North Carolina is home to a vibrant nonprofit sector – nearly 40,000 charitable nonprofits employing over 310,000 people, about 9% of the state’s private workforce. These mission-driven organizations, from Greensboro to Wilmington and Charlotte to the Blue Ridge, rely on effective leadership to deliver on their missions. As many long-serving executives retire and the talent market tightens, nonprofit executive search has become a strategic priority.
When to Begin an Executive Director Search
Timing is everything in an executive transition. A common mistake is waiting too long to begin the search for a new Executive Director (ED). Ideally, succession planning should be an ongoing conversation. According to BoardSource, only 29% of nonprofits have a written succession plan in place – meaning most organizations are unprepared for a leadership change. If your nonprofit doesn’t have a plan, the best time to start creating one is now, before a vacancy is imminent. And if a departure is on the horizon, it’s critical to start the search process early.
Plan Proactively vs. Reactively
Nonprofits that anticipate leadership transitions can avoid crisis mode. In North Carolina, a 2016 survey of nonprofit CEOs found that nearly 60% planned to retire by 2020– a wave of transitions driven largely by baby boomer retirements. Many organizations, however, were caught flat-footed by these departures. The same report highlighted frequent pitfalls when a chief executive leaves: minimal planning by the board, little thought to the kind of leader needed next, sudden exits with no backup plan, and lack of support for the departing leader and staff. These missteps can create crises of low morale and shaky public confidence, as stakeholders (from donors to partners) grow concerned about the nonprofit’s stability. The takeaway is clear – begin planning the search as soon as you know a transition is coming, if not sooner. Engaging your board in succession discussions 12+ months before a planned retirement or exit is not overkill; it’s prudent governance and risk management.
Draft a Timeline
Once an executive’s departure date is known (or even tentatively known), work backward to establish a search timeline. Most full executive searches take several months from launch to hire. For example, a national search for a nonprofit CEO typically takes about 4–5 months to yield a finalist who accepts an offer. After that, expect the new hire to give their current employer a reasonable notice (often 1–2 months). In total, it could be six months or more from kicking off a search to having your new leader in the seat. Given that, if your outgoing ED plans to depart in a year, you should ideally start the formal search process at least 6–8 months prior to that. Starting early also allows time for stakeholder input, thoughtful recruitment, and even a bit of overlap for knowledge transfer if feasible.
Emergency Transitions
Of course, not all departures are planned. Illness, sudden resignations, or terminations can leave a leadership vacuum with little warning. That’s why every board should have an Emergency Succession Plan – identifying who steps in on an interim basis and how key duties will be covered. If you’re facing an unplanned vacancy, you’ll need to move quickly to appoint an interim director (if one isn’t already designated) and then launch an executive search as soon as practical. In these cases, beginning the search immediately – even as you stabilize operations with an interim – is crucial to minimize downtime.
Seasonal Considerations
In planning when to begin, also consider the calendar. Nonprofit executive searches often avoid the late-holiday season and summer doldrums when candidates may be less available. Many organizations find that launching a search in the early fall or the start of the new year yields strong candidate pools, as people settle back from vacations and start thinking about new opportunities. Conversely, if your chief executive resigns in November, you might use the remainder of Q4 to line up your search firm or search committee preparations and then hit the ground recruiting in January. The key is not to lose momentum – but also to recognize when a search might benefit from tapping into prime candidate availability.
Bottom line: begin your executive director search as early as possible. Early planning allows you to define the leadership qualities needed for your nonprofit’s next chapter and avoid scrambling. You’ll thank yourself later when your organization experiences a smoother transition with less downtime. Start early, have a plan, and you’ll set the stage for success.
Bridging the Nonprofit Talent Gap in NC
North Carolina nonprofits are facing workforce and leadership shortages. In a 2023 survey, 81% of NC nonprofits reported job vacancies, with salary competition cited as the top challenge in hiring and retention. High vacancy rates in mission-critical roles underscore a growing talent gap.
North Carolina’s nonprofits are grappling with a talent gap – especially in leadership positions. As seasoned executives retire or step down, many boards are finding it challenging to attract the next generation of leaders with the right skills and passion for the mission. Part of this challenge is simply a numbers game: the nonprofit sector is growing, but the pool of experienced leaders isn’t keeping pace. Another part is geographic and cultural: nonprofits in NC may need leaders who understand the local context (from rural communities to booming metros) while also bringing broader perspectives. Let’s unpack what this talent gap looks like and how to bridge it.
Retirements and Fewer Ready Leaders
The leadership turnover tsunami that was predicted a decade ago is now in full swing. North Carolina has already seen a wave of retirements among long-time CEOs. But the pipeline behind them is not as robust as hoped. Nationally and regionally, many younger professionals are hesitant to step into executive director roles. In fact, research by the Building Movement Project found that, “just as more baby boomers are stepping down from the top spots, fewer people want to take their place”. This reluctance can stem from seeing the toll of the job – long hours, fundraising pressures, burnout – or from a lack of mentorship and growth opportunities that would prepare rising leaders for the top job.
The “Quiet Crisis” in Nonprofit Careers
North Carolina’s nonprofit community echoes national trends of workforce strain. These aren’t just entry-level vacancies – many are key programs and management roles. Organizations cited salary competition as the number-one obstacle to recruiting and retaining talent. Nonprofits, especially small to mid-sized ones, often can’t match corporate salaries, leading to a talent drain. Additionally, burnout and stress are driving high turnover, as the pandemic and economic uncertainty have stretched many staff thin. The overall annual nonprofit staff turnover hit 19% in 2022, higher than the 12% rate in other industries – a sobering statistic that includes leadership roles. When experienced people leave faster than they can be replaced or groomed, a talent gap widens.
Internal Talent Development (or Lack Thereof)
Ideally, nonprofits would promote from within, turning strong mid-level staff into the next executive directors. This “leadership development deficit”bridgespan.org means nonprofits frequently have to look outside for new leaders. The reasons are varied: some organizations lack formal leadership development programs, some have limited advancement opportunities (a small nonprofit might only have one ED and no deputies), and some emerging leaders leave for other nonprofits or sectors due to better opportunities or frustration. Regardless, the outcome is that when a CEO slot opens, there may be no ready successor waiting in the wings.
Bridging the Gap
So how can North Carolina nonprofits bridge this talent gap? It requires a two-pronged approach: developing talent from within and casting a wider net beyond traditional pipelines. On the internal side, forward-thinking organizations invest in staff development, mentorship, and succession planning. Encouraging high-potential employees to take on new responsibilities or stretch roles can prepare them for leadership. Some NC nonprofits are creating “deeper benches” of future leaders, a strategy encouraged by groups like the North Carolina Center for Nonprofits through programs and coaching. This might include sending staff to leadership institutes, arranging mentorship with board members, or cross-training staff so multiple people understand key leadership functions.
However, internal cultivation alone may not fill the gap, especially if your current staff is very lean or if you require skills that no one in the organization yet has. That’s where strategic executive search comes in (whether conducted by your board or with a firm’s assistance). To find the right leader, nonprofits in NC increasingly need to reach beyond their immediate network. For instance, a human services nonprofit in Asheville might find its next CEO in the Triangle, or a Charlotte-based foundation might recruit a leader from out-of-state who has ties to North Carolina. A well-planned search will leverage personal networks, sector associations, and online platforms to surface candidates who might not be actively looking. In fact, many of the best candidates are “passive” – gainfully employed and not scanning job boards. Identifying and wooing these individuals requires extra effort, but it can dramatically expand your talent pool.
Diversity and Inclusion in Leadership
Bridging the talent gap also means addressing diversity. Many boards are recognizing that they need leadership who not only have strong skills but also reflect the communities they serve. North Carolina’s population is diverse, and nonprofits are increasingly prioritizing candidates of color and those from various backgrounds. But organizations must be intentional in both recruiting and supporting diverse leaders. Studies have found that leaders of color often ascend to top roles without sufficient support and face additional challenges once hired, contributing to shorter tenures. To counter this, ensure your search process is inclusive (for example, ensure the search committee itself is diverse and mitigate bias in screening). And once hired, support new leaders through onboarding, coaching, and an inclusive organizational culture, so they want to stay and thrive. Bridging the talent gap isn’t just about finding someone to take the job – it’s about making sure the right leaders (inclusive, skilled, and mission-driven) are in place and set up for success.
Leveraging NC’s Networks
Fortunately, North Carolina has robust networks to tap into. Organizations like the North Carolina Center for Nonprofits and local chapters of professional groups (such as Association of Fundraising Professionals, nonprofit young professionals networks, etc.) can be valuable resources for identifying rising leaders or spreading the word about opportunities. Regional conferences, leadership programs (like Leadership North Carolina, or regional initiatives in cities), and university nonprofit management programs are also feeding the pipeline with talent. As you conduct an executive search, don’t hesitate to reach out through these channels – someone who might not apply through a job posting might respond to a personal referral or a targeted inquiry. In South Carolina and the broader Southeast, similar networks exist and can be utilized to cast a wider net.
In summary, the talent gap in NC’s nonprofit sector is real – but it can be bridged with a proactive, inclusive strategy. Recognize that attracting top-notch nonprofit leaders today may require offering competitive compensation (to the extent you can), highlighting the impact opportunity (many candidates are drawn by the chance to make a difference), and sometimes being flexible, such as considering remote/hybrid leadership or relocating a great candidate. By investing in your people and embracing a wide-ranging search approach, you’ll increase your odds of finding that ideal leader who can carry your mission forward.
How Retained Search Supports Mission Success
When it comes to hiring a nonprofit executive, the process is about far more than filling a position – it’s about securing the future of your mission. A retained executive search (partnering with a dedicated search firm or consultant who works on an exclusive basis for your organization) can significantly increase the likelihood of a successful hire. But why is a retained search often worth the investment for mission-driven nonprofits? The answer lies in the strategic value and outcomes that an expert search partner brings, ultimately supporting your mission’s success.
Beyond “Post and Pray”
A retained search firm does much more than post a job ad and forward resumes. It crafts a strategy to your organization’s needs and actively recruits candidates who fit your mission and culture. For example, CapDev – a firm of nonprofit consulting experts based in North Carolina – takes a proactive approach to identify leaders with the right “local flavor” and passion, often reaching candidates not even on the job market through networking and original research. This kind of outreach is crucial. Without it, you risk missing out on high-caliber candidates who aren’t actively looking but could be the perfect fit. By engaging a retained search, your organization can benefit from a broader, more qualified candidate pool, increasing the chance that your next executive will truly excel.
Thorough Vetting and Alignment
One of the biggest advantages of a retained search is the rigorous screening and vetting process. It’s not just about finding a leader – it’s about finding the right leader. A specialized search consultant will typically conduct in-depth interviews, background checks, reference calls, and even assessments to evaluate candidates from every angle. This matters because the cost of getting it wrong is steep. Consider the data: the transaction costs of finding and onboarding a new senior leader can be as high as half of the leader’s annual salary, when you factor in recruiting expenses, staff time, and lost productivity. And that’s just the financial cost. A bad hire at the executive level can derail programs, unsettle your team, and even spook donors (imagine the setback if a new CEO leaves after a year or underperforms). Retained search is designed to mitigate these risks by exhaustively evaluating candidates’ skills, experience, leadership style, and commitment to your mission before they ever reach your final round. The result is a higher likelihood of a successful, long-tenured placement, which translates into stability for your organization and momentum for your mission.
Strategic Insight and Consultation
A good executive search partner doesn’t just push candidates – they act as a consultant and guide throughout the transition. They can help your board refine the leadership role description to match your strategic goals, advise on market compensation so you can competitively attract talent, and manage expectations on timeline and candidate availability. Importantly, they bring objective expertise at a sensitive time. Board members and staff may have differing ideas of the “perfect” leader; a search consultant can synthesize that input and present a unified profile that everyone buys into. Moreover, they can advise whether an internal candidate truly measures up against the external market, ensuring a fair process (more on internal candidates in the FAQ). By having this outside perspective, your organization avoids insular thinking and opens up to candidates who might not have been considered otherwise. All of this strategic input leads to an outcome where the selected leader has the competencies and vision aligned with your nonprofit’s future direction – a critical factor for mission success.
Preserving Focus on the Mission
Hiring a CEO or senior executive is time-consuming. If you task your board search committee or current staff leadership with managing the entire search process, it can pull them away from day-to-day mission responsibilities for months. One board chair described a CEO search as “a part-time job on top of a full-time one” in terms of hours required. A retained search firm can relieve much of this workload. They handle the heavy lifting of sourcing and screening, so your committee can focus on the most important part: thoughtfully interviewing finalists and making the decision. This means your nonprofit’s programs and fundraising don’t grind to a halt while you hunt for a new leader. In essence, you’re outsourcing the process to experts so that your team can keep their eyes on serving the community. This continuity is itself an outcome that supports your mission – the organization keeps running smoothly even during the transition.
Confidentiality and Stakeholder Confidence
In some cases, a nonprofit may need to conduct a discreet search (for example, if replacing a founder or if an executive is stepping down under sensitive circumstances). A retained search offers a higher degree of confidentiality and professionalism. The search firm can quietly approach candidates and manage communications in a way that protects reputations and relationships. This is harder to do if a board is handling it informally. Additionally, when funders and partners hear that your organization is using a respected search firm, it can boost their confidence that the transition is being handled well. It signals that you are investing in getting the right leader. Given that leadership transitions can make donors nervous (“Will the new person be as good? Should I wait to give until I see what happens?”), demonstrating a careful process can reassure stakeholders and maintain support during the changeover.
Mission-Driven Matchmaking
At the end of the day, nonprofits succeed when they have leaders who deeply connect with their mission and community. Retained search firms that specialize in nonprofits (such as CapDev or others in the Carolinas) understand this. They often have their own networks of nonprofit professionals and a grasp of what mission-driven leadership entails. They are not just filling a job; they are matching the values and vision of an organization with the passions and talents of a candidate. For instance, CapDev’s approach emphasizes finding “ideal-fit candidates” who can “make a real contribution” to furthering the mission. This alignment means your new executive director isn’t just capable on paper – they are fired up about your cause, whether it’s educating children, protecting the environment, advancing health, or any mission in between. And a leader who is truly aligned with the mission will inspire others, from staff to volunteers to funders, driving greater impact. That is the ultimate return on investment of a retained search: not only do you fill a vacancy, but you potentially gain a champion who elevates your nonprofit’s work to new heights.
In summary, retained executive search supports mission success by ensuring you hire the right leader, the first time, with minimal disruption and maximum alignment. It’s a strategy to de-risk one of the most important decisions your organization will make. While it does come with a cost, the cost of a failed or mediocre hire is far greater when measured in lost time, money, and momentum. By partnering with experienced search professionals (such as the CapDev team with decades of service in our region), you position your nonprofit to navigate leadership change smoothly and come out stronger – ready to pursue your mission with a leader who is capable and committed.
Executive Sourcing for North Carolina Nonprofits
Finding great leaders requires knowing where (and how) to look. Executive sourcing refers to the methods used to identify and attract potential candidates for a senior role. For North Carolina nonprofits, effective sourcing is a blend of tapping into local networks and casting a wider regional or national net for talent. Here we outline strategies for executive sourcing that are particularly relevant to mission-driven organizations in the Tar Heel state (with lessons applicable to South Carolina as well).
Leverage Local and Regional Networks
North Carolina boasts a rich ecosystem of nonprofit professionals. From the Triangle to the Triad, Charlotte to Asheville, there are experienced leaders and rising stars who may be the perfect fit for your organization – if you can reach them. Start by leveraging local networks: consider who in your community might know of qualified candidates. This could include peer organizations’ leaders, your nonprofit’s funders and partners, community foundations, or sector support organizations. A quick win is to spread the word through the North Carolina Center for Nonprofits and its job board or listservs – this reaches people already committed to the state’s nonprofit sector. Don’t forget academic connections too; colleges and universities (e.g., Duke, UNC, NC State, UNC Charlotte) with nonprofit management programs or public administration departments often have alumni networks and career centers that can publicize an opportunity.
Beyond the state, look regionally. CapDev’s experience shows that a Southeastern search can yield strong candidates who have ties to the Carolinas. Perhaps someone grew up in NC/SC, moved away for a corporate career, and now wants to “come home” and give back through nonprofit work. Those individuals can be very motivated candidates. Likewise, neighboring states like Virginia, Georgia, or Tennessee could harbor nonprofit professionals with relevant experience open to relocating for the right leadership role. Part of sourcing is telling the story of your opportunity in a way that resonates beyond your immediate area. Why would someone move to join your cause? Emphasize the strengths of your organization (impact, community support, etc.) and the appeal of the location (e.g., a vibrant arts scene, scenic beauty, family-friendly community, etc., depending on where you are). North Carolina is an attractive place to live and work – use that in your recruitment narrative.
Original Research and Passive Candidates
Don’t rely solely on applications rolling in. Often, the best candidate is one who isn’t actively job-hunting. This is where conducting original research comes into play. It might involve systematically identifying leaders at similar organizations, reading news about nonprofits (who’s innovating or who successfully led a project), or scanning LinkedIn for people with the right keywords in their profile. Professional search firms like CapDev make extensive use of databases and networks to find these passive candidates, and your search committee can adopt a similar mindset: Who would we love to have in this role, if we could choose anyone? Make a “dream list” of attributes and perhaps even names, then see if you can get referrals or find contact info for those individuals. Personal outreach – a call or email saying, “You came to mind for this opportunity; would you consider talking about it?” – can be incredibly effective in sourcing. Even if those individuals say no, they might refer you to someone else.
Consider also the role of social media and digital platforms in sourcing. Posting on LinkedIn is obvious, but also actively search LinkedIn for keywords (e.g., “nonprofit executive director North Carolina” or similar leadership titles) and see who pops up. Check groups on Facebook or other social platforms where nonprofit professionals in NC congregate. While these methods can be hit-or-miss, they sometimes surface a gem you wouldn’t find otherwise.
Executive Search Firms and Sourcing Services
Many nonprofits in North Carolina turn to retained search firms (as discussed in the previous section) specifically for their sourcing prowess. Firms like CapDev maintain a “resume bank” and broad connections, which means they might already know candidates who fit your role. In fact, CapDev offers a candidate sourcing service that focuses on delivering a pipeline of qualified prospects, allowing the nonprofit’s search committee to then take over interviewing. The advantage of engaging professionals is efficiency and reach: they might approach candidates from diverse backgrounds, including those you wouldn’t think to contact. For example, say you’re a health nonprofit – a search consultant might reach out to healthcare executives, public health leaders, even private sector managers with a passion for health causes. This creative, cross-sector sourcing can yield candidates who bring fresh perspectives to the nonprofit world.
If budget doesn’t allow a full search engagement, some organizations opt for a middle ground: hire a consultant just for the sourcing phase (to generate a list of candidates), then handle interviews in-house. The good news is that the marketplace for nonprofit executive talent in the Carolinas isn’t as vast as say, New York or D.C., so a knowledgeable local recruiter can often pinpoint likely prospects relatively quickly. As a nonprofit board, you should weigh the cost of professional sourcing against the potential cost of a prolonged vacancy or a failed DIY search. In a state where, as noted, competition for nonprofit talent is stiff, professional help in sourcing can be a wise investment to ensure you don’t settle for a subpar pool.
Assessing Fit: Mission, Culture, and Community
Sourcing is not just about finding people with the right resume; it’s about finding those who fit your organization’s culture and the community you serve. North Carolina’s regions have distinct cultures – what works in a Raleigh executive might not work in a small-town eastern NC community, and vice versa. As you source candidates, think about cultural fit and cultural contribution. A case in point: when The Winston-Salem Foundation hired a new Vice President through CapDev’s search, they looked not just for “cultural fit” but “cultural contribution” – someone who would add to the organization’s culture in meaningful ways. That’s a smart mindset. Identify the values and norms of your organization (collaborative? high-energy? consensus-driven? fast-paced? etc.) and seek evidence of those traits in candidates’ backgrounds. Are they from North Carolina or the South, or do they at least demonstrate appreciation for the region? For external candidates, be sure to discuss why they want to relocate and how they plan to immerse themselves locally – a successful hire will be someone eager to build relationships in your community, not just view the job as a stepping stone.
During sourcing, you may also prioritize candidates with certain connections. For instance, if funding is a big part of the ED role, you might target individuals known in the philanthropic community. If advocacy is key, maybe someone who has been engaged in policy circles. By mapping the ecosystem around your nonprofit’s mission, you can source from those niches: e.g., for an environmental nonprofit, check with regional land trusts, parks departments, or green business networks for potential names.
Inclusive Sourcing Practices
To ensure a diverse candidate pool, be intentional in where and how you source. Use channels that reach people of color and other underrepresented groups – such as networks of African American or Latinx nonprofit professionals in NC, women’s leadership forums, or faith-based community networks if relevant. The way you write your job description can also influence who throws their hat in the ring. Avoid overly narrow requirements that might screen out great people (for example, requiring “15 years nonprofit executive experience” could deter a talented candidate with 10 years or someone from the corporate sector who could transition). Focus on skills and lived experiences that truly matter for the job. In sourcing, sometimes nontraditional candidates emerge – like a corporate executive who’s volunteered extensively and is now seeking a mission-driven second career, or a military veteran with leadership experience wanting to lead a nonprofit. North Carolina, with its mix of industries and large military presence (e.g., Fort Bragg, Camp Lejeune), has folks like these. Don’t overlook them. The key is assessing their commitment to the mission and transferable skills.
Use Data and Outreach Tools
Modern sourcing also means tracking and follow-up. Create a simple spreadsheet of prospects and contacts made. Use email campaigns strategically – perhaps sending a compelling opportunity summary to lists of nonprofit contacts (Mailchimp or similar tools can help). Some organizations also host “virtual information sessions” for a CEO search, inviting interested parties to learn more in a group webinar format – this can coax passive prospects to take a closer look without initially committing to an interview. Get creative: if your nonprofit has a strong social media following or a lot of volunteers, let them know about the search (“Do you know someone who would be a great leader for us? We’re looking!”). Sometimes your next executive might be a connection-of-a-connection of someone who already loves your cause.
In essence, executive sourcing for North Carolina nonprofits is about combining high-tech and high-touch approaches. High-tech (digital platforms, databases, email) helps you broadcast and identify talent efficiently. High-touch (personal outreach, network tapping, relationship building) helps you persuade and vet the candidates who emerge. Organizations like CapDev have refined this mix over decades of work in our region – for example, they conduct a customized “IDEAL candidate survey” of stakeholders to define what’s needed, which informs targeted outreach. While your nonprofit may not replicate that exactly, the lesson is to be deliberate and informed in what you seek, and then go out and find those people. North Carolina’s nonprofit community may be facing a talent gap, but with smart sourcing strategy, you can connect with leaders who have the passion and expertise to lead your organization to new heights.
FAQ: Common Questions from Nonprofit Boards and Leaders
In this section, we address a few frequent questions nonprofit boards, executive directors, and search committees often have about the executive search process. These FAQs provide quick, candid answers to help you navigate concerns as you embark on finding your organization’s next leader.
Q: How long does a nonprofit executive search usually take?
A: Plan on around 4 to 6 months for a thorough executive director search process from start to finish. This includes time to prepare the search, advertise or recruit candidates, conduct interviews in multiple rounds, and make a selection. For instance, a focused CEO search often takes about 4–5 months to reach an accepted offer. Remember to add the candidate’s notice period to this timeline – many executives will need to give their current employer 30 to 60 days’ notice. So, if you start a search in January, you might realistically have your new leader in place by June or July. Searches can sometimes be faster (perhaps 3 months) if the candidate pool is readily available or the role is highly attractive. Conversely, they can take longer (upwards of 8 months) if the profile is very specialized or if unexpected delays occur (e.g., a top candidate withdraws, requiring you to revisit your pool).
Bottom line: begin your search early enough to accommodate a half-year process. Rushing it could lead to a shallow pool or a hasty choice, whereas a reasonable timeline allows you to find and vet the best candidates.
Q: Our executive director just resigned unexpectedly. Should we hire an interim ED, or rush to find a permanent replacement?
A: In cases of an unexpected departure, bringing on an interim executive director is often a wise move. An interim ED (whether a staff member, board member, or external consultant stepping in temporarily) provides leadership and stability while you conduct a thoughtful search for the right long-term leader. Trying to rush a permanent hire in a panic increases the risk of a poor fit. Instead, use the interim period to your advantage: assess what the organization needs, involve stakeholders in envisioning the future, and then seek candidates who match that vision. North Carolina nonprofits have a pool of experienced interim leaders – sometimes retired executives or consultants – who can keep the ship steady for a few months. The North Carolina Center for Nonprofits and other state associations can be a resource for finding interim directors or transition management services. One thing to clarify is whether your interim will be considered for the permanent role or not (there are pros and cons either way, but clarity helps avoid confusion).
In summary, don’t be afraid to use an interim; it’s a common best practice that ultimately supports a better permanent hire. As one saying goes, “hire slow, fire fast” – take the time you need to hire slow and smart, even if it means a short-term leadership bridge.
Q: We have an internal candidate interested in the ED role. Should we still do a full search?
A: Yes, it’s usually beneficial to conduct a full (or at least formal) search even if a strong internal candidate exists. Promoting from within can be wonderful – the internal person knows the organization and can be a seamless cultural fit. However, going through a search process ensures that the board fulfills its due diligence and finds the best leader for the future, not just the heir-apparent by default. A structured search that includes the internal candidate among other applicants lends credibility to the process – it shows fairness and transparency to your stakeholders and staff. Often, internal candidates appreciate the rigor too; if they are ultimately selected, they know they earned it on merit. That said, be mindful of the internal dynamics. Treat the internal candidate with respect and confidentiality, just as you would externals. If they don’t get the job, you’ll want to handle that outcome with care to retain their goodwill (or help with a graceful exit if needed). In North Carolina, there have been instances (see CapDev’s case studies) where an internal interim was a finalist and got the permanent position after a full search. In other cases, an internal person was strong but an external candidate brought something new that the board decided was more aligned with the future. You won’t know unless you look. So our advice: encourage the internal candidate to throw their hat in the ring, conduct a fair search, and let the process reveal who rises to the top.
Q: What does it typically cost to use a retained executive search firm, and is it really worth it for our nonprofit?
A: The cost of a retained search firm for a nonprofit executive hire often ranges from 20% to 30% of the position’s first-year salary (this is a common model), though some firms may charge flat fees or offer scaled-down services at lower cost. For example, if you’re hiring a CEO at a $120,000 salary, the search fee might be in the ballpark of $24,000–$36,000. That’s no small sum for a nonprofit, so it’s prudent to ask if the value justifies the expense. In many cases, yes, it is worth it – especially for critical leadership roles – because of what’s at stake.
Consider the cost of getting the hire wrong: a bad executive hire who leaves or underperforms can cost an organization tens of thousands of dollars (in rehiring costs, lost donations, staff turnover, etc.) and, more importantly, lost momentum on mission.
A skilled search firm increases the likelihood of a great hire, which can yield significant returns like increased fundraising, stronger programs, and stability. Also factor in the time your board or staff would spend to do it themselves – time which has an opportunity cost. Firms handle the heavy lifting, and that can be worth the fee in itself, freeing you to focus on your organization’s work. If budget is a concern, you might negotiate or look for firms (or individual consultants) that offer flexible arrangements – maybe a slightly lower fee in exchange for your team doing more legwork, or a payment schedule that spreads the cost. Some nonprofits secure a special grant from a foundation to cover search fees, framing it as a capacity-building investment. In short, while writing that check can hurt, investing in leadership is one of the highest-leverage investments a nonprofit can make. Many organizations in North Carolina have found that partnering with a firm like CapDev – with its track record (since 1984) of successful placements – ultimately pays for itself in the quality and longevity of the hire.
Q: How do we make sure the new executive director will succeed once hired?
A: Hiring the right person is just the beginning. To set your new executive (and your organization) up for success, you need a solid onboarding and support plan. First, ensure there’s a thorough orientation: introduce them to key stakeholders (major donors, community partners, government officials, etc. as relevant), transfer institutional knowledge (have them sit down with the outgoing ED if possible, and with long-tenured staff), and provide all the context about finances, programs, and culture that an outsider wouldn’t know on day one. Many boards assign a transition committee or a board buddy to check in with the new leader regularly in the first 6–12 months. This can help the ED navigate any political landmines and prioritize where to focus early on. Remember that even a highly experienced executive will benefit from clear goals and feedback. Work with the new ED to set 3-5 key objectives for their first year that the board and ED agree on – this creates a shared understanding of success and can be a basis for performance evaluations down the line. Also, be mindful of not overloading the new hire. It’s tempting to give them a giant to-do list (“fix fundraising, hire 5 people, develop a strategic plan, and renovate the building – all in year one!”). Prioritize together, and maybe hold off on less critical projects until they have their bearings. Lastly, foster a supportive culture: encourage staff and board openness, make sure the new ED feels they have permission to ask “why do we do this?” without ruffling feathers, and celebrate early wins to build confidence. If challenges arise, the board chair should address them swiftly and constructively with the ED – communication is key. When CapDev places a candidate, their comprehensive searches often include a one-year guarantee, which underscores the philosophy that the hire isn’t truly successful until they’ve been in the role and thriving for some time. Your mission will be best served by an executive director who feels welcomed, empowered, and guided in that critical first year, so put as much thought into onboarding as you did into the search itself.
Ready to Launch Your Executive Search?
Ready to launch your executive search or strengthen your nonprofit leadership strategy? CapDev offers experienced support and proven methods to help nonprofits across North Carolina and South Carolina thrive. Discover how CapDev’s experienced team can guide you through crucial leadership transitions, tap into deep expertise for nonprofit consulting and executive search, or learn about the broad range of nonprofit organizations CapDev has successfully served. If you’re preparing for a leadership change or looking for guidance in sourcing your next executive, reach out directly to discuss how CapDev can help your nonprofit achieve mission success.
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