What It Actually Means to Be an Executive Director (and Why You Probably Need One)

Full disclosure: I am an Executive Director, and I love it. I’ve served in many different staff and board positions within nonprofits, but at the end of the day, I’m an Executive Director. The reason I love this job so much is that I get to see every side of the organization. I get to be a part of every conversation. I get to work with the people we are serving and the people funding the mission. I’m in this industry because I believe serving my community is the best way I can leave the world better than I found it—at least in my little corner of it.

And I find that most EDs have that same passion.

That alone is why you need an ED.

You need that person that wants to be in every room and part of every conversation. And they want that not because of ego, but because of love for the mission.

Throughout my work, however, I have come across many organizations that don’t understand this vital role. Sometimes, they decide it’s not necessary. Or they grant the title to someone but not the responsibility. Or they put someone in the role who doesn’t have the unique set of skills needed to be successful.

The Executive Director position is special. It’s vital. And it’s completely misunderstood.

To illustrate how dangerous it is to underestimate the importance of the ED, I want to give you a few real-life examples.

One nonprofit I’m familiar with had an ED who had been with the organization for many years. She had worked and volunteered there for decades and knew their mission inside and out. No one was better positioned to lead than her.

But the board had a complete misunderstanding of what the role of the ED was. They, rightfully, realized they needed the role, but hadn’t considered how it would change the way they functioned. Historically, the board had just done whatever was needed to complete the mission. They were, after all, proud to be a “working board.”

Working board. This term is what keeps me up at night. When I hear “we’re a working board,” all I see are giant red flags. To be clear, every board should be “working.” They have the most important work in the organization. But when I hear “working board,” what they are actually saying is: we are ignoring our real work to do what a staff should be doing.

And that was certainly the case here. They had no strategic or fundraising plan. No one was stewarding the donors. They had no endowment or other financial safety net. They had not done the work a board should be focused on because they were too preoccupied with fulfilling the mission and managing one cash-flow crisis after another. Who has time to have coffee with a donor when we’re busy with bookkeeping?

Hiring an ED was the right move. Instinctively, they knew they weren’t functioning well. The ED position should have changed everything.

But they held back. All they knew was mission fulfillment. They were scared to change, even though they knew they should. They hired the ED, but they didn’t give them the proper authority to actually run the organization. They had become too addicted to controlling the day-to-day. They gave the ED the keys, but wouldn’t let them leave the driveway.

The position was added—as well as the new payroll expense line—but they found themselves in the same position. Stagnant and overwhelmed.

Unfortunately, in the end, they blamed the lack of change on the position and eliminated it. The ED became collateral damage. And the organization continued to struggle. To make matters worse, her years of service to the organization had made her the face of their mission for many members of the community. Her sudden departure did not sit well with their donors and stakeholders. On top of everything, now they had a PR issue to handle.

Unfortunately, not understanding or valuing the role is all too common in the small nonprofit world. And it can lead to more than board burnout. Sometimes it leads to bankruptcy.

This nonprofit had been running on a razor-thin budget for decades. But they had always fulfilled their mission, and within their financial means. They had always had an ED. Some were better than others over the years. What led to their ultimate demise was how the board worked with their ED.

They had a couple of founding members who were never cycled off the board. These members were revered for the work they had done to found and build the organization. And rightfully so. Their literal sweat and blood was infused in the work they were doing.

Unfortunately, they were also in the habit of micromanaging the ED and their staff. They maintained the books, ran all facility maintenance and improvement projects, hired every member of the staff, and personally approved every mission project undertaken by the organization. They were the nonprofit, and the ED had to go through them for everything.

This worked for a while—20 years, in fact. But the status quo was quietly weakening their foundation. And when change happened, they weren’t prepared.

Their involvement had created a culture where one or two members of the board had ultimate control. When they eventually retired and left, that role was filled by a new board member with great ideas and the gravitas to convince the other members that he would lead the organization into its next phase.

They also had a new ED. A good one. She had years of experience and knew the community. She knew what her job was and how to lead.

Had they relied on her—the organization would be functioning today.

Spoiler alert. They didn’t. They are not currently functioning. They closed up and filed for bankruptcy.

The ultimate downfall was that the culture of the organization allowed this new board member to take full control of major decisions and finances—without including the ED. To the point that information was deliberately hidden from her because they knew she would push back. When the ED uncovered what was being hidden from her, she rightfully quit.

In the end, not respecting the role of the ED led to their downfall.

When the ED is given the full authority it’s designed for—and a board that supports them—a nonprofit can conquer the world.

When a nonprofit ignores the value of an ED, they spin their wheels and eventually crash hard.

If you’re on the board of a nonprofit that doesn’t have an ED, you may be asking yourself right now: I get that they’re important, but what do they actually do?

A fair question if all your organization knows is a “working board.”

If we hire an ED, what should we expect them to do?

What will we do?

The best way I can illustrate the function of an executive director in a nonprofit is to describe how I came into this role.

I came into the nonprofit industry through the arts—community theater, to be exact. I had a love for the performing arts since I was a kid, and at the beginning of my adulthood, I found I had a natural instinct as a stage manager.

For those that aren’t theater kids, a stage manager’s job is essentially holding each loose thread during the rehearsal process to ensure it all comes together in the end. Basically invisible to the world, vital to the successful performance of a play.

That’s the executive director. The most important person on the staff who often goes unseen. The one holding all the threads to make sure it comes together in the end.

I currently serve as the ED of a regional symphony orchestra. Whenever I mention I work for the symphony, the first question is always, “What instrument do you play?” To the average patron, all they see are the performers. Naturally, if I work for the symphony, I must play an instrument.

But my work is behind the curtain. It’s got a fancy title but it’s dirty work and it’s not glamorous. My job is not tuxedos and champagne. It’s being hunched over a laptop reconciling last month’s books, digging through numbers to build a report for the board treasurer, organizing the music library into a database for our music director, and constantly moving music stands and chairs around a stage.

An executive director holds it all together. They ensure the work of the mission is complete and the board is well informed.

And most importantly, they support the board in their vital work of fundraising, stewardship, oversight, and governance. They help the board to see roadblocks ahead and plan for the future.

If your organization doesn’t have an executive director, it needs one. Regardless of how new or small your nonprofit is. It needs an executive director because having that role results in freedom for the board. It allows them the space to plan and create structure. It allows for growth and longevity.

The Executive Director role, successfully implemented, will enable your nonprofit to fulfill its mission for many years to come.

Now, go do some good.