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    Re: Founder As Executive Director Conundrum

    Posted by Tony Poderis on 4/22/2009, 4:15 pm, in reply to "Founder As Executive Director Conundrum"
    VIP Poster | Message modified by user Tony Poderis 5/4/2009, 7:51 am

    Arlene, Julie, Linda: You have given appropriate, and well deserved, respect and admiration for founders of non-profit organizations. They have been, and continue to be, the lifeblood of organizations which do so much good. As a matter of fact, founders, more often than not, take on the causes which many would not want to even acknowledge existed. My admiration and appreciation of founders was stated in the PND Talk thread you cited.

    But, now the hard facts need to be reinforced.

    The Executive Director,“Serving at the pleasure of the Board of Trustees,” is the to-the-point (and perhaps annoying, even unacceptable) answer to any organization’s founder seeking to guarantee her or his position as Executive Director---or for that matter, any position within the organization. No understanding, written, or otherwise, can guarantee it. Such understandings, agreements, or contracts are not valid.

    The IRS, and the respective state in which a non-profit is incorporated, provide such accreditation to what are “public charities.” The “owners” are volunteers, donors, and the community---with direct oversight and policy-making responsibility of the Board.

    When a founder forms a non-profit organization, it become a public charity. The founder does not own it. A founder can be named by her of his Board of Trustees as the Executive Director on one day, but at their discretion, and with cause as they see it, they can fire the ED next day.

    Yes, a Board can unfairly dismiss a dedicated and hardworking founder for personal reasons, or they may want to take the Mission in another direction, and one not necessarily good. It may not at all be fair to the founder.

    On the other hand, a founder may not be an effective staff leader, or be lacking in other ways administrative, or be in conflict with volunteers and donors. And that would not be fair either, in this case to the health of the organization.

    The second scenario is too often overlooked, and from my experience, one which is, unfortunately, common.

    Linda cited the only ways for the founder to maintain full control.

    Some good material can be read from the following:

    --- BoardSource
    http://www.boardsource.org/Knowledge.asp?ID=3.200

    --- NonProfit Issues
    http://www.nonprofitissues.com/public/features/point/308.html

    Tony

    Tony Poderis
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