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Employment of Executive Director by a Nonprofit Corporation

Santa Clara California Employment of Executive Director by a Nonprofit Corporation

Name: Santa Clara California Employment of Executive Director by a Nonprofit Corporation
Brand: US Legal Forms
Rating: 4.84 (482 reviews)

Category:

Employment - Agreements - Nonprofit

State:

Multi-State

County:

Santa Clara

Control #:

US-00643BG

Format:

Instant download

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

Elected by the board. Two or more offices may be held by the same individual, except the president may not also serve as secretary or treasurer.

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. Board with a volunteer chairperson.

1. Director is a very broad title for a person who works in the top tier of management of a for-profit company or a non-profit organization. Meanwhile, the title of executive director is specific. Other types of directors include: non-executive director, inside director, outside director, and others.

A nonprofit's board of directors generally has the authority under state law to fire an executive director at will, unless the ED has an employment contract that says otherwise or the nonprofit's bylaws establish a special procedure for firing the ED.

Compared to the duties of a president/CEO, the duties of an executive director range much more widely on a management activity scale. Some executive directors are simply clericals while others are sophisticated senior executives.

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.

Managing directors have the highest rank within the company and have the authority to fire the executive director. If the company lacks a managing director or CEO, the executive director takes the spot as the highest-ranking company official.

Nonprofits should assess their unique situation to determine whether the organization should be headed by an Executive Director versus a CEO. The size of the organization is a factor but, with no set standard for categorizing a nonprofit's size, the decision is ultimately a subjective one.

Because a nonprofit board makes high-level strategic decisions for the organization itself, the board chair is mainly focused on helping a nonprofit achieve its mission long-term. An executive director, on the other hand, is responsible for managing the operational side of a nonprofit organization.

Can a founder be on the board of directors? We run into this thought process if a founder is generally overly cautious or has a fear of there being a conflict of interest. However, founder is not actually a designated role recognized by the IRS or any state. So, yes, a founder can be on the board.

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Santa Clara California Employment of Executive Director by a Nonprofit Corporation

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Can the president of a nonprofit also be the secretary?

Can the president of a non profit also be the executive director?

Is director and executive director the same?

Can a non profit board fire an executive director?

Is executive director the same as president?

Can the president of a nonprofit also be the executive director?

Is director or executive director higher?

Should a nonprofit have a CEO or executive director?

What is the difference between an executive director and a director of a non profit?

Can a founder of a non profit be an executive director?

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