Building a Nonprofit Leadership Pipeline: A Strategic Succession Planning Framework
Succession planning is more than just replacing leaders. It is a proactive nonprofit leadership development strategy designed to build a bench of ready and values-aligned individuals who can step into key roles when needed.
At Mission + Strategy, we view succession planning as a way to strengthen culture and preserve institutional knowledge. It ensures continuity during times of change. This is not a one-time event. It is a long-term investment in your people and your mission.
The need for a clear executive transition strategy has never been more urgent. According to 2025 research from Challenger, Gray & Christmas, Inc., 616 CEOs were replaced internally through July 2025. This nearly matched the 626 external replacements. This data highlights the growing importance of internal leadership development and the opportunity organizations have to build their bench before a transition occurs.
Generational shifts are also accelerating. The average age of departing CEOs in July 2025 was 70.3 years, which is a significant increase from 56.2 just one year earlier. Organizations that prepare now will be better positioned to lead through these shifts.
1. Start with a Clear Structure
Effective succession planning begins with clarity. You must define the key leadership roles in your organization. Identify the essential knowledge, skills, and abilities for each position.
Adopting a structured nonprofit succession planning framework helps organizations identify several critical factors:
Roles that are essential to mission continuity
Employees who are approaching retirement or transition
Internal candidates with high leadership potential
Current readiness levels and specific development needs
This process is not about making final decisions today. It is about creating visibility so that leadership transitions are not left to chance.
2. Develop Your Leadership Pipeline with Intention
Once you identify potential successors, the real work begins. Development must be intentional rather than passive. Organizations can support emerging leaders through these proven methods:
Mentorship: Pairing candidates with experienced leaders to build confidence.
Job Rotation: Offering exposure to different departments to broaden perspective.
Individualized Plans: Creating development goals tied to strategic objectives.
Regular Feedback: Building a culture of honest feedback to support growth.
Succession planning is also a vital tool for promoting diversity and inclusion. By considering candidates from a broad range of backgrounds, organizations build leadership pipelines that truly reflect their values.
Why You Should Prioritize Internal Development
Research consistently shows that internal candidates are more likely to succeed than external hires. This is especially true when an organization is stable and mission-driven. Internal leaders already understand the culture. They have built relationships and earned trust.
Focusing on internal growth sends a powerful message that you invest in your people. While external recruitment remains an option, evaluating internal readiness first demonstrates a commitment to long-term stability.
3. Monitor Progress and Plan for Transitions
Succession planning requires regular review to remain effective. Organizations should take the following steps:
Integrate leadership development into annual performance reviews.
Track progress on development plans during one-on-one meetings.
Use objective tools to assess leadership readiness.
Create clear milestones for future transitions.
When it is time to install a new leader, the transition should be thoughtful. Overlap periods and clear stakeholder messaging contribute to a smooth handoff.
4. Build Trust Through Transparent Communication
Communication is a frequently overlooked part of the process. Staff and board members need to understand the criteria and the timeline. Transparency builds the trust required for organizational stability. Succession planning does not need to be secretive. Open and inclusive processes are far more likely to succeed.
The Takeaway
Building the bench is about investing in who is next. It helps organizations stay resilient and future-ready. At Mission + Strategy, we help nonprofits create practical succession plans that align with their strategic goals. Leadership transitions do not have to be disruptive. They can be transformative.
Together, we are stronger.
If you’re interested in succession planning or balancing your mission and business strategies, we’re here to help.
Mission + Strategy is an invested thought partner to your nonprofit organization. Through our Strategic Advising, Mergers & Partnerships, and Shared Back Office service solutions, we help nonprofits achieve alignment between their mission and business strategies.
