Once the contract has been approved by the CEO, make sure it is voted on by the entire board of directors. Since an ad hoc committee often concludes the treaty, many agents forget to get involved in the final stage. According to Englund, the treaty could not be fully voted on because it indicates a non-majority agreement. That`s the end of it. The contract should provide for severance pay terms and all three types of terminations — for good reason, without reason or resignation — and provide for the provisions for each. Jacobs stressed the importance of including the redundancy clause, as employment contracts are also a priority in states where workers work “as they please.” But I firmly believe that this part of the board`s responsibility is too often overlooked. Yes, board members are diligent and volunteer. But this — the direction and supervision of your leader — is one of the most important roles you have. He was an executive director who has made his career leading a non-profit organization for the past 20 years.
Bonuses. Be sure to describe in detail the methods of non-remuneration. In a 2001 survey conducted by the Association of Fundraising Professionals, 29% of respondents who manage said they had received a bonus the previous year. Just over 7% of them received a bonus of 10 percent or more of their base salary. Some of the more common bonuses reward longevity and performance (bonuses related to fundraising goals are generally considered unethical, according to the Association of Fundraising Professionals). Non-cash bonuses may include education allowances. “When I think of evaluation standards, I suggest thinking about incentives,” says David Edell, president of DRG, a recruiter for nonprofits in New York. The contract should contain a timetable or a list of performance expectations that relate to certain incentives, he said.
Non-profit organizations should establish a formal employment contract in all but the simplest of labour relations.