Can A Nonprofit Organization Have A President/CEO & An Executive Director?

By: Eugene H. Fram

Yes, if the organization has the following structure:

Board With A Volunteer Chairperson
President/CEO With Full Authority for Operations
Executive Director for Division A
Executive Director for Division B

However this structure can be confusing to persons in the nonprofit arena. The executive director should have final operational authority for all operational matters related to the organization, except those designated for the board in the bylaws. For example, pensions plan changes.

The big question is who carries the CEO title. Some nonprofits, in their early stages, have a volunteer, part-time, President/CEO and an operational Executive Director. This signifies the volunteer, representing the will of the board, can have final authority in all daily and policy issues. This is not a good structure because the CEO title might lead to the volunteer having liabilities that other board members don’t have. In addition, it can lead to board micromanagement, a culture that is difficult to change.

From clarity purpose for those in and out of the nonprofit arena, the following structure, based on my experiences, is best:

Board With A Volunteer Chairperson
President/CEO With Full Authority for Operations
Vice President Division A
Vice President Division B

Board Members: Try it and you will like it. Thousands of nonprofits have. A great deal of the success of the model develops on bases of organizational trust and the willingness of the senior manager to accept the managerial responsibility involved.

Source: More in: “Policy vs. Paper Clips,” Third Edition, 2011. Available on Amazon.com

My Blog Site: http://bit.ly/yfRZpz