Nonprofit Executive Director: Overview, Roles, and Responsibilities

The nonprofit executive director is responsible for the following.

1. Leadership

Think of the executive director as the nonprofit organization’s president. This nonprofit leader oversees the directors of each department in the organization and represents their interests when reporting to the nonprofit board of directors. Department directors might include marketing, HR, fundraising, or product development. Typically, the executive director offers the department heads strategic guidance on processes related to their respective dockets. 

2. Programming & Board Development

The executive director works with the board to plan, create, and implement programs and activities to ensure they achieve their respective goals. As the board’s primary resource, the executive director assumes the following responsibilities:

• Contribute to the selection of board members and act as a liaison between board and staff.
• Inform the board of staff changes, donor information, ongoing campaign details, and any areas where departmental staff requires help.
• Communicate any staff and volunteer engagement ideas and other concerns that call for the board’s involvement. 
• Plan and prepare board meetings, meeting structure, and meeting agendas in coordination with the board’s chair.

3. Finance

While a nonprofit board has fiduciary duties, it falls on the executive director to oversee financial management of the organization. The nonprofit executive director is responsible for collaborating with the nonprofit treasurer, organizing fundraising campaigns, and positioning the entity for financial success. 

Additionally, the ED must be directly involved in the organization’s annual accounting cycle. Therefore, they must understand and interpret financial documents, including bookkeeping records, budget, cash flows, general financial statements, and analysis reports. They need not necessarily be a financial expert, but they must demonstrate financial competence to brainstorm real financial growth strategies. 

4. Compliance

The nonprofit executive director keeps tabs on all internal controls to ensure the organization complies with its fiduciary duties, financial plans, financial audits, and tax filing. This requires regularly communicating with the head of the finance department, hiring reliable and trustworthy staff, and overseeing various financial records. 

5. Technology

Executive directors should help their organization implement and adopt technology solutions that maximize productivity and streamline processes. EDs can track progress and increase productivity with board management software designed to keep everyone in a nonprofit organization working toward the same goals.