incoming CEOs meet together with each top donor. Let the donors ask questions about the transition. Talk about the next dream or plan for the organization, be it operating funds to sustain programs, a new building, or an endowment. Ask for their advice and input about your plan. Include a board member or the development director in these meetings if appropriate. Ask if you may follow up with them to discuss their participation in the new fund.
    
5. Then have the outgoing CEO make that ask, by phone or in person after the meeting.
    
6. Have a farewell dinner or luncheon in honor of the outgoing leader –a "Free Feel-Good Cultivation Event" for donors and supporters (not a fundraiser) where the outgoing CEO thanks people sincerely for their gifts to the special fund and lets others know there is still time if they'd like to give. Introduce the new leader at this event, although the new leader should have no formal role. The focus is on a celebratory farewell to the longtime leader.
    
7. Within two months of the departure of the outgoing CEO, the new CEO meets alone with each donor to thank them for their gift, to update them on plans for using the funds and the status of the leadership transition overall. It is very important for the incoming CEO to keep asking for the donor's advice. Invite them to your office or center for the next meeting to reconnect them to the work. Small group donor box lunches in the CEO's office work well. Include board member and development director as appropriate.
    

If the transition has worked smoothly, invite the outgoing CEO to come back, after a six- to twelve-month hiatus, in a voluntary role on the sustainable funding committee.