Closing with Class
By Jennifer Sweeney
As the founder and Executive Director of a small not-for-profit agency, I had the opportunity to experience the emotional challenges of closing the organization I founded. Through a highly-charged process, all those at the board table reflected on circumstances realistically, without blaming anyone for the failure of the organization to thrive. How were we able to ensure the situation evolved in such a positive way?
In the beginning
As I had heard and read about “founder’s syndrome”, I recognized from the early stages of the organization’s development that I needed to step away from the organization and trust that it would survive with the commitment of the board, the modest financial resources we had accumulated and the goodwill established with our members and recipients of our services. It was time to start letting go and to bring others in to continue the work.
As with many small not-for-profits, we were dependent on large amounts of donated time from board members and other volunteers. The members of our board of directors were well-meaning with multiple commitments. Each evaluated their individual circumstances and they realized that they would need to find a skilled volunteer willing to operate the organization for little money. Or they would need to raise adequate funds to hire a manager.
Facing Reality
One by one, the directors stated their willingness and commitment to stay on until the next AGM. That was when we looked at each other and realized that without additional human and financial resources, the organization was going to have to close. While I was heartbroken, having invested so many years of my life into the work, I knew that it was no longer up to me alone.
We consulted our members through a special meeting to discuss the available options and the board’s recommendations. At that meeting, the members voted to close the organization and transfer the assets to another organization with an allied mission.
How were we able to reach this consensus amongst our key stakeholders without collapse, implosion or major conflict? Upon reflection, I think we had a few key strategies to accomplish this goal.
Key Strategies
- Keep Egos in Check: A concerted effort was made to keep our egos in check around the board table. Each person had a role and responsibility but we were all equal partners at the table.
- No Blame Game: There was no discussion of blame as we all played a role in the organization’s many successes and failures.
- Address the real situation:By staying focused on the issues and not personalities or blaming people, we were able to work through the difficult steps to sell assets and communicate the closure to members as well as provincial and federal authorities.
- Learn to let go: It may be easy to say but harder to do. Each person involved had an investment in the organization’s success. Each one of us had to resolve the loss in our own way.
- Find a “dance partner”: The time invested in building relationships with allied organizations made the decision of transferring assets meaningful and easier to do than if we had no knowledge of other organizations. This relationship helped the board make a strong recommendation to the membership. We transferred our assets to an organization that was capable of continuing the work we had started.
Several years later, I realize that we managed the closure of the organization in a mature and respectful way. I have spoken with many people who resigned from not-for-profit boards as soon as they recognized problems and did not want to be involved in a messy situation. Yet, I wonder if there are valuable lessons to learn in taking the time to close with dignity.
Key Learnings
Working all the way through the founding and closing of an organization did a great deal for me personally and has made me a better board director. I continue to learn and grow with the confidence that I can contribute these new skills to other organizations.
- No need to run away: In difficult times, the natural response is to walk or run away. Sometimes these situations give you an opportunity to grow and test yourself. The decision is ultimately your own to make.
- Additional experience and skill set: As most pertinent information is available online, we all benefited from learning the details involved in the BC Society Act and Canada Revenue Agency in setting up the organization as well as closing it. We were supported with pro bono legal and financial advice and services but we still had to do the “legwork’” and understand each step.
- Satisfaction: We all left the organization with the satisfaction that we took our responsibility to the organization seriously and did the difficult work that needed to be done.
- Possibilities: The mission of the organization can be adopted by another with more capacity. They may even be able to leverage the assets and continue the work that you started.
While there are no guarantees that the ultimate outcome will be ideal, the process is rewarding, as much as it is demanding. The key lies in trusting that there will be resolution.
About Jennifer Sweeney Jennifer Sweeney, M. Sc., is the Principal of Ariadne Consulting - working with organizations in transition. Jennifer has been a devoted student of leadership development with Vantage Point since 2000 when she was fortunate to move into a small office next door. When she is not working, she volunteers on boards, reluctantly renovates her home and gleefully solves cryptic crossword puzzles with her husband.
About Vantage Point
The mission of Vantage Point is to inspire & build leadership in the voluntary sector. This publication is intended to be a medium of communication and information for the many organizations active in the volunteer and not-for-profit sector. The opinions expressed herein are solely those of the writers and do not necessarily reflect official policy of the Board of Directors of Vantage Point.
Vantage Point
1183 Melville, Vancouver, BC
V6E 2X5 Canada
t 604.875.9144
f 604.875.0710
www.thevantagepoint.ca
A United Way Member Organization and funded in part by the City of Vancouver.

|