Press Release
Georgia Nonprofits Approach Unprecedented Shift in Leadership
Atlanta, GA - 4/28/2005 -
Nearly half of Georgia’s nonprofit organizations will lose their top executives in the next five years, according to a new report by the Georgia Center for Nonprofits and the Annie E. Casey Foundation. The Future of Georgia’s Nonprofit Leadership shows that 42 percent of Georgia’s nonprofit leaders will soon either retire or move on to other positions, and has indications for how nonprofits manage the transition of leadership from one generation to the next.
"Under the best circumstances, replacing an executive director is both critical to the longterm success of the organization and very confusing and time-consuming for a board of directors," she says.
"By understanding and proactively incorporating some of the key findings and recommendations of this study, and with proper planning, organizations can successfully transfer leadership roles. And they can simultaneously change direction, maintain momentum, and become more effective."
Key Findings:
- A majority of Georgia’s nonprofit organizations have had stable leadership over the past 10 years with 73 percent having had one or two executives.
- Organizations in Georgia are likely to face an increase in the number of executive transitions in the next several years--11 percent during the next two years, and 42 percent in the next five years.
- Eleven percent of organizations are likely to experience a change in leadership in the next two years. Further, 58 percent of the current executives are over 50 years old, and labor force participation rates decline at 62 years old. This implies a growing number of transitions as these executives begin to retire.
- Thirteen percent of these executives indicated they were founders of their organizations.
- In terms of their careers, a majority of Georgia executives (51 percent) are in executive positions for the first time. Many have worked at some point for for-profit companies, and 58 percent have over 10 years’ experience in the nonprofit sector.
- When they are ready to leave their current positions, 12 percent plan to take another executive job and 44 percent plan to retire or semi-retire.
- Some nonprofit organizations in Georgia have some middle management, which may serve as a training ground for executives. Over 30 percent of the organizations have deputy directors, and a majority have program directors.
The report is available in its entirety online at http://www.gcn.org (click on ‘Services,’ then ‘Research,’ then 'Georgia Reports').
About the Georgia Center for Nonprofits
The Georgia Center for Nonprofits designs and conducts survey research to gather data on the state’s nonprofit sector in an effort to determine ways it can best serve the nonprofit community. Reporting on sector trends, leadership development and management strategies, the Center has taken a leadership role in the advancement of statewide nonprofit research through a number of initiatives, including The Future of Georgia’s Nonprofit Leadership, Georgia Nonprofit Industry Report, Georgia Nonprofit Employment Report, Georgia Nonprofits: Spreading the News, Georgia Nonprofit Wage & Benefit Report, and Being Accountable: Ethical Practices of Georgia Nonprofits.
An all-in-one resource for and about Georgia’s nonprofit sector, the Georgia Center for Nonprofits works to serve, strengthen and support nonprofit, charitable organizations statewide. The Center provides nonprofits with the resources and tools they need to be most effective, promotes partnership between the nonprofit sector and the business and government sectors, and speaks on behalf of nonprofits to enhance policy-makers’ and the public’s understanding and support of charitable work.
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Media Contact
Nancy Longacre
678-916-30303
nl@gcn.org