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When Sheryl Vohs became CEO of the Blood Center of Iowa, she never anticipated the complexity of the nonprofit she would run. She didn’t plan on learning how to renovate a building for the organization’s new headquarters in the East Village or the struggle in turning the Blood Center around after it lost so much money that it had to borrow to meet payroll.

Ten years later, “it’s time to move on to something else,” Vohs said.

Vohs’ decision to leave is one of at least nine leadership changes among Central Iowa nonprofits in the past year. The reasons are varied, including retirement, a board of directors’ desire for new leadership, new career opportunities and death. Though the Science Center of Iowa and the Salisbury House Foundation are close to announcing new chief executives, the Blood Center and Blank Park Zoo are just starting to accept applications and narrow down their candidate pools.

The result is an environment ripe with opportunity for upper-level corporate managers to transition into a leadership position that also comes with a mission they may be passionate about. It also could lead to a shake-up in how these organizations are run.

“Leadership transitions often create a natural opportunity to review work in progress, analyze programs and services, consider fresh ideas and build new relationships,” said J. Barry Griswell, who last year left his post as CEO of Principal Financial Group Inc. to become president of the Community Foundation of Greater Des Moines.

Reasons for change

Though the reasons for Central Iowa’s nonprofit leadership transition are varied, Robert Ottenhoff, president and CEO of GuideStar USA Inc., which compiles and publishes data on nonprofits, cites a few factors that are driving changes nationally.

Many nonprofit leaders started their “call to service” 20 or 30 years ago, during a time when the nation was energized about nonprofit work, he said. Now those Baby Boomers are ready to retire. According to a 2004 Annie E. Casey Foundation study, one-fourth of the 2,210 executive directors surveyed anticipated leaving their organizations within two years.

Fueling these decisions could be the demanding work of running a nonprofit and the role of the executive director turning into a day-to-day business manager rather than someone who is directly involved in the mission, Ottenhoff said.

According to a Community Foundation report this year, more than 60 percent of Greater Des Moines respondents say obtaining funding and recruiting new donors were a major challenge right now, and nearly 80 percent said the demand for their organizations’ services increased last year.

Meanwhile, the troubled economy is making nonprofit leadership roles especially attractive to people with strong business backgrounds.

“There are many talented people in this community who are underemployed or not employed in the executive ranks right now,” Vohs said, “and it does make these very important nonprofit opportunities ripe for the right person to be very successful.”

The hunt

Vohs was working as vice president of provider relations for Wellmark Blue Cross and Blue Shield when the opportunity arose for her to lead the Blood Center.

“When I came to this organization, I was kind of done career building,” she said. “It wasn’t about me anymore. It was about payback to the community.”

Those involved in nonprofit leadership searches say business managers tend to be drawn to the mission of the organization and are willing to forgo the higher salaries and benefits they would receive if they stayed in the corporate world.

Jan Burch, owner of Jan Burch & Associates, which is providing executive search services for the Blood Center, said she was surprised by the “breadth of experience and the types of industries that are being attracted” to the position. The search committee is keenly interested in finding a candidate who has business acumen, she said.

Vohs has agreed to stay on board until her successor is named, but is looking forward to possibly pursuing teaching and consulting, after she receives her master’s degree in organizational development from Drake University.

Terry Rich left the Blank Park Zoo to head the Iowa Lottery this year, leaving board chairman Mike Hubbell in charge of the zoo’s operations until a new leader is named.

Pat Hensen, human resources director for the zoo, said, “I’ve seen quite a few applicants come in,” without soliciting resumes yet. It is evaluating executive search firms to work with right now.

Meanwhile, the Science Center has taken nearly a year to find its next CEO since Mary Sellers announced last April that she was moving back to Florida.

A board search committee has worked with an executive search firm in Chicago. Board chair Karen Shaff said the organization is interested in someone with good fiscal and management capabilities but is more focused on finding someone who has experience working with science institutions.

Changes ahead

Salaries and benefits may not change too significantly to attract top talent for these new roles, especially given the economy. According to The NonProfit Times’ annual salary and benefits survey, the average pay of executive directors is expected to fall 1.07 percent this year from the average pay of $114,456 in 2008.

Traditionally, nonprofit salaries on the high end have been below what for-profit salaries would be for medium- to low-level management jobs in the private sector, Ottenhoff said.

One of the main differences is that nonprofits usually don’t offer stock options and other benefits beyond basic compensation. According to the NonProfit Times survey, 73 percent of nonprofits don’t pay performance-related bonuses, and only 16 percent would offer one-time bonuses to attract the right chief executive candidate.

However, given the recession’s effect on businesses, “the nonprofit world will be increasingly attractive as a place to work,” Ottenhoff said.

Those hiring nonprofit leaders in Central Iowa say their compensation packages will be competitive, but declined to give specific figures.

The biggest change with new leadership will likely be seen in the operation of the nonprofit.

Since the Science Center opened its doors four years ago, Shaff said, it has gone through a period of getting established to now looking for sustainable growth. A new leader could bring restructuring.

Griswell said this leadership transition period “underscores the importance of strong board leadership and sound governance for community organizations.”

The Community Foundation offers training for staff and board members through its BoardLaunch, Fundraising University and Leaders to Go series. An event on April 6 will discuss something that’s top of mind for many nonprofits: “How to Make Smart Hires.”