The state of the economy has created challenges for human service nonprofit organizations struggling to survive under turbulent conditions resulting in budget cuts, decreased government funding, corporate and individual giving, and increased demand for services. The purpose of this qualitative study was to explore the phenomenon of the relationship of executive directors and board chairs of nonprofit organizations experiencing a changing environment and factors contributing to relationship development. Data was collected through interviews with ten executive directors and ten board chairs of human service organizations. The results of this study provide a Model of Relationship Development under Situational Conditions. Using the theoretical framework of Leader-Member exchange, the findings suggest that the quality of the relationship has a direct impact on board behavior and that positive relationships can be developed through the training of relational and behavioral skills.