Interim Leaders Play Critical Role in Nonprofit Stability, Data Shows
A report on the state of the Interim Leadership Profession for the nonprofit sector was released, reflecting a field whose identity is gaining clarity and cohesion, becoming increasingly recognized for its distinct role in nonprofit leadership transitions.
The "Interim Leadership in the Nonprofit Sector" report, commissioned by Third Sector Company and released at the organization's "National Nonprofit Interim Executives Forum," highlights the critical role interim leaders play in stabilizing operations, guiding organizations through transitions, and preparing them for long-term success. The report was commissioned to further validate the emergence of a new management science and a leadership profession while outlining the impacts of strategic transitional leadership on nonprofit stability, funder confidence, and long-term mission effectiveness.
"Interim leaders are change experts who play a crucial role in helping nonprofits navigate transitions," said Nancy Bacon, the nonprofit educator and strategist who authored the report. "This report captures the voices of over 100 practitioners from the United States, and Canada and provides actionable recommendations to strengthen the profession and support organizations to understand the value of interim leadership during times of change."
In their role, interim leaders oversee operations and staff, finances and budget, board governance, communication, culture and human resources, create systems and set priorities. It's not unusual for their work to help heal an organization that may be suffering from the loss of a founder, a leader who was forced out, or a previous leader who failed. The study revealed that interim nonprofit leaders generally serve organizations for an average of 10 months, with typical engagements lasting six to 14 months.
"Every day we hear of interim leaders finding roles in public and private organizations, and nonprofits, that impact community life," said Third Sector Company President and CEO Jeffrey Wilcox. "The number of people who have held these positions and have experienced what it is like to be an interim leader has led to a body of shared knowledge, a set of principles, and community of trained people now able to offer a methodical management process that facilitates intentional evolution to prepare organizations to hire a successful long-term leader."
Dr. Sara Hudson, Interim CEO and Editor-in-Chief of Nonprofit Quarterly, was a special guest commentator at the Forum, joined by experts David Harris from Interim Executive Solutions, Katie Weeks from Armstrong McGuire, Jan Cohen from Bay Area Interims, and Joan Brown, Chief Operating Officer of Third Sector Company.
"With the high rates of attrition taking place in the nonprofit sector, this is no longer a discussion about making temps available," Brown said. "Skilled interims facilitate processes that result in tough decisions that help organizations make the right long-term hiring decisions that move their missions forward."
The report highlighted four opportunities to strengthen the profession:
- Change the narrative about interim leadership among nonprofits and their boards to abolish the idea of interims as temps in favor of skilled bridging professionals.
- Position interim leadership as strategic pro-active succession solutions in mergers, terminations, and new position creation.
- Strengthen the ecosystem that supports and advances successful interim leaders in top community positions.
- Center equity and cultural awareness by recognizing organizational histories, identities and community dynamics that influence unnecessary leadership attrition.
The report highlighted the growing numbers of regional networks, training programs, and professional placement firms that are elevating awareness of the profession and appreciation of the unique leadership role.
Participants called for the establishment of consistent definitions, standards, and practices related to professional interim leadership. For the first time, the research process crowdsourced a comprehensive definition of this burgeoning profession:
"An interim leader is a temporary, mission-centered executive who enters an organization at a pivotal moment to stabilize operations, guide people through change, and prepare the conditions for the next leader to thrive. As a knowledgeable outsider with 'fresh eyes,' they bridge the space between a storied past and a sustainable future—managing today's needs while advancing longer-term priorities. Their work is not about holding space for themselves, but about building clarity, capacity, and confidence for what comes next."
Access the "Interim Leadership in the Nonprofit Sector" report here.
The preceding press release was provided by a company unaffiliated with NonProfit PRO. The views expressed within may not directly reflect the thoughts or opinions of the staff of NonProfit PRO.
