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The Coming Leadership Deficit

The problem: An increase in demand for leaders and a decrease in supply of leaders causes a leadership deficit within the next decade, seriously undermining the ability of nonprofits to fulfill their missions.
Increase in demand:
  1. Nonprofits are growing in number and size.
  2. Over the next decade, the nonprofit sector may need twice as many senior managers as it currently has.
Decrease in supply:
  1. Baby-boomers are due to retire or move into other leadership roles. 65% of respondents faced leadership transition within 5 years.
  2. Generation X & Y are passionate about working towards social change, AND they want work-life balance, decent compensation, and proper leadership development.
  3. Funders view overhead as bad and are reluctant to fund capacity-building.


Summary recommendations from the research studies:

In General:
  1. Understand the enormity of the problem.
  2. Fund Capacity-building. “Leadership capacity is what matters most to the long-run effectiveness of any organization, including nonprofits.”
  3. Understand and discuss generational differences.
  4. Increase leader salary and benefits.
  5. Create an emergency succession plan.
  6. Collaborate to develop leadership across the sector.
Current Leaders:
  1. Seek funding for leadership development.
  2. Develop leaders internally.
  3. Mentor within and outside of the organization.
  4. Model better work-life balance.
  5. Recruit outside of the usual pools for leadership, including persons of color, the young, the for profit sector, and baby-boomers who wish to continue working.
  6. Be willing to develop a leader within your organization who will benefit another nonprofit organization.
Emerging Leaders:
  1. Take control of your career.
  2. Develop broad management expertise.
  3. Join a board.
  4. Find a mentor and/or work with a coach.
National Studies and Reports:

The Nonprofit Sector's Leadership Deficit
The Bridgespan Group, 2006

Daring to Lead: A National Study of Nonprofit Executive Leadership
CompassPoint and The Meyer Foundation, 2006

Passing the Torch: The Philanthropy Summit, 2006

Up Next: Generation Change and the Leaders of Nonprofit Organizations
The Annie E. Casey Foundation and the Building Movement Project, 2005

Ready to Lead? Next Generation Leaders Speak Out
CompassPoint, The Annie E. Casey Foundation, The Meyer Foundation and Idealist.org., 2008

Building Leaderful Organizations: Succession Planning for Nonprofits
The Annie E. Casey Foundation and CompassPoint, 2008


Also see:

Support Options for Nonprofit Professionals
Hingle Coaching and Cornerstone Coaching

Nonprofit Leadership: A Sampler of Networks, Fellowships, and Workshops
The National Council of Nonprofit Associations
Call or email Steve to set up your free coaching session: 608-572.0084