In recent years, the charity sector has noticed a movement away from traditional hierarchical leadership structures toward more distributed and collaborative approaches. Numerous factors are driving this trend, such as the demand for more sustainable leadership methods, better work-life balance, and greater diversity.
Co-Leadership Models: Candid reports that about 18% of the public charities in their database have implemented a co-leadership model (Clerkin, 2024). In this arrangement, two or more people—often with complementary backgrounds or skill sets—share leadership duties. One example of this tendency is the appointment of Kelly Verel and Nate Storring as co-executive directors by the Project for Public Spaces in 2022 (Gose, 2023).
Benefits and Diversity: Co-leadership models seem to encourage a wider range of backgrounds in nonprofit leadership. According to Candid's research, compared to 30% of NGOs managed by a single person, 43% of co-led organizations had at least one BIPOC (Black, Indigenous, and People of Color) leader. Furthermore, compared to 63% of single-headed organizations, 81% of co-driven NGOs are directed by at least one woman (Clerkin, 2024).
Nonprofits are also investigating a range of alternative non-traditional arrangements in addition to co-leadership:
Worker-Ownership Models: Firms like Data Driven Detroit and the Sustainable Economies Law Center have implemented worker-cooperative arrangements prioritizing employee equality and democracy (Sharp Eizinger & Martin, 2023).
Fiscal sponsorship: This concept lessens administrative burdens by enabling smaller groups or initiatives to function under a larger organization's tax status. According to Sharp Eizinger & Martin (2023), Social Impact Commons estimates that 600–1,000 fiscal sponsors are active in the United States.
There are multiple variables influencing this change:
The COVID-19 pandemic's demand for novel approaches to work putting an emphasis on power sharing and elevating BIPOC leaders
Succession planning
Breaking the cycle of burnout in leadership positions
These new approaches may resolve long-standing problems in the nonprofit industry, like succession planning challenges, leadership burnout, and a lack of diversity at the top. However, meticulous planning, continual learning, and adaptation are necessary for successful implementation (Sharp Eizinger & Martin, 2023).
As the nonprofit sector develops, these alternative organizational forms may become more significant in creating more diverse, long-lasting, and productive organizations.
References:
Clerkin (2024). "Co-leadership: A route to more varied, long-lasting nonprofit organizations." Honest Blog.
Gose, B. (2023). "Increasingly, Nonprofit Organizations Are Hiring Co-CEOs to Avoid Being Alone at the Top." The Chronicle of Giving.
Sharp Eizinger, M., & Martin, T. (2023). "New Organizational Structure Models are Toppling the Staff Pyramid." Johnson Center for Philanthropy.The Shift Towards Alternative Leadership Models in Nonprofits