Executive Director Fired: Read the Letter
I have warned for a long time that all nonprofit executive directors and CEOs need an employment contract to protect themselves from being fired without cause.
As much as we in the nonprofit sector want to believe in the power of trust, goodwill, and a shared cause, it is not enough. Nonprofit leaders need employment contracts to protect ourselves and our organizations.
Executive directors are fired without cause more than you might think. When it happens, it is jarring.
Sometimes it happens out of the blue or even because the board votes to dissolve the organization. Sometimes, as in the story below, a leader’s sudden firing even makes local headlines.
Nonprofit executive director fired with NO explanation
On November 15, 2024, a story broke in Michigan that Holy Cross Services had fired their CEO. According to the article, the CEO was not given a reason for his termination.
“No reason was provided for Kunzelman’s termination, and he tells 6 News he still has not been told specifically why he was terminated. And he may never get a specific explanation as Michigan is an at-will employment state. That means an employer can fire you for legal reasons, at any time.”
According to the article, the CEO had been vocal against a new policy promoting anti-gay discrimination. The termination letter was included in the story and it is below. [Trigger warning if you have ever been fired in a humiliating way.]
Nonprofit leaders need employment contracts to do their job
I don’t know the details of this termination, but the point is to show you that you are owed no explanation for being fired in an at-will employment situation. You can give many years of service and be tossed out on your ear.
This blog post isn’t about Ryan Kunzelman as much as it is about all of you.
Even if you have a terrific relationship with your board, one thing could cause them to see you as a risk and get rid of you. When lawyers get involved, you get letters like the one above. Aggressive, combative, and threatening.
To have security to do your job and reach the mission of the organization, you need protection so you don’t face the slings and arrows of politics. It makes whistleblowing safer and it has also protected executives from resisting policies they feel are immoral.
In this case, Holy Cross says they don’t discriminate against LGBTQ people, but possibly resisting their policies may get you fired.
Nonprofit leaders who are fired don’t get golden parachutes
For the most part, nonprofit organizations do not sever their relationships with their executive directors and then include a generous severance payment, which means you can be fired for nothing AND be put in financial duress and damage your future work opportunities.
The primary goal of an employment contract is security. Fracturing that security should come at a cost. When an employee has not been fired for cause, they deserve some respect and accommodation for all their service.
Imagine getting the letter above and not knowing what you did to get fired and that the organization you served for years, has cast you out. It happens every day.
Employment contracts protect your loved ones too
A good employment contract protects your income, mortgage, rent, and security. Without security, how do you choose your home, school, groceries, or any kind of child care, health care, or vacation?
Contracts are key to protecting all that you love. When you don’t have the security of a contract, it may make you think twice about taking the top job. We all know that when the going gets tough, the lead person is usually the one to take the fall.
In the corporate world, no one would take on an executive role without a contract. It’s too disruptive to their career and family. Nonprofit leaders should receive the same protections.
Conclusion: Protecting our nonprofit causes and leaders
All workers need workplace protections, but especially nonprofit leaders. Nonprofit board members are volunteers who don’t work with us day in and day out. They don’t have a financial interest in organizational stability, so they can act erratically and without all the information. Or they can try to force executives to implement problematic policies.
An employment contract can address these scenarios and provide redress. You can learn more with my course about protecting yourself as a nonprofit leader and grab my executive director employment contract template today.
