How Founder Syndrome Strangles Grassroots Nonprofits
By Lynette Battle
It’s always a privilege to share the wisdom of our consulting contributors, and today we’re especially glad to welcome back Lynette Battle. Her last blog post in April sparked important discussion around leadership transitions in grassroots nonprofits. In her newest piece, “When Leadership Refuses to Transition – How Founder Syndrome Strangles Grassroots Nonprofits,” Lynette once again invites us to look honestly at the challenges facing mission-driven organizations — and how leaders can navigate them with courage and clarity.
In the nonprofit sector, particularly among grassroots organizations serving historically underserved communities, leadership transitions are often an afterthought — or worse, an outright taboo. A troubling pattern has emerged: many nonprofits are being held hostage by their own founders or longtime executive directors, who, despite their early and important work, now stand as barriers to the organization’s growth and sustainability.
They see the nonprofit as their “baby,” something they nurtured from infancy. But what they fail to recognize is that the organization has matured. Like any healthy adult, a thriving nonprofit must be allowed to evolve, adapt, and even outgrow its founding leadership. Without that evolution, the result is often organizational stagnation — or complete collapse.
The Stark Reality: Lack of Succession Planning
The numbers tell a grim story. According to BoardSource’s 2021 Leading with Intent report, only 29% of nonprofits have a formal written succession plan. That leaves over two-thirds dangerously unprepared for leadership changes. For grassroots nonprofits — especially those led by people of color serving marginalized communities — the risk is even more acute.
Candid’s research highlights that nonprofits led by women of color tend to operate with annual budgets under $50,000, compared to the predominantly white-led organizations commanding multi-million-dollar resources. In these underfunded, overstretched organizations, leadership transition is often delayed not because of lack of recognition — but because the founder or executive director refuses to let go.
When the Founder Becomes the Barrier
Founder syndrome — when a founding leader holds tight to power — is a real and devastating phenomenon. It happens when:
- The founder equates the organization’s identity with their own.
- There is resistance to change, modernization, or new leadership styles.
- Boards are passive, allowing founders unchecked control.
- No succession plan is created because there is no intention to leave.
In these cases, the very person who once fought to build something meaningful becomes the person standing in the way of the organization’s future. Their reluctance to relinquish control prevents the nonprofit from attracting new talent, expanding its impact, or adapting to meet evolving community needs.
The Cost of Refusing to Transition
Without proper leadership evolution:
- Programs suffer. Innovation slows down or halts altogether.
- Staff turnover increases. Talented individuals leave when they see no room for advancement.
- Funding dries up. Funders grow wary of instability and a lack of succession planning.
- Community trust erodes. Communities are left underserved or abandoned when organizations shutter unexpectedly.
Indeed, the National Center on Charitable Statistics has found that roughly 30% of nonprofits fail to survive past 10 years — and poor leadership transitions are a major contributing factor.
A Call to Action
For nonprofits — especially those rooted in historically underserved communities — survival depends on being bigger than one person’s vision.
To truly serve the community, organizations must:
- Create and Commit to Succession Plans: Identify and prepare the next generation of leadership early.
- Shift from Founder-Centric to Mission-Centric: Embed the mission, not the individual, at the heart of the organization.
- Build Leadership Pipelines: Invest in mentoring and development of internal staff and board members.
- Empower Strong, Independent Boards: Boards must govern, not rubber-stamp founder decisions.
Final Thoughts
If a nonprofit is truly a gift to the community, then it must live beyond the tenure — or ego — of any one individual. Leadership is not just about founding; it’s about stewarding, evolving, and sometimes stepping aside so that the organization can meet the needs of today and tomorrow.
The ultimate legacy for a founder is not holding on — it’s letting go, and leaving behind a stronger, sustainable institution that continues to change lives long after they are gone.






















