Have you been leading your charity for more than a decade? Have you thought about transition when you decide to retire?
Those who lead nonprofits generally tend to serve long tenures – terms measured in decades rather than in years – and many could not identify a successor if their chief executives suddenly departed.
The Queen Elizabeth Hospital Foundation in Charlottetown, Prince Edward Island, underwent succession planning and transition, replacing a CEO who had led the organization for more than 20 years.
The sole mission of the QEH Foundation is to fund medical equipment for the Queen Elizabeth Hospital, PEI’s main referral hospital. When Barb Dunphy joined the Foundation in 1985, revenue generation was $750,000 per year. Fast forward 20 years, the QEH Foundation generates on average $5 million per year, yet still short of hospital’s annual medical equipment needs.
Succession planning was part of the Foundation Board’s strategic plan since 2010 and following a successful $22 million capital campaign, the focus was on continued major gifts beyond the campaign.
In recruiting for a major gifts officer, the CEO was continually drawn back into the fold as she held the relationships and the background knowledge. The CEO and Board felt that it was her CEO duties that needed to be delegated to allow her the time to meet donors and prospective donors – not only provincially, but nationally and internationally. Island roots run deep! At this point, succession planning became a priority.
The Board then started discussion with Barb about how the organization would look if she were to take over the senior development role and have someone else take over the duties that kept her from getting out of the office. This resulted in a lot of reflection on Barb’s part and a proposal to the Board of what the future of the Foundation looked like, including the time when Barb decided to reduce her work week as a transition to eventual retirement.
With Barb’s charity-first approach, the Board invested in the plan with the CEO leading the execution.
Tracey Comeau was hired as the executive director. Restructuring took place with revenue generation reporting to the executive director. Tracey also attended Board meetings.
A communications strategy was key to ease staff and public perception of two organization leads, as well as a smooth transition phase for staff and loyal donors.
Unforeseen circumstances of long-term leaves in most positions allowed the new executive director the opportunity to have hands-on experience with all aspects of the organization including leading annual fund and signature events and working directly with volunteer canvassers. It also led to a longer transition period than likely would have happened, but was a valuable outcome.
After three years, Barb negotiated a reduced work week and major gift revenue goals with the Board. Given that she would then report to the new CEO, Tracey was involved in establishing contract primary responsibilities and goals. Once the contract was complete, the Board then negotiated with Tracey for the CEO position offer. Official transition took place at the Foundation’s annual general meeting when a new Chair of the Board began.
Nine months post-transition, there is palpable collaboration between Barb and Tracey and smooth transition with Board, staff and donors. The budgeted major gifts revenue is on track to double this fiscal year. Barb continues to mentor Tracey, and Tracey is set to begin succession planning for the next CEO, which begins with mentoring within the organization.
Not all organizations will have the benefit of time and overlap, as the QEH Foundation structure allowed, but all organizations do have the opportunity to begin planning now. It’s mission critical.
Tracey Comeau is the CEO of the Queen Elizabeth Hospital Foundation. She holds a Master degree in Philanthropy and Development from Saint Mary’s University of Minnesota and is a certified fund raising executive, CFRE.
