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The Big Idea
An interim Executive Director is an experienced nonprofit leader hired for a defined period, often during the search for a permanent ED. The interim leads operations, keeps the organization moving forward, supports staff and the Board, maintains donor and funder confidence, and prepares the organization for a successful permanent leadership transition.
Why More Nonprofits Are Using Interim Executive Directors
The concept of an Interim Executive Director (ED) isn’t well-known among nonprofit organizations…yet. But it’s becoming more mainstream and for many good business reasons.
On average, it takes a Board of Directors many months to recruit a new Executive Director. By the time they are onboarded and contributing, a year may have passed since the departure of the prior nonprofit leader.
It takes a Board of Directors months to recruit a new Executive Director. By the time they are onboarded and contributing, a year may have passed since the departure of the prior nonprofit leader.
— Michelle Barnes, Interim Executive Director & RED Team Leader
While nonprofit board members may step up to “mind the gap,” the truth is that stakeholders — employees, partners, and funders — can lose confidence in your organization during this leadership transition and key employees may leave.
Organizing payroll, developing a budget and/or managing human resources may keep the lights on, but without someone filling the executive director role during the transition period, your organization can be harmed and stymied while the Board is focused on the executive search for a new ED.
How Interim Leadership Helps
5 Times Nonprofits Should Bring in an Interim Executive Director
- Executive Director unexpectedly leaves
Maintains organizational stability
- Board search will take months
Keeps momentum while recruiting
- Things are not running optimally
Gets the right foundation and structure in place
- Staff or donor confidence is at risk
Builds trust and continuity
- Not sure what needs to change
Assesses the org and prepares the organization for long-term success
What is an Interim Executive Director?
An interim Executive Director, sometimes called an interim CEO, is not a consultant, but rather a seasoned business executive who can provide hands-on, impactful leadership during an executive transition. The interim nonprofit Executive Director (ED) works for the Board of Directors and runs the organization for a specific period of time, usually 6 to 15 months.
Quite often, the interim will be more experienced than the new leader who will be hired to fill the role on an ongoing basis. Most importantly, the interim shares those years of experience to help the Board chair assess the current situation.
The result is a clear and shared vision of what the organization needs in its next permanent leader.
Why Leadership Gaps Can Hurt Nonprofits
A prolonged leadership vacancy can create uncertainty throughout a nonprofit and distract the organization from its mission.
Without an experienced executive providing clear direction, the effects can quickly spread across every important stakeholder group:
- Employee confidence can decline. Staff may feel uncertain about priorities, decision-making, and job security. If the gap continues, valued employees may disengage or leave.
- Donor confidence can weaken. Individual donors want to know that the organization is stable, well managed, and capable of using their contributions effectively.
- Funders may become cautious. Foundations, government agencies, and institutional funders may delay commitments or question whether the nonprofit can fulfill its obligations.
- Community partners may hesitate. Partner organizations need reliable communication and consistent leadership to maintain programs, collaborations, and shared commitments.
- The burden on the Board can grow. Board members may find themselves handling operational decisions for which they lack the time, organizational knowledge, or executive experience, all while managing the search for a permanent leader.
Why Hire an Interim ED?
A nonprofit interim Executive Director gives stakeholders a visible, experienced leader they can rely on. That stability protects organizational momentum and allows the Board to conduct a thoughtful search without rushing into a permanent hire.
Your interim ED may not be an expert in your specific line of business or program focus. They will rely on the staff members already working with you for that expertise. Instead, the interim ED will focus on executive leadership transition, keeping the revenue coming in, and making sure that the organization moves forward without a hitch.
In my experience as an interim ED, helping the Board’s executive committee prepare for the next phase of the organization is often part of the brief. The job description also may include staying on as interim management or even a part-time ED for a time to mentor the new full-time leader.
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The Complete Guide to Interim Management
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The Complete Guide to Interim Management
Everything owners, investors, and boards need to know about deploying interim executives — when to use them, how to vet them, what to pay, and how to get results fast.
What Happens After Your Executive Director Leaves?
An Executive Director’s departure creates both immediate responsibilities and longer-term decisions. Following a clear transition process helps the Board protect the organization today while preparing it for the right permanent leader.
1. Stabilize the Organization
The first priority is continuity. Staff members need to know who is making decisions, donors and funders need reassurance, and essential programs, financial responsibilities, and external commitments must continue without disruption. Clear, timely communication helps prevent uncertainty from becoming a larger organizational problem.
2. Establish Interim Leadership
The Board must determine who will lead daily operations and what authority that person will have. Appointing an experienced interim Executive Director gives the organization a dedicated leader who can manage operations, support employees, communicate with stakeholders, and address issues that cannot wait for the permanent search.
3. Assess the Organization’s Current Needs
A leadership transition is an opportunity to take an objective look at the nonprofit’s operations, finances, staff structure, culture, strategy, and stakeholder relationships. This assessment can reveal immediate risks as well as opportunities to strengthen the organization before its next chapter.
4. Define the Permanent Executive Director Profile
The Board should avoid automatically recreating the previous leader’s job description. With insight from the organizational assessment, the Board can identify the experience, leadership style, capabilities, and priorities the nonprofit will need from its next permanent Executive Director.
5. Conduct a Thoughtful Search
With stable interim leadership in place, the Board can conduct a deliberate search rather than rushing to fill the vacancy. The interim Executive Director keeps the organization moving while the Board evaluates candidates against a clearly defined set of needs.
6. Prepare for the Leadership Handoff
Once the permanent Executive Director is selected, the interim helps create an orderly transition. That may include documenting key decisions, briefing the incoming leader, introducing important stakeholders, transferring institutional knowledge, and clarifying immediate priorities.
What Does an Interim Executive Director Do?
A successful transition does more than fill an empty position. It gives the incoming Executive Director a stable organization, a realistic understanding of its needs, and a stronger foundation from which to lead.
An interim Executive Director provides active leadership throughout the transition. Depending on the organization’s needs, the interim leader:
- Prepares a successful leadership transition by strengthening operations, documenting key information, and setting the incoming Executive Director up for success.
- Leads daily operations and ensures that essential programs, services, and administrative functions continue without disruption.
- Supports the Board with timely information, executive guidance, and clear recommendations.
- Maintains donor confidence through consistent communication and visible organizational stability.
- Oversees staff by clarifying priorities, supporting managers, and addressing issues that cannot wait for the permanent hire.
- Keeps strategic initiatives moving so important goals and projects do not stall during the search.
- Assists with fundraising by maintaining donor relationships, supporting campaigns, and helping pursue critical revenue opportunities.
- Helps define the permanent Executive Director profile by assessing the organization’s current needs, challenges, culture, and future direction.
Should an Interim Executive Director Become the Permanent Executive Director?
Some people may apply to be the interim Executive Director as a way of installing themselves as the permanent ED. I can assure you that some Board members are guilty of this sleight of hand!
Nothing is more awkward than having to “fire” a Board member who volunteers to be the interim and then won’t give up the seat.
How do you guard against that? By choosing a professional interim ED and signing a contract so the assignment is, by definition, temporary.
How Do You Hire an Interim ED?
Just as you would for any interim executive, write a job outline that spells out the exact expectations for the assignment, including the decision-making authority, the accountabilities, and the length of the assignment.
An interim will often have more focused responsibilities than the permanent leader. With a limited tenure, be very clear on expectations.
Consider contracting with a professional firm that matches organizations with an experienced and qualified interim executive director, such as InterimExecs, which can have an executive on the ground in a matter of days.
Plus, the contract you make is with the firm, which then contracts with the executive leader. The contract includes a standard 30-day cancellation clause, so you can scale up or scale back services as needed.
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Need an Interim Executive Director?
Leadership transitions don’t have to slow your mission. An experienced Interim Executive Director can provide stability, support your Board, and keep your organization moving forward while you recruit the right permanent leader.
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Frequently Asked Questions
A nonprofit should consider an interim Executive Director any time there is a leadership gap. That can happen when the ED resigns, retires, becomes unexpectedly unavailable, or is fired and there is no solid succession plan in place. It can take many months to identify and hire a new permanent ED, but InterimExecs can identify the right interim leader in as little as 48 hours. An experienced, vetted interim ED will keep the organization moving forward, assure funders, employees, and other stakeholders, and help the Board determine what the organization requires from its next leader.
An interim Executive Director generally serves for a defined period that covers the search, selection, and onboarding of the new permanent leader. Assignments often last from six to 15 months, although the timing depends on the organization’s condition, the scope of the interim’s work, and the length of the permanent Executive Director search. In the event the interim ED doesn’t work out, contracts with InterimExecs can be ended by either party with 30 days’ notice.
An acting Executive Director is usually a current employee or Board member temporarily assigned to maintain continuity. An interim Executive Director is typically an outside executive with significant leadership and transition experience. In addition to running the organization, a professional interim can objectively assess its needs, address underlying issues, and prepare the nonprofit for its next permanent leader. Choosing a Board member to be the acting ED can seem like the easy answer. But if the Board member isn’t an effective leader. it puts the Board in the uncomfortable position of having to fire one of its own.
The interim Executive Director reports to the Board of Directors, usually through the Board chair or a designated executive or transition committee. Before the assignment begins, the Board should clearly define reporting relationships, decision-making authority, priorities, responsibilities, and measures of success.
The cost depends on the organization’s size, the complexity of the assignment, the executive’s time commitment, and the experience required. Some interim Executive Directors work full time, while others serve on a part-time or fractional basis. The Board should evaluate the investment against the cost of stalled fundraising, employee turnover, delayed initiatives, stakeholder uncertainty, and an unsuccessful permanent hire. And remember that an interim ED will not get any of the extras paid to a permanent hire — no paid vacation, health insurance, or golden parachute required.
