Cate Steane is the executive director of Family Emergency Shelter Coalition (FESCO), a nonprofit for families between homelessness and a home. With 60 people -- most of them children -- in its care every night, she went through a harrowing organizational crisis and lived to tell her First Person Nonprofit story about it:
Exactly a year ago, I told my board that we were on a path to end the fiscal year with a loss of $137,115, or 11% of the budget. Cuts in our government contracts for services had been brutal; foundations were retrenching in response to their investment losses, and individual donors were bowled over by the recession. Not good news, but we had some reserves and we would somehow muddle through.
When Blue Avocado asked for potential interviewees who had followed a founder or a long-time executive, we didn't expect 58 people to respond. We interviewed 18 executive directors who followed founders, and another 10 who followed long-time execs. Last issue's First Person Nonprofit and this article are also ramp-ups to the national survey of nonprofit leaders in similar positions. CompassPoint Nonprofit Services has conducted a study of such executives among grantees of the Packard Foundation, with the data so interesting that we are pleased to partner with them on the expansion of the study to a national audience. Nonprofit executives: please! Click here to take the survey!
If founding a nonprofit takes strong self-confidence and a soaring vision, following such a leader takes hard-headed management skills and just plain hard work, according to 28 "followers" -- let's call them "successors" because they succeeded long-timers. They work at organizations that range from 2 to 300 staff.
Here's a story that combines several themes: "I replaced the founder of 35 years. Plus, she was my mother! I'll have been in this job for 10 years come July, and nine of them have been a financial struggle. I'd be putting on this warrior clothing to go out and battle and find money and keep this vision solid. And then my mother would come in and say . . .
Too often the focus on nonprofit executive transitions is about the departing executive. We're in the middle of interviewing 58 executives who followed founders or long-time leaders. Here's just one of their stories; we'll call her "Amanda":
The job was a dream come true. I had become executive director of a organization where my love and loyalty had lain for years. I had started out there as a volunteer there right out of college. After working at other nonprofits I had come back to this organization -- I'll call it CW -- as an employee, and had risen to the job of program director.
Less than a year after I became the executive director, the co-founders -- who had never fully left the picture -- fired me. They had brought in a consultant to "coach" me, and they hired him as the new ED. A year after that this wonderful organization crashed and burned.
So exactly how do you lead someone up to a $1 million ask? The director of major gifts at a large regional environmental organization agreed to tell us everything . . . as long as we didn't reveal her name or organization.
And best of all: post your questions to her in the Comments section and she'll answer them there at the end of the week!
Major gifts aren't the right strategy for every organization, but we can still appreciate how this fundraiser talks about her job:
Q: Can you walk us through a major gift ask?
A: Well, here's an example. We sent our board members a list of new members, and one of them knew one of the people on the list, although not very well at all. But he knew that this person had a large capacity to give. So he sent that person an email saying
It just makes sense thatthe founder of the Center for Digital Storytelling would tell his own story in a remarkably compelling way. Here's Joe Lambert with a thoughtful First Person Nonprofit account of how organizational problems can bring out the creativity and best in people and how, through it all, life goes on, though it's your choice how to embrace its everchanging moods:
My friend Daniel recently shared this Margaret Atwood quote:
“When you are in the middle of a story it isn't a story at all, but only a confusion; a dark roaring, a blindness, a wreckage of shattered glass and splintered wood; like a house in a whirlwind, or else a boat crushed by the icebergs or swept over the rapids, and all aboard powerless to stop it. It's only afterwards that it becomes anything like a story . . .
What if you got a chance to chat over coffee with a deeply experienced, witty, and smart gay leader about the movement for marriage equality? He might say something you haven't seen elsewhere about the campaign. Listen in on a conversation with Matt Foreman(left, with Francisco De Leon to right):
Matt, isn't the Freedom to Marry movement a huge, unexpected, and unqualified success?
Well, yes. But frankly, I’m also a little conflicted about the issue. Fifteen years ago, when activists started pushing marriage equality in New York and I was lobbying for pro-gay legislation, I said "Folks, stay the hell out of Albany -- we can't even get a hate crimes bill passed because it would include the dreaded words 'sexual orientation' and you want us to put marriage on the table? No way, no how!"
I was convinced that marriage would have stalled and derailed . . .
A deputy director describes the crisis that befell her organization as the founding executive director left, how that organization almost closed down, and what she's learned from it for her new job as an executive director in another state and another field.
When I started with this Brooklyn organization as the deputy director, there was an understanding that the executive director, who had been there 20+ years, was going to retire in 3 to 5 years. She was the founder. The organization was trying to be thoughtful about the founder leaving, trying to be proactive.
We went through a major strategic planning process, worked on executive transition, and brought in a transition consultant. We did all the right things: we had the right committees and the ED announced her retirement fully a year ahead of time.
I didn't see any problems coming
They hired someone, but then after this candidate accepted the job, she pulled out at the last minute.
It was then the outgoing director began acting out.
My wife became friendly with someone she knew from PTA, and one day they invited us and our kids over for dinner. We hit it off. Ben [names have been changed] ran this nonprofit for low-income kids that did after school tutoring, had a big summer camp, and did some programs in the public schools in a low-income, mostly African American neighborhood. Something like 1,500 kids a year. Anyway, we got to be friends and he ended up asking me to join the board.
At first everything seemed fine although I wasn't sure what the board was adding to anything. I'm in banking so it was inevitable that I became the treasurer. It wasn't much work because most of the money -- maybe 80% -- came from the school district or city government. Ben really loved the kids and you could see he really bonded with them.
Then we started to lose some of the school district money. They were cutting back, things got pretty tough. We laid off a few people, but we were still bleeding . . .
We usually don't publish First Person Nonprofit articles anonymously. But in this case we know the individual and corroborated the key points of her story, and we understand why she has asked that her name not be published.
Four weeks and five days ago from this moment -- at 4 pm on a May afternoon -- I was fired. That morning the board chair told me our afternoon meeting would not be a finance committee meeting after all, but, rather, "about your future with the organization." The meeting lasted, at the most, 6 minutes.
"We would like you to resign," the board chair said.
"I have already submitted my resignation," I replied. Three weeks ago I had told the board I would be leaving in November. We were about to embark on a strategic planning process, and our big conference -- the one I created 11 years ago -- would be in the fall. That seemed like a fitting exit point.
"It's not acceptable to wait until November," he said. "We are terminating you effective immediately. Please turn in your keys and key card right now."