Nonprofit Founder's Syndrome: Signs & Solutions
Updated: 5 days ago
Break out your support candy and join us for a deep dive into the patterns that plague small, founder-led organizations (and what to do about it!). Discover key warning signs, board governance tips, and actionable steps for a smooth executive leadership transition.
Hot Take: Nonprofits Don’t Belong to Their Founders
Before we kick that hornet's nest, let’s set the stage:
Founders are a special type of nonprofit executive—not just a leader and fundraiser with a heart for the mission, but a visionary who created something to serve a charitable purpose bigger than themselves. Many of them built an entire organization with sweat equity and probably more energy, time, and their own money than they could really afford. Maybe they started out on their dining room table or in the cramped guest room in their parents’ house. They turned down more lucrative (and less risky) career paths, and bartered and borrowed to make their dream work.
Their unpaid labor and vision for the work are the only reasons many beloved nonprofits exist today.
Founders are critical to the public sector's development and success. Their unpaid labor and vision for the work are the only reasons many beloved nonprofits exist today, from the years of sacrifice to the network of their personal friends/family/donors who helped make it possible. And they aren’t exactly rolling in riches for their hard work; many of them didn’t (and still don’t!) have health benefits, employer retirement programs, or even an annual cost-of-living increase, if they make a reasonable salary at all. When it is finally time to recruit their successor, their board may be shocked to find that the salary they’ve been paying them has to be a lot higher to be competitive in the current market.
As a public charity, nonprofits exist to carry out their mission, and it’s a leader’s responsibility to make choices that best serve the organization—and by extension, the public. Here’s where the tough part hits: eventually, their nonprofit will need to grow beyond them.
Here’s where the tough part hits: eventually, their nonprofit will need to grow beyond them.
What Is Founder's Syndrome in Nonprofits?
Creating a nonprofit that can not only weather but actually thrive through growth and eventual leadership change can be one of the best ways to secure their legacy and ensure all the sacrifice was truly worth it. It isn’t easy to face, but we aren’t here to baby anyone (or tear them down). We’re here to remind everyone that nonprofits serve a public, charitable mission, not a personal one—and that if executive roles and transitions are handled with care, that mission can carry on.
Small, founder-led nonprofits can fall into a few patterns that can threaten an organization, and understandably so! It’s so common that there’s a whole term and study around it: Founder’s Syndrome. Though it’s not limited to nonprofits, it can be particularly disturbing in nonprofits, which are founded from the start to serve a greater, charitable purpose rather than a personal one. Whether an organization is officially diagnosed with the Syndrome or not, separating an organization's identity from its founder can be a tough task for growing organizations. Below are just a few of the many issues we see.
7 Challenges: Nonprofit Founder's Syndrome
Conflating personal and business expenses
Because when they were starting out, these were sometimes the same!
Assigning personal tasks to staff
Because when you finally get help, it can be hard to figure out how to apply it.
Using company space for personal storage
Because for a long time they used their own home for work storage.
Not communicating where they are, what they’re doing, or how they're performing
After all, there used to be no one else working with them.
Filling the board with personal friends who struggle to maintain boundaries and serve the org first
Because in the beginning, the Founder’s personal network is the same as the organization’s network.
Not introducing the staff or future leadership to their support network
Because the Founder may not realize that when they leave, the organization’s key relationships will go with them.
And lastly, the big one: Resistance to succession planning
Because it’s been their calling, because it’s been so much of their life, because they aren’t ready, because they don't think the organization can succeed without them, and because they might not know what comes next.
So, what can be done?
Nonprofit Management: The Board's Role
The board of directors has responsibilities here. First, it’s the organization’s job to take care of founders, and they deserve the same level of care and support that any staff member does, including:
Overseeing an annual evaluation, benefits, and salary. This includes considering career advancement, professional development, and retirement planning!
Succession planning with plenty of lead time that allows for authentic and appropriate recognition, relationship transitions, and care.
Not being overly reliant on the executive for tasks that qualified staff can easily carry out.
Working to continually grow the organization’s network beyond its founding.
Not allowing board-level responsibilities to fall to (or defer to) the executive.
Recusing themselves when they struggle to put the organization's mission and sustainability over their personal perspective.
Nonprofit Founders can make a tough journey smoother, too, by:
Helping their organization build institutional knowledge by bringing trusted leaders/colleagues into decision-making processes.
Planning for a thoughtful succession by offering their current staff leadership training and opportunities.
Sharing and then transitioning relationships with key partners and donors.
Working together with new leadership by answering questions and making introductions, then gracefully allowing them to take the reins.
Regularly comparing benefits to those of their staff and ensuring those benefits are in the best interest of the org (checking for some of those conflicts of interest/separations of personal vs. professional we mentioned earlier).
Outlining what they do and how they do it and offering perspective to their board on any initiatives that are not yet fully realized to aid future hiring efforts.
The main takeaway is this:
If you love an organization and want its legacy to thrive, allow its founder to serve, and then release. The next director may have a different vision or leadership style, and that’s ok. In fact, it’s often necessary for the organization’s survival.
For founders who feel called in by this, we encourage you to schedule a chat with your board and consider how you can start thoughtfully making your plans. For board members who just learned about Nonprofit Founder’s Syndrome, we encourage you to share this blog with another board member and start talking about what’s next for your org.
Whether it’s now, next year, or next decade, a transition is coming, and both board members and executives can meet it well.
Dig Deeper
Here’s a list of resources for both executives and board members who need support with this tough topic:
Learn more about dismantling Founder’s Syndrome
Pittsburgh-based program to give overworked executives a real and well-deserved break
Sometimes, good things need to end. If you find yourself there, here’s a helping hand for a more conscious and caring nonprofit closure
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