Center for Nonprofit Management
Current Research Project
CHICAGOLAND NONPROFIT STUDY
Recent surveys have indicated that nonprofit leadership is at a critical juncture. The Development Resource Group, Inc. (DRG), an executive search firm, conducted a national survey of nonprofit CEOs in 2006 to learn more about the need for executive leadership in the nonprofit sector. Although the response rate was low (10%), the results were startling.
• Two out of five (40%) CEOs plan to leave their jobs within the next 24 months. Thirteen percent plan to leave in 6 months.
• Their organizations are not prepared for turnovers in leadership since most respondents reported that neither their boards nor their management teams have discussed succession planning. Only 34% of the CEOs reported that their organizations have formal training systems to develop senior staff.
In a separate study conducted by CompassPoint Nonprofit Services and the Meyer Foundation (Daring to Lead 2006), 75% of nonprofit executive directors are planning to leave their current jobs within 5 years. Nine percent are currently in the process of leaving. Again, findings suggest that nonprofit organizations are not prepared for transitions in leadership and that only approximately half (50%) are currently developing future leaders.
Daring to Lead 2006 was conducted during 2005 in 6 cities, including Chicago. Although 1,932 executives responded, the sample was not randomly selected and relatively few small organizations responded. In fact, only 290 (15%) of the respondents were from Chicago and, of those, 64 (21.9%) had from 5 to 10 staff (personal communication with Natasha D’Silva, August 31, 2006). In Chicago, most nonprofit organizations are small. More information is needed regarding the state of nonprofit leadership in the Chicago area, especially among small nonprofit organizations.
Spertus College is conducting the Chicagoland Nonprofit Survey to discover the state of nonprofit leadership in the Chicago area. Specifically, the Survey measures executive turnover, executive satisfaction, and challenges facing executives. Because both the DRG and CompassPoint studies found that boards of directors have a significant impact on executive satisfaction and turnover rates, Board Presidents are also being surveyed to discover how well boards of nonprofits function and challenges they perceive in board/staff relationships.
Sample
A stratified random sample of the 5,625 nonprofit organizations in the Spertus Nonprofit Database were selected, ensuring proportionate representation of nonprofits in 11 categories: associations; business/community; children/family; culture/arts; education; environmental; faith-based; foundations; health/health care; law enforcement/legal; and social services. In order to discern statistical differences in responses among groups, 2,019 surveys were distributed.
Methods
Survey Instruments. Two separate surveys were constructed for this study. Data were gathered from executive directors regarding the organizations for which they work and their experiences as an executive, their plans regarding their futures in nonprofit leadership, their perceptions of their jobs, and skills they need. Board presidents were asked about board activities, board effectiveness, succession planning, skills needed by current board members, and management of the executive staff.
Because the literature has demonstrated that five point scales tend to demonstrate a ceiling effect (i.e., most respondents answer “very good” or “excellent” even when they are not actually satisfied), this study used a three point rating scale for most questions. This scale, commonly used by the well-known Picker Commonwealth Foundation in its patient satisfaction surveys, has been found to overcome the tendency toward falsely high scores and provide more reliable data.
A tool developed by the National Council of State Boards of Nursing has demonstrated reliability in measuring discrepancies in perceptions of board effectiveness. This tool, which uses a four-point scale, was modified for use in this study.
Data Collection Procedures. Copies of each survey will be sent to 2,019 nonprofit organizations in the Chicago area. Using a stratified random sampling approach, the sample will be obtained from the Spertus Nonprofit Data Bank. Eleven categories of nonprofits will be represented proportionately in the sample.
A copy of each survey will be sent addressed to the Executive Director and Board President, respectively, of each organization in the sample. A cover letter sent with each survey will inform the recipient of the study, measures of human protection, and instructions for completing and returning the survey.
A three-stage mailing process will be used to collect data. A pre-letter will be sent announcing the eminent arrival of the survey and explaining its purpose. The survey will be sent one week after the pre-letter. A reminder postcard will be sent to non-respondents three weeks after the survey.
Protection of Human Subjects
The cover letters accompanying the surveys described this study and its purpose; described any foreseeable risks, benefits of participating, and procedures used to ensure confidentiality of records and data; and listed contacts at Spertus College in case of questions or concerns. They also included a statement assuring respondents that participation is voluntary, refusal to participate will not result in any penalty, and participation can be discontinued at any time during the study without penalty.
Risks to participants consist of possible impact on job security if confidentiality of responses were to be breached. All potential participants were ensured confidentiality with regard to their participation and responses. Surveys with identifying information have been destroyed once data were entered into the research data base. Identifying data is kept in separate data bases and coded. Files containing mailing information is kept separate from the data files.
Return of completed surveys constitutes informed consent to participate. Board Presidents, as well as Executive Directors, were asked to return their surveys directly to Spertus College. Each were assured that at no time will their responses be shared with the other and that all results will be reported in the aggregate.
Results
Results will be sent to participating organizations and posted on this web site.