Being a first-time CEO at a nonprofit can feel quite overwhelming. That was certainly my experience, and it’s the consistent feedback I receive when coaching new executives. This should not be surprising given the pressure and myriad responsibilities that come with these jobs.

What is surprising is that newly minted leaders rarely receive structured support during their early months. Funders should do more to support new CEOs and ensure that the leaders and organizations they invest in are equipped to thrive during a leadership change.

Why Support New Leaders

First-time CEOs have to deal with the usual challenges of leading a nonprofit, manage the uncertainty that comes with a change in organizational leadership, and come to grips with being in the top job. That is asking a lot of any leader. It is no wonder so many struggle in their first CEO role and a significant percentage fail — to the detriment of these individuals and the organizations they serve.

Nonprofit leadership is tough in the best of times. And these are not the best of times. Today’s leaders are contending with ever-tightening government budgets; unrelenting challenges of fundraising and complicated board dynamics; decisions about how best to respond to important, contested issues like the Israel-Gaza war and DEI; and in the United States, the impacts of a potentially stricter regulatory environment.

Incoming CEOs face a host of additional challenges. Many funders pause or reduce their support during times of leadership change. Most new executives are recruited externally, with research showing that outside hires take twice as long to get up to speed as internal ones, and a significant proportion fail within the first 18 months.

Many first-time CEOs are not used to looking at the big picture — or over the horizon —and they are often overwhelmed by the loneliness of the role, feeling they have no one to turn to when dealing with particularly difficult problems.

Further, as nonprofits make a long-overdue push to diversify their leadership, boards and organizations often fail to consider the unique pressures placed on new leaders of color and others who have been marginalized. A 2022 survey by the Building Movement Project found that incoming executives of color lack the support provided to their white counterparts, are asked to do more for lower pay, and feel less trusted by their boards.

If we want to pay more than lip service to the undoubted need for more diversity of identity and lived experience among nonprofit leaders — and for more successful first-time CEOs in general — then we need to give them ample support to maximize their chances of thriving. That support should be thoughtful and tailored to the pressures and challenges they are likely to face and to the talents, expertise, and perspectives they bring.

How Funders Can Help

Grant makers have the clout to encourage nonprofits and their boards to better support new leaders and to provide resources to help them do so. Here are key ways funders can improve leadership transitions.

Increase overall funding, ideally in the form of multi-year, unrestricted grants. This is probably the most powerful thing funders can do. It serves as a vote of confidence and encouragement for the new CEO and gives them a boost as they’re looking to establish credibility. It also gives a positive signal to other donors. Now, of course, many funders won’t be willing to go that far, but regardless, their starting point should be to do no harm, and they should at all costs avoid reducing or freezing their funding at this sensitive time.

Provide direct, targeted support to the CEO during the transition. This is a more modest funding commitment that, when done well, can help funders protect their larger financial investment in an organization by better ensuring its continuing success and stability. This can also help diversify the sector by giving new leaders from underrepresented groups a better chance of thriving.

Here are elements that tailored support for incoming, first-time CEOs can include:

• An effective transition plan. This should include knowledge transfer, such as substantive briefings of the new CEO by the outgoing leader and the board chair; orientation and briefings on strategy, culture, key stakeholders, and finances; a communications strategy; and feedback mechanisms for the new CEO, including regular check-ins with the chair and other board members as required.
  
• Executive coaching. Coaching is a particularly powerful way of supporting a new leader: It allows the person being coached to tap into their own resourcefulness. Coaching offers time and space and structured, non-judgmental questioning to help the CEO work things out for her or himself. Coaches can also survey board members and staff to give “360-degree feedback” to the leader, providing valuable information on the priorities and concerns of those key stakeholders. Coaching support is usually provided for a set number of months, but it can be an ongoing process.
  
• Mentoring. Mentoring differs from coaching in that it’s about finding someone with more experience in leadership, such as a seasoned CEO, to offer advice and guidance. It’s generally more ad hoc and longer term. It is about “putting in,” as opposed to the “drawing out” of coaching. Both can be equally valuable, though successful coaching is likely to result in more sustained changes in behavior, as it encourages the person being coached to develop their own answers.
  
• Strategic advice. Another option is to have a leadership expert on retainer for consultation as required, particularly during the first six to 12 months, while the new CEO finds their feet. The focus here is on giving the CEO expert, impartial, tailored advice on specific challenges they encounter. Unlike coaching — focused on the individual’s self-development — and mentoring — more ad hoc in nature — this is a deeper investment in ensuring ready access to leadership expertise.
  
• Peer support groups. Given the loneliness of the role, particularly for leaders elevated from less senior positions and experiencing a changed relationship with colleagues, setting up a small group of peer CEOs can be particularly powerful as a forum for sharing challenges and advice. But new CEOs’ networks are often undeveloped, so they require assistance in setting up such groups, with introductions from those with established relationships. A coach, mentor or leadership expert can assist in making introductions.
  
• Leadership-development courses. Although not as prolific or available as their for-profit counterparts, there are many excellent courses out there for nonprofit leaders, and the best of these can equip new CEOs with skills and networks to help their transition.

It takes more than a thoughtful transition and tailored support to ensure the success of a first-time CEO. But given the huge challenges any new CEO faces, let alone one stepping into the top job for the first time, support from a funder can significantly increase their chances. A stronger focus on investing in leadership also contributes to creating a sector in which leaders of all backgrounds have a chance to thrive. This should be music to the ears of funders looking to make an outsize impact.