As the top executive of a non-profit organization, an executive director service agreement is a crucial document that outlines the rights and responsibilities expected of both the executive director and the non-profit organization. The executive director service agreement lays out the terms of the employment relationship and includes details concerning the compensation, scope of duties, and expectations around performance.
Here are some key elements that should be included in an executive director service agreement:
1. Compensation: The agreement should outline the executive director`s salary, benefits, and any bonuses that may be earned. It should also include information about pay raises, performance evaluations, and severance packages if the employment relationship terminates.
2. Scope of Duties: The agreement should define the executive director`s job description and responsibilities. It should establish metrics for performance evaluations and detail how the executive director`s success will be measured.
3. Term and Termination: The agreement should spell out how long the executive director will serve in the position and under what circumstances the employment relationship can be terminated. It should also detail what happens in the event of a change in executive leadership.
4. Confidentiality and Non-Disclosure: The agreement should include language around the confidentiality of organizational information, including donor lists, financial information, and operational procedures.
5. Conflict of Interest: The agreement should outline any potential conflicts of interest and establish procedures for addressing such conflicts. This includes disclosure of financial interests and potential conflicts of interest with the board of directors.
6. Intellectual Property Rights: The agreement should address who owns intellectual property created during the course of employment, including any patents, trademarks, or copyrights.
7. Governing Law: The agreement should specify which state or jurisdiction`s laws will govern the agreement and any disputes that may arise.
In summary, an executive director service agreement is a vital document that can help ensure a successful and fruitful collaboration between the executive director and the non-profit organization. By laying out clear expectations and obligations for both parties, the agreement can help avoid misunderstandings and disputes down the line.