Articles

Laura Treneer writes: One of the best things about going to the ACEVO conference is having time to talk to charity leaders like Sandra Hastings, Chief Executive of Silverline Memories. Sandra’s Masters research looked at third sector leadership transitions, specifically succession planning for founders handing over to second generation leaders. We have all heard of founder syndrome. This is what Sandra discovered in her research.

Succession planning in the non-profit sector remains critically underdeveloped. Fewer than one third of organisations have a documented succession plan, with poor leadership transitions often linked to organisational decline. Yet, as this research reveals, effective succession is not simply about procedures – it is deeply tied to purpose, values and leadership identity.

Non-profit founders typically begin with passion rather than process. In early start-up stages, there is often “no end goal, no ambitious growth strategy and no formalised business plan”. These founder-CEOs are frequently social entrepreneurs, operating with a heroic leadership style that centres their vision and identity. As one participant put it, “the smell of the organisation” (Ghoshal, 1997) comes from the founder’s personal motivation and mission.

The need to move on

By the five-year mark, many non-profits begin to mature, necessitating a shift. “Administrative processes were developed from necessity rather than design,” marking a transition from heroic to processual leadership, where competence shifts “from the leader… towards the competence of the organisation” (Schweiger, 2020). This is not only functional but emotional: founders increasingly feel the weight of their role and recognise the need to distribute leadership.

As organisations grow, founders often begin to “download” their knowledge to new appointees – passing on both explicit (procedural) and tacit (cultural) knowledge. This involves not just how the work gets done, but why. The cultural dimension – values, purpose and shared belief – is central. Interestingly, participants found that what enabled their eventual departure was not the presence of strong plans or policies, but “the mission and values of the organisation, and the sense of purpose, commitment and devotion of the remaining staff”.

This cultural dimension emerged as unexpectedly crucial. While infrastructure and documentation remain important, it is “the personal approach, the motivation and essence of the founder… that is the key to succession planning”. This reinforces earlier research by Stinchcombe (1965) and Carmen and Nesbit (2013), who emphasise the founder's identity as central to non-profit DNA. Over time, however, this identity can become limiting unless it is shared.

Ingredients of successful transition

Successful leadership transitions occurred when founders gradually stepped back, often experiencing a “crisis” phase as they let the organisation develop its own identity. Each new staff member created distance between founder and delivery work, enabling space for strategic development but also sometimes bringing a sense of diluted mission.

To prepare effectively, founders signalled their intention to leave at least two years in advance, giving time for communication, stakeholder engagement and leadership development. Crucially, organisations that thrived invested in relational and cultural continuity – not just operational handovers.

This research concludes that succession planning in non-profits must go beyond practical guides. It must capture the “smell” of the organisation – the values, behaviours and collective intent that cannot be taught but must be demonstrated, witnessed and internalised. Through strong induction, value-centred appraisals, shared stories and leadership modelling, charities can ensure continuity of mission.

As Sandra concludes: “The founder’s motivation for setting up the non-profit organisation remains central to its core identity, values and purpose. Understanding this, and incorporating into business practices methods to broadly articulate these values and organisational identity, is of equal, if not greater importance than the processual elements of leading and running a non-profit.”

What matters most, in other words, is not what changes in a founder’s leadership, but what remains constant.

If you’re a charity founder considering handing over the reigns, we can provide support and advice. Get in touch

If you’d like to speak to Sandra about this directly, email [email protected]