Succession planning: if you were gone tomorrow

This guide is for founders, directors and long-serving volunteers who carry a lot of their charity in their heads. If that is you, ask yourself honestly: if you were suddenly sick, called away, or simply needed to stop, could someone else keep things running next week? After reading, you will be able to write a short emergency succession plan, document how things work, and set up shared access to passwords and the bank so your charity isn't locked out when one person is away.

Why this matters for small charities

In many small charities, one person knows the bank login, the donor list, the grant deadlines, and which landlord to call when the heating breaks. That is a single point of failure. It is not a criticism. It is just how small organizations grow.

Succession planning means preparing for a change in leadership, planned or unplanned. It protects the people you serve, your funders' trust, and your own peace of mind. It also makes it possible for you to take a real holiday.

Part 1: The emergency succession plan

An emergency succession plan says who steps in if a key leader is suddenly unavailable. It can be one or two pages. The board should approve it.

It covers:

• Key roles. List each role that would cause real trouble if empty: executive director or lead volunteer, treasurer, program lead, anyone who signs checks.
• Who steps in. For each role, name an acting person and a backup. Make sure they have agreed.
• What they can decide. Spell out what the acting person can do (pay bills, sign routine contracts, speak to media) and what needs board approval.
• Who tells whom. Who informs the board, staff, volunteers, key funders and partners, and what they say.
• How long. Short absence (a few weeks), longer absence, or permanent departure. The board decides when to start recruiting.

Share the plan with the people named in it, and review it each year.

Part 2: Document how things work

Much of what keeps a charity running is "invisible work." Write it down. A shared folder or binder (some call it a continuity file) should include:

People and contacts

• Board members and their contact details
• Key staff, volunteers and their roles
• Main partners, funders, landlord, insurer, accountant, lawyer, bank contact

Money

• Which banks you use and which accounts, and who are the authorized signers (no passwords in this document)
• How bills are paid and who approves them
• Regular payments: rent, insurance, software subscriptions, payroll
• Where financial records are kept

Legal and compliance

• Where your founding documents, bylaws and IRS determination letter are kept
• Annual filing deadlines: IRS Form 990 series, state charity registration, state corporation reports
• Insurance policies and renewal dates
• Contracts and leases

Programs

• What each program does, who runs it, and when
• Key suppliers and partners
• Simple step-by-step instructions for routine tasks

Calendar

• A year-at-a-glance of deadlines: grant reports, renewals, filings, events, board meetings

Keep it short and practical. A one-page checklist that gets used beats a long manual nobody opens. Update it whenever something changes.

Part 3: Passwords and accounts

This is where many charities get stuck. When the only person with the login is unavailable, accounts can be locked for weeks.

Safe ways to share access:

• Use a password manager with a team plan. A password manager is an app that stores strong passwords securely. CISA, the federal cybersecurity agency, recommends strong passwords and a password manager. Store all charity logins there, not in one person's browser.
• Give at least two trusted people access to the password manager, with two-step login turned on.
• Register accounts to a role email (like admin@yourcharity.org) that more than one person can reach, not a personal address.
• Keep an account list: each system, what it is for, who the admins are. (Not the passwords themselves.)
• Plan for the password manager's own recovery. Follow its instructions for emergency access, and store the recovery details somewhere secure that the board chair can reach.

Part 4: Bank access

Check with your bank now, while things are calm:

• At least two authorized signers, ideally board officers, and preferably not related to each other.
• Online banking access for more than one person, each with their own login.
• Know the bank's process for changing signers, and what paperwork (often a board resolution) it requires. Keep a template ready.
• Two-person approval for large payments, if your bank offers it. It protects against both mistakes and fraud.

Part 5: Tell the IRS when your responsible party changes

When your charity applied for its Employer Identification Number (EIN), the nine-digit IRS tax number, it named a responsible party: a person the IRS links to the organization. If that person leaves, the IRS says changes in the responsible party must be reported within 60 days, using Form 8822-B. The same form is used for a change of mailing address. Add this to your succession plan so it isn't forgotten during a busy transition.

Planned transitions

When a leader plans to step down, give as much notice as you can. A planned handover might include:

• Several months of overlap, if possible
• Introducing the successor to funders, partners and key volunteers in person
• Walking through the continuity file together
• Moving account access and bank signing authority formally
• A clear last day, and a warm public thank-you

Founders, this can be hard. Letting go well is one of the greatest gifts you can give the charity you built.

Your succession checklist

• Write a one-page emergency succession plan and get board approval
• Name an acting person and backup for each key role
• Start a continuity file covering people, money, legal, programs and calendar
• Move all logins into a team password manager with at least two admins
• Register key accounts to a shared role email
• Confirm at least two bank signers and online banking users
• Note the IRS 60-day rule for reporting a new responsible party
• Review the plan and file every year

Planning for your own absence can feel uncomfortable. But it is an act of care for the people who depend on your charity, and for yourself.

If you want help starting your continuity file, ask a member charity for help through the Exchange.

General information, not legal, tax or financial advice. Rules change and every situation is different, so check the official sources and talk to a qualified professional before you act.