Nonprofit Leadership Podcast: "Are Fractional Leaders the Solution to Your Staffing Issues?"
Release Date: June 29, 2025
Host: Dr. Rob Harder
Guest: Cindy Wagman
Introduction
In the June 29, 2025 episode of the Nonprofit Leadership Podcast, host Dr. Rob Harder delves into a burgeoning trend within the nonprofit sector: the rise of fractional executives. Addressing the pressing staffing challenges faced by many small to medium-sized nonprofits, Dr. Harder invites expert Cindy Wagman to explore whether fractional leaders could be the strategic solution organizations need.
Understanding Fractional Executives
Cindy Wagman, a seasoned fundraiser with nearly 25 years of experience, is the co-host of podcasts Confessions with Jess and Cindy and Fracture. She is also a best-selling author of Raise It. Wagman introduces the concept of fractional executives, explaining that they offer specialized expertise on a part-time basis, typically working remotely up to 20 hours a week. Unlike traditional consultants who primarily provide strategies and analyses, fractional executives actively implement and integrate changes within an organization.
“[08:16] Cindy Wagman: ...fractional executives can work up to 20 hours a week and are involved both in strategy and implementation.”
Benefits of Fractional Executives for Nonprofits
Fractional executives present a versatile staffing option for nonprofits that require specialized roles—such as HR, COO, CFO, or fundraising—without the financial burden of full-time hires. Wagman emphasizes that this model allows organizations to access highly experienced professionals who can be more efficient and effective within budget constraints.
“[09:24] Cindy Wagman: ...you can afford someone with more experience and efficiency without the full-time cost.”
Identifying When to Hire a Fractional Executive
Wagman outlines key indicators signaling that a nonprofit is ready to engage a fractional executive:
- Growing Functional Needs: When specific functions (e.g., fundraising, HR) expand beyond the capacity of existing staff.
- Lack of In-House Expertise: When executive directors or leaders possess expertise primarily in programming but lack skills in areas like fundraising or finance.
- Operational Complexity: Organizations with emerging systems that require strategic oversight and streamlined implementation.
“[11:33] Cindy Wagman: If your organization has grown enough that a function no longer fits ‘on the side of the desk,’ it might be time for a fractional executive.”
Fractionals vs. Consultants vs. Full-Time Employees
Dr. Harder probes the distinctions between fractional executives and traditional consultants. Wagman clarifies that while consultants typically deliver strategies or specific project-based outcomes, fractional executives provide ongoing strategic and operational support akin to an in-house role, albeit on a part-time basis.
“[16:07] Cindy Wagman: Fractionals are more akin to having someone in-house who works on strategy and implementation consistently over the long term.”
She also contrasts fractional executives with full-time hires, noting that while hiring full-time may be ideal, many nonprofits cannot sustain this financially. Fractionals offer a low-risk alternative with flexibility in engagement.
Integration of Fractional Executives into Nonprofit Culture
Effective integration of fractional executives requires intentional relationship-building. Wagman advises that during the initial 2-3 months, fractionals should actively engage with various teams and participate in meetings to foster relationships and understand organizational dynamics.
“[30:40] Cindy Wagman: During the first few months, a fractional should meet with different departments and attend team meetings to build relationships and fully understand the organization.”
Current Trends and Future Outlook
The podcast highlights the trend of nonprofits increasingly embracing fractional executives due to:
- Human Capital Challenges: Many nonprofits face high turnover and burnout, making the flexible fractional model appealing.
- Financial Constraints: Fractionals provide access to expertise without the long-term financial commitment of full-time staff.
- Adaptability: As the nonprofit sector navigates a challenging landscape, the ability to scale expertise up or down flexibly is invaluable.
Wagman notes that while fundraising remains the most common function for fractional executives, roles in operations, marketing, and HR are also growing.
“[22:15] Cindy Wagman: Fundraising and COO roles are the most sought-after fractional positions, with growing interest in marketing and HR.”
Advice for Aspiring Fractional Executives
For individuals interested in becoming fractional executives, Wagman offers practical steps:
- Assess Current Roles: Understand contractual obligations and ensure you can balance fractional work with existing commitments.
- Financial Planning: Determine the monthly income needed and plan how many clients are required to meet financial goals.
- Network Development: Warm up existing networks as 90% of clients often come through word-of-mouth and personal connections.
- Skill Enhancement: Ensure you have at least seven years of experience in your specialization to provide credible expertise.
“[27:56] Cindy Wagman: Fractionals are doers who focus on implementing strategies. They should have at least seven years of experience to effectively lead and execute within their specialized functions.”
Conclusion
The episode concludes with a recognition of the growing necessity for flexible, expert staffing solutions in the nonprofit sector. Fractional executives emerge as a viable strategy for organizations looking to enhance their operations without overextending financially. Wendy Wagman’s insights position fractional leadership as not just a trend, but a strategic evolution in nonprofit management.
Dr. Harder encourages listeners to explore further resources at nonprofitfractionals.com and connect with Cindy Wagman on LinkedIn for additional guidance.
“[36:00] Cindy Wagman: Visit nonprofitfractionals.com for resources on becoming a fractional or hiring one, and connect with me on LinkedIn.”
Key Takeaways:
- Fractional executives provide specialized, part-time leadership and implementation within nonprofits.
- They offer a cost-effective alternative to full-time hires, especially for small to medium-sized organizations.
- Effective integration requires active relationship-building and clear communication.
- The trend towards fractional leadership is driven by financial constraints and the need for flexible expertise.
- Aspiring fractionals should focus on building robust experience, financial planning, and networking.
For more insights and resources, visit nonprofitfractionals.com or connect with Cindy Wagman on LinkedIn.
This summary captures the essence of the podcast episode, highlighting the core discussions and insights shared by Dr. Rob Harder and Cindy Wagman on the potential of fractional executives in addressing staffing challenges within nonprofit organizations.