Here’s something most nonprofit leaders don’t want to admit: 66% of nonprofits don’t have a succession plan.

Let that sink in for a moment.

Two-thirds of organizations are one unexpected resignation away from chaos.

And succession planning? That’s just one piece of the sustainability puzzle.

We’ve spent years working with nonprofit executives and board members at The Batten Group, and we’ve seen firsthand what separates organizations that scale their impact from those that struggle to keep the lights on.

The difference isn’t luck. It’s not about having wealthy donors in your network (though that doesn’t hurt). It’s about mastering seven fundamental drivers that create organizational resilience.

Let us break them down for you.

We’re going to be blunt here.

No money = No mission.

It’s that simple.

You can have the most passionate team in the world, but passion doesn’t pay rent. It doesn’t fund programs. And it definitely doesn’t sustain your organization through economic downturns.

Here’s what high-performing nonprofits do differently: They treat fundraising like the critical function it is. They put their best people on it, not whoever happens to be available.

But here’s where most organizations get it wrong.

The Fundraising Portfolio Mistake That’s Killing Your Sustainability

Ever heard the phrase “don’t put all your eggs in one basket”?

It applies to fundraising too.

If your annual gala generates 70% of your revenue, you’re in trouble. If one major donor accounts for half your budget, you’re vulnerable.

Diversification isn’t optional. It’s survival.

Think of your fundraising like an investment portfolio:

• Individual donors (small, mid-level, and major gifts)
• Corporate partnerships
• Foundation grants
• Earned revenue streams
• Planned giving
• Events (but not too many)

When one stream dries up—and eventually, one will—you’ve got others flowing.

Quick test: Stop five random employees in your hallway and ask them what your nonprofit does.

If you get five different answers, you’ve got a problem.

Mission clarity isn’t about having a beautiful statement on your website. It’s about creating alignment so deep that everyone—from your receptionist to your CEO—can articulate your purpose in one compelling sentence.

Why does this matter?

Because mission drift is real. It’s insidious. And it destroys organizations from the inside out.

When your mission is crystal clear:

• Volunteers know exactly what impact they’re creating
• Donors understand precisely what they’re funding
• Your team makes faster, better decisions
• You can confidently say “no” to opportunities that don’t fit

At The Batten Group, we’ve seen organizations transform when they finally nail their mission clarity. Decision-making speeds up. Team morale improves. Fundraising gets easier.

Everything flows from clarity.

Let us tell you something we’ve learned after decades in this space: Healthy teams can survive anything.

Economic recession? They adapt.

Leadership transition? They step up.

Programmatic pivot? They innovate.

But unhealthy teams? They crumble under pressure.

The Character Trait That Predicts Team Success

Here’s what separates good teams from great ones: adaptability.

High-character team members don’t view change as a threat. They see it as opportunity. When challenges arise (and they always do), they lean in rather than pull back.

But here’s the kicker—you can’t wait until you need them to start building your bench.

Start developing next-generation leaders now. Cross-train consistently. Create pathways for growth. Because the worst time to discover you’re out of leadership capacity is when you desperately need it.

Think of it like this: Would you rather build your emergency fund before or after the emergency?

Confession time: We’ve sat through painful board meetings where directors show up late, zone out during presentations, and contribute nothing beyond their obligatory attendance.

That’s not a board. That’s a liability.

Great boards are game-changers. They’re the difference between good organizations and exceptional ones.

Here’s what an engaged board looks like:

• They give financially (yes, 100% board giving should be the standard)
• They network strategically to bring in new donors
• They show up on time, every time, prepared
• They ask hard questions that make leadership better
• They understand governance and take fiduciary responsibility seriously

But there’s something deeper here.

The Board Conversation Most Nonprofits Avoid

The best boards don’t just rubber-stamp management decisions. They think critically about the future.

They ask questions like:

• “How could we be 10x more effective?”
• “What are we doing today that we should stop doing?”
• “Where are our blind spots?”
• “Are we measuring the right things?”

And here’s the part most organizations miss: Your board needs clear financial policies.

How much goes to programming versus overhead? What’s your investment strategy? How do you handle grant management? These shouldn’t be figured out on the fly.

Remember that statistic we mentioned earlier? Only 34% of nonprofits have a succession plan.

That means 66% of organizations are hoping their executive director never leaves, gets sick, or gets hit by a bus.

Hope is not a strategy.

We get it. Succession planning feels morbid. It’s uncomfortable. Your current ED is doing great, so why rock the boat?

Because transitions happen. Always. The only question is whether you’ll be ready.

The Three-Part Succession Planning Framework That Works

Part 1: Documentation

Right now—today—your board should have:

• A clear timeline for filling the ED role if it becomes vacant
• A compelling description of your organization and the role
• A list of critical responsibilities only the ED handles

Part 2: Cross-Training

Don’t wait until someone announces they’re leaving to start cross-training. Build it into your culture. Every year, key team members should be learning critical organizational functions beyond their role.

Part 3: Onboarding

Even experienced leaders need support when they’re new. The quality of your onboarding process determines how quickly a new ED (or any hire) can create impact.

At The Batten Group, we help nonprofits build succession plans all the time. The organizations that do this work sleep better at night.

The Stanford Social Innovation Review nailed it: “Organizations that build robust infrastructure are more likely to succeed.”

Not exactly groundbreaking news, right?

Yet here we are. Nonprofit after nonprofit starving themselves of the systems, technology, and processes they need to scale.

Why? Because everyone’s obsessed with overhead percentages.

The Overhead Myth That’s Holding You Back

Yes, donors care about efficiency. They should.

But you know what else they care about? Results.

Nobody wants to fund a nonprofit that’s failing to achieve its mission because it’s too cheap to invest in the infrastructure needed to succeed.

Think about it this way: Would you rather give to an organization that spends 15% on overhead and changes 1,000 lives, or one that spends 8% on overhead and changes 100 lives?

The math is simple. Impact matters more than ratios.

You need:

• Information technology systems that work
• Financial systems that provide real-time insights
• Skills training that keeps your team sharp
• Fundraising processes that are repeatable and scalable
• Administrative support that frees your program staff to do what they do best

When opportunities come along—and they will—you want to meet them with excitement, not panic about whether you have the capacity to execute.

Here’s a framework we want you to internalize: There are good costs and bad costs in nonprofit management.

Good costs scale with impact. They’re directly tied to programming and fundraising. When you serve more people, these costs go up proportionally. That’s healthy.

Bad costs rise without any connection to mission delivery. They’re the expenses that creep up year after year regardless of how many people you’re serving.

The Balance Sheet Wake-Up Call

Most nonprofit leaders can tell you about their budget. Fewer can explain their balance sheet.

That’s a problem.

You need to understand:

• How you compare to peer organizations (not just your past performance)
• Where your costs are concentrated
• What your liquidity looks like
• Whether you’re over-invested in non-mission-critical areas

Here’s a scenario we see too often: An organization holds too much real estate or carries too much debt. Then a financial crisis hits the philanthropy sector. Donations drop. And suddenly, they’re forced to lay off their best talent—the very people driving mission success.

That’s not sustainability. That’s a time bomb.

One more thing: Don’t treat your investment portfolio like an ATM. If you’re consistently drawing from investments multiple years in a row while costs keep rising, you’re not trending toward sustainability. You’re sliding toward crisis.

Look, we’re not going to sugarcoat this.

Building a sustainable nonprofit is hard. It requires attention to multiple moving parts simultaneously. Drop the ball on any one of these seven drivers, and you’ve introduced risk into your organization.

But here’s the good news: Every single one of these drivers is within your control.

You can improve your fundraising portfolio starting today. You can clarify your mission this week. You can begin developing your team and engaging your board. You can start succession planning, invest in infrastructure, and get serious about financial oversight.

At The Batten Group, we’ve spent decades helping nonprofit leaders and boards master these drivers. We’ve seen struggling organizations transform into thriving ones. We’ve watched good nonprofits become exceptional.

The organizations that get this right? They’re the ones that are still around in 10 years, serving more people than ever.

The ones that ignore these fundamentals? They become cautionary tales.

Which one will you be?

Ready to strengthen your organization’s sustainability? At The Batten Group, we bring decades of perspective to serving nonprofit and philanthropic organizations. We understand the critical relationship between talent and organizational dynamics—and how to optimize both.

We believe the right leader can transform an entire organization.

We’re a national nonprofit executive search firm with more than 75 years of combined experience placing CEOs, development officers, and senior leaders across nonprofits, healthcare, higher education, and mission-based organizations.

Our work goes beyond résumés. We identify mission-driven, transformational leaders who align with your culture, inspire your teams, and drive long-term impact.

Learn more at thebattengroup.com, follow us on LinkedIn and X, or subscribe to our newsletter for leadership insights and nonprofit career opportunities.

The Batten Group: where mission meets leadership.