3. For cause or without cause termination. Such a provision will clarify expectations and relationships between the parties. The employment contract should define the "cause." In cases where there is a provision for dismissal without notice for severance pay, the terms of severance pay should be explicitly specified. If an executive is dismissed for this reason or if the employment contract is not renewed at the end of his term of office, a severance pay is not payable. Since an employment contract is a contract and may be subject to contractual obligations, you must meet with a lawyer who can establish and/or properly negotiate the contract with your future manager. While this list is not exhaustive, you will be on the road to a viable and responsible contract with your new leader. Take your not-for-profit contract at: nonprofitfixer.com/products/executive-director-employment-contract-sampletemplate 1st compensation. Salary, benefits and other compensation must be set, as the compensation of the manager of your non-profit organization may be subject to an excessive performance review. The IRS imposes penalties for transactions that offer an "excess benefit" in terms of salary and other allowances. This is particularly true where the salary benefit given to the Executive Director is greater than the value of the services provided. When determining the CEO`s compensation, it is customary for board members to consider the salaries of similar directors who manage a non-profit organization of similar size, similar objectives, tasks, geographic area, although this is not a list of factors included. For example, the salary of an executive of a not-for-profit corporation in a rural Midwestern town will be different from that of a large East Coast city, even if the purpose and services offered are the same.

In accordance with IRS regulations, the IRS may impose fines on non-profit organizations and board members that allow excessive compensation for its manager. Fees, bonuses, taxable and non-taxable ancillary benefits can be verified in the event of termination. 1. Make sure you clarify the general tasks of the job. Like any contract, you want a "work volume," and that can be some very broad areas, but you should certainly clarify what the role does, and maybe what it does not. The job description is a separate document that becomes very specific. The employment contract may refer to the job description, which is a document that can change over time. 4. Disparage clause - A non-disappearing clause, which is generally included in a separation or transaction agreement, stipulates that an officer cannot say anything wrong with the employer, even if the comment is correct. Non-disappearance clauses are applicable, unless the Executive Director is summoned.

If the terms of the employment contract require severance pay to comply with the non-disappearing clause or unequivocally find that a violation of the non-separation clause results in the cancellation of severance pay or other benefits, the clause is optimized when payments or benefits paid to the manager are paid over a specified period.