Understanding of Leadership Capacity on Nonprofit Operational Efficiency: A cross sectional survey of RI Executive Directors

Nonprofit organizations are the gateways to the community. Federal and state agencies rely on their nonprofit partners for a great deal of their program implementation, ranging from data collection to HIV/AIDS education to emergency preparedness. Since government agencies invest millions of dollars every year through grants and contracts, it is vitally important that the nonprofits are able to operate at highest efficiency.

Organizational success depends upon skilled leadership. Unfortunately due to budget concerns, many small and medium sized nonprofits hire promising yet relatively inexperienced candidates as Executive Directors (EDs). There is concern that a considerable proportion of these EDs have serious capacity problems, such as finance, personnel management, and board development. While the ED is struggling to learn the necessary skills, the organization cannot operate at its highest efficiency. Sometimes EDs are able to learn quickly enough to make a successful transition. All too often, EDs become worn out and leave after only a few years. Then the organization must take attention away from its programs to go through another search and hiring process. Many small nonprofits go through a revolving door of EDs every two to three years.

A cross-sectional descriptive survey of Executive Directors of nonprofit organizations in Rhode Island was conducted in 2010. This presentation will discuss the profile of Executive Director capacity, describe which types of EDs and organizations are in need of support, and assessed what specific supports/training EDs' need and their interest. The survey focused particular attention on health and human service nonprofits.