Spring 2016 issue of Horizons

NOT-FOR-PROFIT

Succession Planning for Not-For-Profits by Evelyn Law, CPA & Jessica Mueller, CPA

E at better, exercise more, lose a little weight, get more sleep, succession planning, these are all things we know we should do. We all know the reasons why we should do them; they make us healthier. Likewise, succession planning makes your organization healthier. The Aging Workforce According to the Bureau of Labor, by 2020, the median age of the workforce will be approximately 43 years old, and about 25% of the workforce will be 55 years of age or older. You have heard advice from industry associations such as the National Council of Nonprofits, and articles abound on the need to ensure your not-for-profit continues to operate effectively when short and long- term disruptions occur.

You already realize funding sources may be in jeopardy when long-time relationships are broken through turnover or retirement. As a not-for-profit, you have an advantage that for-profit businesses do not always have. You have probably already attracted talent that is dedicated to your mission. Not-for-profits, in general, tend to have loyal employees. You also already have a culture of stewardship, and not-for-profits generally have a reputation for stability and flexibility. These organizational characteristics are attractive to today’s younger workforce. Getting Started on Your Succession Plan Begin by gathering resources on how to develop an effective plan. Guidance

is available from groups such as BoardSource and the U.S. Office of Personnel Management.

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