Effective Succession Planning for the Executive Board and the Foundation Board

Those who wait until a resignation is imminent to begin succession planning for the executive board or foundation board are acting too late. Successful organizations view succession planning as an ongoing leadership task with clear responsibilities—and thereby lay the foundation for continuity, knowledge retention, and long-term operational capacity.

Responsibility for succession planning lies with the entire governing body. The outgoing member is not obligated to find a successor. However, that member plays an important role in documenting expertise and key contacts and networks in writing. In addition, they should provide support to their successor during the onboarding phase.

Composition and Recruitment of Governing Bodies

The appointment of new members to governing bodies should, whenever possible, be done on a rolling or staggered basis. If several members step down at the same time, there is a risk of reduced efficiency and a significant loss of knowledge and experience. It should also be considered whether term limits might be appropriate. Regular turnover in the strategic governing body brings fresh perspectives and opens up access to additional networks. On the other hand, there is often an extraordinary level of commitment from long-standing members, particularly those who helped found the organization. Furthermore, there is a risk that valuable expertise and institutional knowledge will be lost when they leave.

Preserving Expertise and Safeguarding Networks

Ensuring continuity is essential for long-term operational success. This applies in particular to preserving expertise across personnel changes, as well as maintaining and safeguarding networks of relationships. Continuity must be ensured both among employees and within the strategic management body. Proactive succession planning plays a key role in this regard.

The following measures are particularly recommended:

• Document key processes and important contacts (such as sponsors, donors, and partner organizations) as necessary, and ensure that these responsibilities are shared among several people.

• Analyze and systematically document relevant networks.

• Identify key personnel and ensure that each is supported by two individuals from the sponsoring organization and/or senior management.

• Document content and data in a shared electronic repository with a clearly defined data structure, independent of specific individuals (e.g., inventories, collection documentation, resolutions, directives, or background information for educational programs).

• Introduce new members of the Executive Board or Foundation Board to key stakeholders and key contacts at an early stage.

Recruitment for the Executive Board and the Foundation Board

When recruiting members of the executive board or foundation board, it is worth clarifying the following questions:

• What are the job requirements? What technical skills (e.g., finance, law, industry knowledge, or experience in the organization’s field of activity) are required?

• Is specific expertise required that should be provided by an external specialist?

• How can we achieve diversity in terms of gender, age, background, or professional experience?

• Are there any potential conflicts of interest or independence?

The motivation of board members and foundation board members is not much different from that of other volunteers. They want to make a meaningful contribution, broaden their horizons, take on responsibility, make decisions, and maintain their professional network.

Identifying potential candidates early on and maintaining a list of candidates pays off. Recruitment efforts should go beyond simply searching within the organization and one’s own network.

• Face-to-face interviews are an important part of the search process.

• Posting opportunities on specialized volunteer platforms, as well as within the nonprofit and foundation sectors or through local communities, increases the reach.

• The geographic search radius should not be too narrow. Suitable candidates are often willing to travel a longer distance for an interesting position.

Avoiding Conflicts of Interest

Special attention must be paid to safeguarding the organization’s purpose. It is essential to prevent individual governing bodies from reinterpreting this purpose to serve their own interests or exploiting it for personal gain. Potential conflicts of interest must be disclosed as early as the recruitment process. Ongoing conflicts of interest should be avoided whenever possible. In addition, clear recusal rules must be defined. Transactions between the nonprofit and members of the strategic governing body—so-called self-dealing—should be avoided whenever possible.

Preventing Demotivation

Inefficient meetings, unclear responsibilities, or unresolved conflicts can be demotivating. This makes it all the more important to conduct meetings professionally and to address tensions within the body at an early stage. The chairperson bears a special responsibility in this regard.

Introduction to the Feature

New members of the Executive Board, the Foundation Board, and the management team should receive a targeted and structured orientation to their responsibilities upon taking office and be familiarized with the organization’s processes and culture.

Successful integration begins with favorable conditions:

• Clear descriptions of tasks and roles

• A structured orientation program that includes meetings with key personnel and an explanation of responsibilities, the organization, and how things work

• Access to relevant documents such as bylaws, regulations, annual financial statements, and meeting minutes

• Opportunity to participate in meetings as a guest or observer before officially taking office

• Appointment of a mentor (“Gotte” or “Götti”) to support the new member