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Employment of Executive Director by a Nonprofit Corporation

State:
Multi-State
Control #:
US-00643BG
Format:
Word
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Description

The relationship of an employer and an employee exists when, pursuant to an agreement of the parties, one person, the employee, agrees to work under the direction and control of another, the employer, for compensation. The agreement of the parties is a contract, and it is therefore subject to all the principles applicable to contracts. The contract may be implied. Most employment contracts are implied oral agreements. In this type of arrangement, the employer is accepting the services of the employee that a reasonable person would recognize as being such that compensation would be given to the employee.

The contract will often be an express written contract. In other words, the duties of the employee will be specifically set forth in writing in the contract. The attached form is a sample agreement between a nonprofit corporation and an executive director.
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FAQ

Nonprofit Officers A nonprofit's officers include its president, vice president, secretary, treasurer, executive director, and chief executive officer (CEO). Officers are usually classified as employees because they work under the board of directors' direction and control.

The executive director oversees hiring, firing, maintaining records, compliance, and other administrative duties. The director is also responsible for overseeing fundraising and ensuring sound financial practices.

Officers, unlike directors, each have individual duties related to managing some aspect of the corporation's activities and affairs. Such duties are generally not defined by corporate laws, but they are described in the bylaws and/or a written position description and defined in part by custom.

If employees appear confused about the organization's goals or operations, your nonprofit may benefit from hiring a different executive director. An ED can establish organizational-wide goals and make them known, guide employees at all levels of the organization, and serve as the leader for your nonprofit.

The Executive Director is responsible for overseeing the administration, programs and strategic plan of the organization. Other key duties include fundraising, marketing, and community outreach. The position reports directly to the Board of Directors.

Executive director and chief executive officer (CEO) are leadership titles in organizations.The term executive director is more frequently used in nonprofit entities, whereas CEO is used with for-profit entities and some large nonprofits.

Duties for the Executive Director will include managing company assets, optimizing financial operations, providing leadership to all staff, establishing business goals, ensuring tax compliance, advising the board of directors on organizational activities, overseeing and streamlining daily operations, improving staff

Great executive directors are goal driven and possess a high degree of motivation and energy. They are doers. They have a record of productivity. Passion for the Organization's Mission. They are driven by the importance of the organization's mission.

The answer is yes, although most nonprofit corporation laws contain a requirement that one person is designated as the president.A nonprofit can have a president/CEO and an executive director if the organization maintains a specific structure. For example: President/CEO who has full authority for operations.

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Employment of Executive Director by a Nonprofit Corporation