A Board Member Applies During A Nonprofit Executive Director Search

It is not uncommon for a Board member to decide to apply for the nonprofit CEO/Executive Director position. If he or she gets the position, it may turn out fine. However, often he or she does not have the direct nonprofit experience and qualifications of other candidates.

It is generally best to have a full search by a professional search firm that works in the nonprofit sector to ensure objectivity. Even then, the process will need to be managed with the Board member recusing or preferably resigning from the Board. It can and certainly has worked out for many agencies. However, there can be politics and risks to the nonprofit.

Here are some scenarios that can occur when a Board member applies:

1. NO SEARCH: The Board applicant is in good standing with the Board and viewed as an excellent candidate. I have seen this play out when the Board member is voted in as the new executive director without any search. The Board candidate is a known and respected commodity. No search is deemed necessary. This is okay. However, there is no objectivity or view of the broader candidate field. This situation carries significant risks because often the Board member has no prior nonprofit administrative experience. However, it can work out depending on the Board member’s skills.
2. OWN SEARCH: Sometimes the Board does conduct a search. The Board/applicant may be the favorite candidate from the beginning. The Board wants to “run the traps” for other candidates. Even if the Board applicant is qualified for the role, it can lead to questions about an objective hiring process.
3. PROFESSIONAL SEARCH: The Board strives for an objective hiring process with a full search conducted by an executive recruiting firm. Whether the Board applicant is viewed as a good candidate or not, a professional firm will be able to identify the most qualified individuals for the role. If the Board member is selected, stakeholders can feel confident that s/he has the skills to succeed. However, if another candidate is hired, it can still sour the Board applicant’s relationship with the rest of the Board if not handled properly.

If the Board decides on a full search, here are issues to address:

1. Should the Board applicant recuse (withdraw) him/herself from any decisions on the search process? At a minimum, this action is needed. The problem is that, if s/he is not selected, s/he continues to have a potential conflict of interest with the new Executive Director (who beat him or her out for the position).
2. Should the Board applicant resign from the Board? This is typically viewed as a best practice. Then if s/he is not selected, s/he can be voted back on like any other potential Board member. This creates a stronger separation than simply temporarily withdrawing from the search process. It is a better solution than the recusal option, but the Board may lose a valuable member.
3. To the extent possible, the Board applicant should be treated like any other candidate. His or her qualifications should be judged using the same criteria used on all applicants. It helps if a professional search firm is hired to handle the search process as it can be more objective than the Board search committee.
4. The Board applicant will possess inside knowledge of the agency that other applicants do not have. This knowledge gives him or her an edge in the interview process. So, if there is to be an objective search, this needs to be taken into account in the interview process and questions.

When a Board member applies for a nonprofit Executive Director position, it gets complicated. A decision-maker on the search now becomes a candidate. The separation between hiring body and the applicants is blurred. Conflicts of interest and Board politics emerge.

The Moran Company is well equipped to conduct a comprehensive search that considers both external and internal candidates – including Board members. We take great care to review all qualifications impartially and compare them to other skilled applicants who have an interest in the role. Please contact us for a free consultation if we can be of service to your nonprofit.

by William J. Moran, J.D., M.S., Ed.
President, The Moran Company
“We Find Great Nonprofit Executives”

© 2022 The Moran Company