Why Your Nonprofit Should Hire an Interim Leader After an Executive Director Departs

It was shocking. Martha Hunt Handler, the board president of the Wolf Conservation Center, felt she had very little choice on what to do next when the organization’s CEO of 18 years decided to retire.

“We didn’t have a succession plan in place, and Westchester County, New York, isn’t the most affordable place to live in the country,” Handler said.

The Wolf Conservation Center is not alone. CEO and executive director exits in the nonprofit space continue to increase, with nearly 500 departures in 2024, most of which occurred in December, according to a Challenger, Gray & Christmas report. This trend points to a broader issue: Nonprofits, already burdened with tight budgets and heavy demands, face unprecedented leadership turnover, and the situation shows no signs of slowing down.

This crisis isn't just a matter of numbers; it reflects more profound systemic challenges in the nonprofit world. Without clear succession plans — something that only 23% of nonprofits have — organizations are left vulnerable, scrambling to find their next leaders while trying to keep operations running smoothly. Burnout, limited resources and a lack of long-term planning have only exacerbated the problem, and many nonprofits are left without a clear path forward during these critical transitions and hire too quickly or reward loyalty by hiring the next executive director from within.

Related story: Why Tax-Exempt Organizations Should Have Succession Plans

As nonprofit boards and stakeholders grapple with the impacts of leadership turnover, an often-overlooked solution emerges: interim leadership. Where seasoned professionals step into organizations to offer a stabilizing force and provide operational improvements while the search for a permanent CEO unfolds.

“I had never heard of it,” Handler said of the organization that advances the survival of wolves through education, advocacy, research and recovery. “It was the best thing that could have happened at that moment. We were in the mindset that we needed someone who was wolf-centric first and a leader second, and the experience changed the whole way we thought about how to run the organization.”

Handler, who brought in Alice Rodd O’Rourke as an interim, said bringing in a seasoned veteran in nonprofit leadership helped Wolf Conservation Center overhaul its systems and be a neutral party to the staff to start to build a more cohesive culture.

“I really enjoyed helping bring a sense of calm to the whole process,” O’Rourke said. “It’s a chance for [nonprofits] to get a depth and breadth of perspective beyond what a normal [nonprofit] gets.”

The Benefits of Nonprofit Interim Leadership for Nonprofits

If your nonprofit board finds its organization without a leader and a succession plan, interim leadership might offer a temporary solution during the search for a permanent hire. 

Allowing Time to Find the Right Leader 

The hiring process for a new CEO or executive director is lengthy. Boards must assess potential candidates, interview them and ensure they’re selecting someone who aligns with the organization’s long-term vision and values while keeping the existing staff confident and calm during the process.

“We didn’t want to feel pushed in the search,” Roxie Severance, board chair for The Caleb Group, a nonprofit providing affordable housing for low-income families across New England, said. “It gave us a fresh perspective, allowing us to fine-tune what we wanted for a new [executive director]. For us, it was someone strong in finance and acquisitions.”

Providing Stability to the Staff

Staff often feel uncertain and anxious during leadership transitions. Interim leaders offer stability, clear communication and direction to staff, ensuring everyone is on the same page while the search for a permanent CEO continues. By focusing on mission-driven work and reinforcing the organization's core values, interim leaders help alleviate employee concerns and foster a sense of continuity during uncertainty.

Retaining Organizational Momentum

Nonprofits often face long-term projects that require consistent effort and attention. Interim leaders ensure that these projects continue to move forward. They can identify areas for operational improvement, streamline processes and implement changes that make the organization more efficient while focusing on the broader mission.

“We have an important capital campaign underway right now,” Handler said. “We needed to set ourselves up for success by putting improved financial processes as the foundation to begin that campaign. As a result, we’re becoming a new organization capable of a bigger impact.”

Permitting the Board to Focus on the Search, Not Daily Operations

A board of directors' responsibility is governance. While a board member may have hands-on experience with the organization's mission, adding interim leadership responsibilities to the important task of searching for the next executive director distracts from important strategic decisions. Bringing in an interim leader enables the board to focus on finding the best permanent replacement, knowing that the organization’s day-to-day needs are being expertly handled.

Diagnosing Issues

Bringing in an interim executive director is also like bringing in a consultant who can evaluate the organization's current state. In O’Rourke, the Wolf Conservation Center got an executive with 30-plus years of experience across the nonprofit and for-profit industries. The Caleb Group was exposed to a new level of expertise, Severance said. 

“Our interim didn’t know much about housing, but he had superb leadership skills,” she said. “We didn’t know as much as we should have about organizational effectiveness, so the interim met with staff members and got the organization caught up on operational processes.”

The Benefits of Being an Interim Leader

While the organization gains stability from interim leadership, the interim executives experience significant personal growth and professional rewards.

Gaining New Experience and Broadening Their Expertise

For many experienced nonprofit executives, stepping into interim leadership roles is an opportunity to gain valuable experience in a new environment. These roles allow interim leaders to refine their skill sets, learn new techniques for organizational management and position themselves for future permanent roles by getting exposure to causes they hadn’t worked in before. With the knowledge gained from navigating transition periods, interim leaders bring a wealth of knowledge that can be invaluable for future nonprofit leadership opportunities.

“Having an interim assignment can give the kind of experience that you can tell a future board of directors that you’ve done something like what they’re looking for from a leader,” O’Rourke said.

Making the Immediate Impact and Delivering Value

Interim leaders are often hired into a scenario of urgency where they’re asked to solve pressing issues and stabilize the organization quickly. This provides them with opportunities to make tangible differences right away. Whether it’s solving an operational problem, revamping a fundraising strategy or improving team dynamics, an interim leader can deliver immediate results that impact the organization.

Serving as a Mentor and Role Model

In addition to stabilizing the organization, interim leaders serve as mentors and advisers to both the board and staff. They can offer valuable insights into the qualities of the next permanent leader, helping boards make more informed decisions when selecting a successor. Furthermore, interim leaders can guide staff through the transition process, offering support and advice on managing the emotional and practical challenges of leadership changes.

Nonprofit leadership transitions are inevitable, but how organizations handle them can make all the difference. Too often, boards rush to fill the top spot, fearing instability — yet in doing so, they may miss an opportunity. Interim leaders don’t just hold down the fort; they often strengthen operations, boost morale and help clarify what the organization truly needs in its next leader.

So, the real question isn’t just who will lead next, but how will a nonprofit use this transition to emerge even stronger?

The preceding post was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.