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V O L . X X I N O. X X I S E P T E M B E R 2 1 , 2 0 1 5 8 B U S I N E S S M A I N E B U S I N E S S M A I N E B U S I N E S S N E W S F RO M A RO U N D T H E S TAT E (207) 402-3353 | HealthOptions.org I finally found a health insurance option that's good for both my business and my employees. '' '' We're a nonprofit, Member-led health plan offering a broad selection of affordable, comprehensive health insurance for businesses across Maine and New Hampshire. Our plans are backed by knowledgeable, local Member Service Associates whose main goal is the satisfaction of your employees. Associates whose main goal is the satisfaction of your employees. We are here to improve their health . . . and your bottom line. 082115-01-0066 082115-01-0066 HARRIMAN.COM AUBURN PORTLAND MANCHESTER Find us on ARCHITECTURE ENGINEERING SUSTAINABLE DESIGN PLANNING INTERIOR DESIGN Cary Medical Center, Women's Imaging Center © Blind Dog Photography Nonprofi ts anticipate wave of transitions A wave of leadership transitions, largely due to retirements, has begun in Maine's nonprofi t sector. But there is some question as to whether the sector as a whole is prepared to make the transitions as smoothly as possible. Preparing for this wave of transition necessitates a holistic approach to lead- ership development, says Scott Schnapp, executive director of the Portland-based Maine Association of Nonprofi ts, a man- agement support, leadership develop- ment and advocacy organization. "It's not just about the person at the top," Schnapp says. "It's about foster- ing leadership within the organization. Recruiting top talent also involves a thoughtful compensation strategy." The accelerating pace of leader- ship transitions took its time coming. According to 2014 report entitled "Leadership New England"— a survey of more than 1,200 nonprofi t staff and board leaders from throughout New England, con- ducted by Boston-based Third Sector New England — a wave of leadership transi- tions was expected a decade ago, as baby boomers headed toward retirement. Schnapp stresses that the for-profi t sector faces the same situation, and the rate of leadership transitions at nonprofi ts is likely no greater than the rate among for-profi ts. The recession kept people in their jobs, but the report reveals that many nonprofi t leaders are ready to move on. "The nonprofi t sector in New England faces a looming leadership transition," the report says. "A signifi cant number of leaders have served in their current positions for more than 10 years, over half are age 55 or older and many have worked in the nonprofi t sector for decades." Sixty-four percent of respondents said they will leave their current positions within fi ve years; 30% reported they will leave within two years and 9% within one year. The report says most nonprofi ts are unprepared for transitions, lacking suc- cession plans, a deep bench of talent and sustainability strategies to strengthen both staff and board leadership. The problem is exacerbated, according to the report, by the challenges of fund development, strains between leaders and their boards, and undercapitalization and the consequent underinvestment in leadership development. "These fi ndings are particularly concerning as the sector is now beginning to experience the departure of boomer leaders that has been predicted for years," the report says. "In the face of these departures, investing in core operations and the leadership pipeline for nonprofi ts is essential. But support for develop- ing leaders in the nonprofi t sector is far from the norm. In fact, over the past 20 years, annual foundation support for leadership development has totaled just 1% of total annual giving — a bewildering level of underinvestment given the role that nonprofi ts play in our society and the high expectations that foun- dations and others place on nonprofi t leaders." Maine's environment for nonprofi ts is even more challenging than the rest of New England, says Schnapp, given its situation as a poor rural state relative to the rest of the country, with a challenging geography and a small corporate presence with which to partner. Maine also has the highest median age in the nation, which could exacerbate the rate of transition, he says. Overall, Schnapp says, he views leadership transitions as opportunities to revitalize organizations and cultivate new relationships between partners. "I think the process of how organizations go through transitions ultimately dictates success or failure," Schnapp says. "The sector is extraordinarily adap- tive. It always has been, both in the positive and negative. Businesses do the same thing. You have to seize opportunities and you have to weather challenges." — L a u r i e S c h r e i b e r P H O T O / T I M G R E E N WAY Maine Association of Nonprofi ts Executive Director Scott Schnapp.

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