How Nonprofit Executive Directors Should Quit
There is no more important staff role in a nonprofit than the executive director (ED).
Sometimes called the CEO, the executive director’s role is complex and multifaceted. Executive directors are privy to information no one else has. Internal and external stakeholders may form opinions about the entire organization based on interactions with the ED.
In many cases, the ED is also the organization’s top ambassador, top fundraiser, and top manager.
For all these reasons, the voluntary departure of an ED can be seismic for an organization. Depending on the nonprofit, it can also affect the region where you work, your sector, and the people you serve.
I am a huge fan of executive directors having employment contracts. Even in an at-will employment state, contracts trump at-will status. Employment contracts protect against being fired without cause. But what if the ED wants to leave the organization?
How do they do it while balancing their personal, career, and organizational interests?
For many in nonprofit leadership, it isn’t just a job; it's a legacy, and it's about reputation and maintaining relationships. T
hat said, for some, there is a toxic or horrible situation that drives the ED to leave with their sanity and integrity and not much else.
The Unique Role of a Nonprofit ED
The role of a nonprofit executive director is unique and uniquely challenging. The ED reports to a volunteer board of directors who likely don’t work at the organization and only casually review and weigh in on organizational matters. In a perfect world, the board governs and the staff implements.
The board sets long-term vision and approves the budget and possibly new programs, and the staff uses that budget to lead all the day-to-day decisions of running the organization.
All the activities below the board level are held by the ED, even though they may delegate many of the functions to staff or consultants. At the of the day, the buck stops at the ED’s desk.
The nonprofit ED role can be very stressful and isolating and is frequently not paid as well as their private sector counterparts. The stressors of this role have been well documented and have led to allegedly higher levels of substance abuse or addiction and higher levels of burnout.
For these and many other reasons, EDs may decide to resign. But how they resign can be a powerful transition point for any organization.
Reasons Why a Nonprofit ED Would Resign
There are many reasons why the top executive in a nonprofit would want to leave. We’ll examine a list of these below. A skilled and careful board will read this list and work to retain a strong ED by thinking about proactively addressing these reasons.
Because the role is not a good fit: Sometimes, the ED realizes they are not the right fit for the job or the organization. Sure, the board may have felt the ED was the right candidate when hired, but that doesn’t mean the ED agrees that they are what the organization needs today.
This is totally separate from reasons related to imposter syndrome. Many executive directors can see the funding and issue landscape and make the tough decision that they may not be equipped to do what is needed to propel the organization toward mission attainment.
Burnout or exhaustion: Burnout is a real thing. As an ED, you can work so hard, with little support and so few coping tools to deal with the constant overwhelm, that it can sap the energy you need for the role. This can even spill over and damage your personal life.
For situations of burnout, the ED will need to cope, power through it, rest, seek coaching or group programs for support, consider a sabbatical, or seriously consider resigning to make room for someone who can take the organization to the next phase.
A new job opportunity: Executive directors have options just like any other employee. Sometimes, an ED will resign for a new job opportunity. That new opportunity could offer more prominence, more money, or simply be more interesting.
An ED may also want to start their own business or start consulting on the side. New opportunities don’t always have to be “bigger and better.”
Stifled or pigeonholed: Some leaders fear that they will be typecast and limited when they stay too long in one region, one issue, or one organization. If an ED thinks they will have more and better career options by diversifying their resume, they may seek out new challenges.
This could even include not being an ED in their next role.
Toxic work environment: Most nonprofits hope the ED will make their organization healthy, but not all are able to, and there are always sticky situations that are not easily solved. Sometimes, the toxic, abusive, or dysfunctional dynamic originates with the board, in which case the ED may feel like they are swimming upstream and can’t effectively work for the mission while there are so many conflicts internally.
Sometimes, the toxicity comes from the staff, donor stakeholders, or others. If the ED feels stymied or like they haven’t earned the trust of others, they may want to leave. Sometimes, the ED can sense that by staying, it will appear like they are clinging to a job without true organizational support.
Retirement: Some EDs are at a place in their lives where they don’t want to work full-time ever again. Normally, retirements happen later in life, but not always. If someone has the financial resources to retire, they may!
How I Have Resigned as Nonprofit ED: Case Studies
I have served as a nonprofit ED five times. The following examples are from my own life.
Case Study 1: NARAL ProChoice NC
My first job as an ED was for NARAL ProChoice NC, a women’s reproductive access organization. I had taken a substantial pay cut to take this job but I was delighted to try my hand at the ED role. I had only been at the organization for 14 months when I was offered another ED role making $30K more.
This was a huge offer for me and my family. I had no plans to leave NARAL and had never stayed in a job so briefly, but two things made me decide to resign and take the other offer.
First, I had accomplished a lot of what I set out to do. I found the organization with some financial challenges, which I helped solve. I also racked up several policy and fundraising victories and built a stronger board than I had when I arrived.
The second reason I decided to resign was because I knew I could commit to being immediately available to my successor to ensure a smooth transition.
Here is what I did:
I gave the organization as much advance notice as possible.
I ensured I ended my tenure with solid and respectful relationships with the staff and board.
I promised to make myself available to the board during the transition and available to the new ED as they got situated – for free.
I left the organization on a strong financial footing with several “wins” that could be used to build confidence and fundraising success.
Case Study 2: Tyler Clementi Foundation
In 2014, I made a huge move to New York City to lead a startup national nonprofit called the Tyler Clementi Foundation. I secured an employment contract for one year that was renewed annually.
Toward the end of my third year, I fell in love with my now husband, who was living across the country in San Francisco. I didn’t want to leave the organization, but I had found love, and that was the most important thing to me.
I couldn’t do the job from California, and my husband wanted me closer. I gave my board four months' notice that I would not renew my contract. This gave the organization enough time to do a national search for my replacement.
Here is what I did:
I gave the board 4 months' notice so they had time to run a national search.
I built the organization's coffers and capacity so that the organization was on strong footing.
I made myself available to the board and the new ED to assist in the transition – for free.
I had laid the groundwork for a successful future for the organization, taking the startup through a series of steps to make it a sophisticated national organization.
Case Study 3: Messy Departure from Blueprint NC
In 2013, I was running a prominent progressive voting coalition in North Carolina. Our organization faced a very public attack, and we survived it, but our biggest donor was shaken by the whole incident and told our board that either the ED (me) or the board should resign or they would need to possibly step away.
My board had my back and didn’t ask me to leave, but they also decided to stay.
Essentially, the board was willing to tell the funder that they couldn’t be told what to do. It was bold. But I knew what had to happen. I decided to resign and asked for a severance. I didn’t want the organization to lose $400k (minimum) because of pride.
This was the toughest professional decision of my life, but my departure helped keep the organization strong and growing.
My Recommendations for Departing an ED Role With Integrity
After 30 years in nonprofits, I have seen a lot of things and many ED transitions. It is with that experience that I make the following recommendation to any ED thinking of resigning.
Put yourself first: No organization is so important that we should allow it to break us. Organizations are built around causes and programs, not people. If you are a charismatic founder, don’t worry; you can still choose your next adventure and set up the organization for success.
Even when an ED is offered a job immediately after starting a job (it sucks, I know), you should take the offer and the opportunity that is right for you, independent of what people will think about your abbreviated arrival. I put this recommendation first for a reason.
Prioritize a smooth transition: After you have decided to put yourself first, your next decision should be to do whatever you can, within reason, to ensure 1) a smooth transition and 2) the long-term health of the organization. This usually means engaging the board and staff about what will happen when you announce the departure and what needs to be done to ensure financial, program, and board success after you leave.
Give as much notice as possible: Although “two weeks notice” has become a standard minimum notice for most departing employees, for a nonprofit ED, you really should give a minimum of 30 days and, ideally, a lot more.
Plan ahead: Proactively work with the board to create a transition plan if you think you may leave in the next two years.
Be prepared for emotional reactions: Some people on the board and staff may see you as integral or even as a mentor. Be sensitive to people who feel surprised or sad that you are leaving. Don’t let guilt, emotion, or fear of letting people down drive your decision to quit (or stay).
Ensure stability: To the extent you can, offer to make yourself available to field calls occasionally from the board or the new ED to explain how things were happening before the transition.
Conclusion: EDs should try to resign with integrity and in a way that balances the organization and themselves
Nonprofit executive directors are humans and they are frequently put in a situation to decide between the organization they love and the opportunities that will give them a better career or work-life balance.
Even though some executive directors must leave a toxic organization for their own sanity and well-being, most EDs voluntarily resign for other reasons. EDs have an obligation to fulfill their duties and hopefully set up the organization for success after they leave.
If an organization falls apart after the ED leaves, it doesn't mean they were that much more essential. It means the ED didn’t build a resilient organization that could survive change. And building a resilient organization is one of the most powerful things an ED can do.
If you’re an ED looking to increase your skills, check out my Free Executive Director Master Class or my ED Toolkit.
