A lack of succession planning could leave smaller charities facing a “crisis” as senior leaders step down amid today’s highly pressurised operating environment, a consultancy has warned.
Cranfield Trust’s recently published five-year review of assessment data found that the question it asked its more than 600 charity partners which consistently returned the lowest score was around succession planning for key roles.
At first point of contact with the trust, which helps charities develop their organisational sustainability and impact, only around 35% of partners expressed confidence in their succession planning.
Even after completing project work with the consultancy, less than half of charities on average over the five years described their succession planning as adequate.
The Cranfield Trust’s report describes the picture as “concerning”, in the context of the increasing struggle for survival many smaller organisations face.
Real burnout fears
Speaking to Civil Society, the trust’s chief executive Amanda Tincknell – who is stepping down this autumn – said she was not surprised by the finding but that it had come out “really starkly” in the data.
“There are lots of reasons, but we're particularly worried because of the pressures on chief executives at the moment,” said Tincknell, who added that 80% of the consultancy’s clients had annual income below £1m and 60% below £500,000.
“There is real concern around burnout, and so we're thinking about how we can support the next generation to be ready for succession.
“Because at the moment, not many organisations have the opportunity to invest in their development.”
Tincknell added that previous research by the trust had highlighted skills shortfalls around charities’ organisation, strategy, and financial management – which could be acutely sharpened if senior figures moved on.
Prior to working with the trust, only 38% of its 2024 partners had an up-to-date business plan, a 10% fall from pre-pandemic levels.
“I think the chaotic operating environment is affecting people's ability to plan with confidence,” she said. “And actually, at a time like this, you need to have a plan and some good forecasts – more than ever before.”
‘If you can’t invest money, invest time’
Tincknell acknowledged that, given the pressures organisations face, finding solutions is much harder than diagnosing problems.
But she urged small charities to review the skill sets in their team and assess what kind of leadership and management skills they may need – and to make use of available development resources, some of which can be accessed for free.
“If you can’t invest money, at least invest some time for your teams in development,” she said. “We're not always helping people to develop skills that they might need if they want to progress in future – it is a hard ask, but it's a long-term investment.”
Tincknell added that organisations – including hers – needed to consider how to make the case to funders around investing in technology and digital skills.
This was another area of concern from the Cranfield Trust research, with only half of charity partners having a strategy in this area even after working with the trust.
Board diversity gap
Another area where organisations working with the trust scored themselves consistently low was board diversity, with only 53% rating their boards as diverse despite more than 75% having equity, diversity and inclusion policies and recent values statements.
“It is highly possible charities have policies in this area which have not yet translated to implementation at board level,” the report reads.
Other areas where more than 75% of charities expressed confidence were around their clarity of purpose, financial auditing and governance, including alignment between CEOs and boards.
“It gives me hope that they are great people doing amazing things, taking a forward-looking approach to sustain their services, and looking for all the support they can to do that,” said Tincknell. “It’s a privilege to work with them.”
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