Full-time Interim, Acting, or Fractional: Choosing the Right Leadership Model for Your Nonprofit Transition
Your executive director just gave notice. Or maybe they haven't yet, but you know it's coming. Either way, your board is about to have a conversation that sounds something like this:
"Do we really need to hire someone from outside?"
"Can't our COO just step up for a while?"
"What about one of those part-time executives I've been hearing about?"
All valid questions, but none with simple answers. Here's what nobody tells you: the type of interim leadership you choose doesn't just fill a gap—it shapes whether your organization exits this transition stronger or barely survives it.
Let's break down your three main options: full-time interim EDs, acting EDs from your current staff, and fractional executives. Each serves different needs. Most boards pick based on cost or convenience. Smart boards pick based on what their organization actually needs right now.
Full-time Interim ED/CEOs: The Transition Specialists
Full-time interim executives are external hires who specialize in organizational transitions. They're not consultants who advise from the sidelines. They're full-time leaders who run your organization—making payroll decisions, sitting in board meetings, managing staff, and showing up when a donor calls.
The difference? They're trained for temporary. They know they're leaving. That changes everything about how they lead.
The Right Fit:
Brings transition expertise and a clean slate: Interims and Fractionals have led organizations through leadership changes, mergers, restructuring, and strategic pivots before. Multiple times. They know what breaks during transitions and how to prevent it. They also show up without institutional baggage—no old alliances, no legacy grudges, no unspoken "but we've always done it this way" blockers.
Stabilizes operations during uncertainty: Staff anxiety goes up when leadership changes. Donor confidence wavers. Strategic initiatives stall. An interim or fractional's job is to keep everything running while the board conducts a search. They maintain relationships, hit deadlines, and ensure your fiscal year-end doesn't become a disaster because "we were in transition."
Implements systems that outlast their tenure: The best interims don't just maintain—they improve. They document processes that lived only in the previous ED's head. They clarify roles that were fuzzy. They build infrastructure so the next permanent leader inherits a more functional organization, not just a warm seat.
No internal politics or competing loyalties: They're not angling for the permanent job (good contracts explicitly prohibit this). They're not protecting their department. They're not avoiding hard conversations because they have to work with these people for 20 more years. That freedom allows them to make decisions purely based on what the organization needs.
Can make unpopular decisions without career fallout: Need to eliminate a position that should have been cut three years ago? Address a long-term staff performance issue? Change a program model that's not working? Interims can do the hard things that permanent leaders often delay because of relationship preservation. They're gone in 12 months anyway.
Typical Engagement Structure:
Duration: 6–18 months. Most interim placements last 9–12 months, aligning with board search timelines. Shorter engagements (3–6 months) usually signal "keep the lights on" coverage. Longer ones (15–18 months) often involve significant organizational change or complex searches.
Commitment: Full-time (40+ hours/week). Full-time interims work like permanent EDs—full weeks, evening events, weekend emergencies. They're not splitting time with other clients. You get their complete attention.
Compensation: $8,000–$25,000/month. Geographic location, organizational budget size, and scope all impact rates:
Small nonprofits ($1M-$3M budget): $8,000–$12,000/month
Mid-sized organizations ($3M-$10M budget): $12,000–$18,000/month
Large nonprofits ($10M+ budget): $18,000–$25,000+/month
Coastal urban markets (SF, NYC, Boston, DC) run 30–50% higher than these national averages. Most work on monthly retainers with 30–60 day termination clauses. Some include performance incentives tied to specific deliverables.
Additional costs:
Travel and housing (if they're not local): $2,000–$5,000/month
Benefits (if you provide them): health insurance, retirement contributions
Search firm fees (if you're using one to find the interim): 15–25% of total contract
Acting ED/CEOs: The Internal Step-Up
Acting EDs are current staff members—usually your deputy director, COO, CFO, or senior program leader—who temporarily assume executive responsibilities. They're already on payroll, already know your programs, and already have relationships with your board, staff, and funders.
On paper, it's the obvious choice. In practice, it's more complicated.
The Right Fit:
Maintains continuity and institutional knowledge: Your acting ED knows why the finance reports look that way, which board members need extra hand-holding, and why that one donor always calls on Thursdays. There's no learning curve on organizational history, culture, or stakeholder relationships. Day one, they can operate at full speed.
Already trusted by staff and stakeholders: Staff aren't wondering "who is this person?" Funders aren't nervous about stability. Major donors don't need reassurance calls. Your acting ED has existing credibility and relationships that an external interim has to build from scratch.
Can start immediately with minimal onboarding: No recruitment process. No negotiating contracts with placement firms. No two-week waiting period for them to finish their current role. Your board meeting is Thursday, and your acting ED can start Friday.
Tests whether they're the permanent hire: If you've been wondering whether your deputy is ready for the top job, an acting role is the audition. They get to try executive leadership with a safety net. Your board gets to evaluate their performance before committing to a permanent hire. If it works, you've solved two problems at once.
Lower financial investment: Acting EDs typically receive a temporary salary increase or stipend, not external consulting rates. For boards worried about budget impact during a transition, this matters.
Typical Engagement Structure:
Duration: 3–12 months. Most acting ED arrangements last 6–9 months. Shorter periods (3–4 months) rarely give enough time to assess leadership capacity. Longer periods (12+ months) risk burning out someone still trying to do two jobs.
Commitment: Full-time, but often split. Here's the problem: your acting ED still has their old job. Unless you backfill their previous position (expensive and slow), they're trying to be ED and COO, or ED and Development Director, or ED and Program Director simultaneously. Something gets dropped.
Compensation: 10–20% salary increase or stipend. This varies widely based on base salary and organizational culture:
Small increase model: $1,000–$3,000/month added to current salary
Percentage increase model: 15–20% temporary raise
Acting stipend: $2,000–$5,000/month on top of base pay
Hidden costs:
Backfill for their previous role: If you hire temporary help for their old position, you're spending money anyway
Capacity gaps: Work that falls through the cracks because they can't do everything
Opportunity cost: If they're not the right permanent hire, you've delayed finding someone who is
Staff morale: If they're overwhelmed and struggling, it affects everyone
Fractional ED/CEOs: The Part-Time Executive
Fractional leaders work part-time with multiple organizations simultaneously. They're not full-time. They're not temporary in the traditional sense. They provide ongoing executive leadership at a fraction of the cost and time commitment of a permanent ED. Think of them as your strategic executive 1–3 days per week instead of 5.
The Right Fit:
Provides executive-level thinking without full-time cost: Small nonprofits often can't afford (or don't need) a full-time executive director. Your budget is $500K, your staff is five people, and your board is involved. A fractional ED gives you senior leadership expertise scaled to your reality.
Brings cross-sector insights from other clients: Because fractional leaders work with multiple organizations, they see patterns, solutions, and innovations across different contexts. That program model working at their other client? They can adapt it for you. That donor cultivation strategy? They've tested it elsewhere.
Ideal for smaller orgs or those between growth stages: Organizations with budgets under $2M, those rebuilding after a crisis, or groups transitioning from all-volunteer to professional staff often benefit from fractional leadership. You get executive capacity without the full financial commitment.
Can be ongoing, not just transitional: Unlike full-time interims or acting EDs (both temporary by design), fractional relationships can last years. If your organization's needs and budget remain stable, a fractional leader can provide consistent executive guidance long-term.
Less hands-on with day-to-day operations: Fractional EDs focus on strategy, board development, fundraising relationships, and high-level decision-making. They're not in the office every day managing staff scheduling, responding to every email, or handling operational minutiae. You need strong operational capacity underneath them.
Typical Engagement Structure:
Duration: Ongoing (6 months to 2+ years). Fractional arrangements are usually open-ended with quarterly or annual renewals. Some start as 6-month trials and convert to longer-term relationships if the fit works.
Commitment: Part-time (8–24 hours/week). Common models:
1 day/week (8–10 hours): Light strategic guidance
2 days/week (16–20 hours): Standard fractional model
3 days/week (24–30 hours): Heavy fractional leadership
Compensation: $3,000–$10,000/month. Pricing typically scales with time commitment and organizational budget:
1 day/week: $3,000–$5,000/month
2 days/week: $5,000–$7,500/month
3 days/week: $7,500–$10,000/month
Some fractional leaders charge hourly ($150–$300/hour) with monthly retainers and caps. Others work on project-based pricing for specific deliverables (board retreat facilitation, strategic plan development, capital campaign leadership).
Best for:
Nonprofits with budgets under $2M
Organizations with strong operational staff who need executive strategic direction
Groups between major growth phases
Start-ups transitioning from founder-led to professional management
Established organizations downsizing after a budget crisis
When You Need Which One
Some leaders can operate in all three modes. But most situations call for a specific model.
Choose a Full-time Interim ED/CEO when:
Your organization is in crisis (financial instability, reputational damage, major staff turnover)
You need significant organizational restructuring or strategic change
Your board is conducting a thorough permanent search (6–12 months minimum)
You want someone with no internal political complications who can make hard decisions
You need full-time executive presence and can afford the investment
Your previous ED's departure was sudden or contentious
You have weak operational infrastructure that needs strengthening before a permanent hire
Choose an Acting ED/CEO when:
You have a strong internal candidate you're seriously considering for the permanent role
Continuity and stakeholder relationships are your highest priority
You need someone who can start immediately (within days, not weeks)
Your organization is relatively stable and just needs steady leadership during a search
Budget constraints are significant
Your timeline is short (3–6 months) and you need minimal onboarding
Your acting ED has real support (backfill for their old role or significantly reduced previous responsibilities)
Choose a Fractional ED/CEO when:
Your organizational budget is under $2M and a full-time ED isn't financially feasible
You have strong operational staff and primarily need strategic leadership
You're not in active crisis mode
Your organization is between major growth phases or rebuilding capacity
You want ongoing executive guidance, not just transition management
Your board is actively engaged and can supplement executive presence
You need cross-sector perspective and don't require daily operational oversight
The Questions You Should Ask
Regardless of which model you're considering, smart boards ask these questions before committing:
What's your primary expertise? Transition management? Operational leadership? Strategic growth? Fundraising? Program development? Most leaders specialize. Make sure their strengths match your needs.
Have you led organizations in our subsector and budget range? A leader experienced with $15M health centers operates differently than someone from $2M arts organizations. Mission area and scale matter.
What's your approach to board dynamics and governance? You're hiring someone to work with your board, not around them. Ask specifically how they handle governance challenges, board member conflicts, and decision-making authority.
How do you build capacity and hand off when you leave? The best interims (and fractional leaders) don't create dependency—they build systems. What documentation, knowledge transfer, and succession planning do they provide?
What's your actual availability? Fractional leaders have other clients. Acting EDs have other responsibilities. Full-time interims should be all-in. Confirm before you commit, especially for evening/weekend obligations.
How do you structure compensation and what's included? Monthly retainer? Hourly? Project-based? What about expenses, benefits, travel? Get complete clarity on total investment, not just day rate.
Can you share a recent situation where things didn't go as planned? You want to know how they handle adversity, not just their highlight reel. Their answer reveals problem-solving approach and self-awareness.
What do you need from us to be successful? Good leaders know they can't do it alone. What board engagement, staff capacity, or resources do they need? If they say "nothing," that's a red flag.
What would you do in your first 30/60/90 days? This reveals their priorities, their process, and whether they understand your specific situation or they're delivering generic interim leadership talking points.
What This Doesn't Fix
Let's be clear: no interim leadership model—full-time, acting, or fractional—fixes governance dysfunction, board micromanagement, or fundamentally broken business models.
If your board won't make decisions, your acting ED will be paralyzed. If your organization has a $200K structural deficit, your fractional leader can't fundraise you out of it working 2 days a week. If your staff is burned out and your culture is toxic, your full-time interim or fractional will stabilize things temporarily, but the next permanent ED will inherit the same mess.
Interim leadership is crisis management and bridge-building. It's not magic.
The value is in buying yourself time to make better decisions—about your next permanent leader, about organizational direction, about whether you're structured for sustainability. Used well, interim leadership gives your board space to be strategic instead of reactive.
Used poorly, it's expensive stalling.
Making the Choice
So which model do you need?
Ask yourself these questions:
How stable is our organization right now? (Crisis = full-time interim. Stable = acting or fractional could work.)
How fast do we need someone? (Immediately = acting. Within a month = full-time or fractional.)
What's our budget reality? (Tight = acting or fractional. Flexible = all options on the table.)
Do we have a strong internal candidate worth testing? (Yes = acting. No = external options.)
Do we need full-time presence or strategic direction? (Full-time operations = full-time or acting. Strategic guidance = fractional.)
How long will our transition realistically take? (Under 6 months = acting. 6–18 months = full-time. Ongoing = fractional.)
What does our organization most need right now: continuity, change, or capacity building? (Continuity = acting. Change = full-time. Capacity = depends on the depth of need.)
Your answers will point you in the right direction. But here's the truth most boards don't want to hear: the cheapest option often isn't the smartest one. And the most convenient option (promoting from within) sometimes sets up a good staff member to fail in a role they weren't ready for.
The right choice is the one that matches your organization's actual needs right now—not your budget wishes, not your board's impatience, not your hope that this will be easier than it probably will be.
Transitions are hard. Leadership changes are destabilizing. But the model you choose shapes whether you exit this period stronger, or whether you're back here in two years facing the same crisis with less organizational capacity than you have today.
Choose accordingly.
If we can help guide you in the right direction, get in touch!
*Note: Compensation ranges vary significantly by geography (coastal urban markets run 30–50% higher than national averages shown), organizational budget size (larger organizations pay more), and regional cost-of-living differences. Fractional ED models are newer and less standardized, so pricing and engagement structures vary more widely. Individual leader qualifications, track records, and specialized expertise (sector-specific knowledge, turnaround experience, capital campaign leadership) can push rates beyond these ranges in either direction.