The Two Sides of Leadership: The Ups and Downs of Being an Executive Director

 Greg DeShields

An Executive Director (ED) role can be among the most rewarding yet demanding organizational positions. Whether in the nonprofit, private, or public sectors, an ED holds significant responsibilities that extend across every facet of the organization, from strategic direction to financial oversight. However, with great responsibility comes even greater pressure. 

While being an ED comes with immense leadership opportunities and the chance to drive real change, it also brings challenges that can test even the most seasoned professionals. One of the most challenging things for an executive director is balancing authenticity with being seen as a trusted and professional leader. In this blog, I draw inspiration from the lessons learned and experiences that have shaped my path as an Executive Director.  I will dive into the ups and downs of being an Executive Director and examine what it takes to navigate the highs and lows of this critical role.

According to Zippa Career Expert, here are interesting demographics and statistics for the EDs in the United States, using a database of 30 million profiles. For accuracy, the estimates are verified against Bureau of Labor Statistics (BLS), Census, and current job openings data. 

  • BLS predicts ED positions to grow by 4% between 2019 and 2029
  • There are over 50,303 executive directors currently employed in the United States.
  • 53.0% of all EDs are women, while 47.0% are men.
  • The average ED’s age is 49 years old.
  • Common ethnicity of EDs is White (71.0%), Hispanic or Latino (11.2%), Black or African American (7.6%) and Asian (5.0%).
  • EDs are in demand in New York, paying an annual average wage of $150,937, the highest in the US.
  • Connecticut is the best state for EDs to live in. The state offers a blend of professional opportunities, a supportive environment for growth, and an excellent lifestyle for executive directors seeking to balance career and personal life. It’s an ideal state for leaders looking to

So, what is the upside of being an executive director?


One of the most fulfilling aspects of being an ED is the ability to lead and influence the organization's direction. You are in the driver’s seat, making key decisions that determine the overall success and growth of the organization. Whether it's expanding services, introducing new programs, or leading major initiatives, the ED has the power to create a significant and lasting impact. The ability to shape the organization's mission and values gives the ED a sense of purpose and accomplishment, especially when these efforts align with personal values.

No two days are alike for an Executive Director. The role is dynamic and ever-changing, requiring the ED to juggle various tasks such as managing finances, overseeing operations, developing staff, and fundraising. Each day brings new challenges, whether troubleshooting an operational issue, solving a financial dilemma, or addressing stakeholder concerns. The variety keeps the role exciting and mentally stimulating, which many EDs find particularly fulfilling.

As the face of the organization, speaking at conferences, meetings, and in the media, an ED often interacts with a diverse group of high-level stakeholders, including board members, donors, community leaders, and industry experts. These connections provide invaluable networking opportunities and help build relationships crucial for the organization’s growth and sustainability. This also allows the ED to become a thought leader in their field, gaining recognition and influence within both their sector and the broader community.

Serving as an Executive Director is often a stepping stone to other high-level leadership positions, whether in a similar capacity in a different organization or as a board member. The experience gained in managing an entire organization, particularly in leadership, finances, operations, and stakeholder relations—provides a strong foundation for future career opportunities. EDs often develop a robust skill set that makes them highly attractive to other organizations or sectors, increasing their professional growth and career trajectory.

Today, EDs must embrace technology, foster innovation, and leverage AI to stay ahead of the curve, drive efficiency, and unlock new opportunities in an ever-evolving landscape.  EDs use AI in various ways to enhance decision-making and streamline operations. 

For example, many leverage AI-powered analytics tools to analyze data, predict trends, and make more informed strategic decisions. AI is also being used to automate administrative tasks, like scheduling, reporting, and customer service, allowing executive directors to focus more on leadership and growth. Additionally, AI-driven marketing tools help personalize customer experiences, improving engagement and driving business results.

For many EDs, there’s an immense sense of personal fulfillment in knowing they contribute to a cause they believe in. Leading an organization, particularly in the nonprofit or social sectors, can make a tangible difference in the community. Whether helping to address homelessness, providing education, or advocating for environmental sustainability, an ED’s work often carries a deep sense of purpose and pride.

Now, what are the downsides of being an executive director?


With outstanding leadership comes tremendous pressure. The ED is ultimately accountable for the success or failure of the organization. This responsibility can feel overwhelming, especially regarding managing finances, ensuring programs meet their goals, or navigating crises. 

Balancing the organization’s needs with financial constraints or operational issues can sometimes feel unmanageable, particularly in challenging economic climates or during times of change.

Currently, ED’s are navigating a rapidly changing landscape regarding grant access, certification, and accessibility, especially in light of recent executive orders and legislation. These new policies are reshaping how organizations apply for funding, meet compliance standards, and ensure their services are accessible to all. EDs are tasked with staying informed and adapting their strategies to align with these evolving regulations, ensuring their organizations remain competitive and compliant while maximizing opportunities for growth and impact.

Financial constraints are a constant concern in the nonprofit sector. While an ED may have grand ideas for advancing the organization's mission, limited budgets and fundraising pressures can make these ideas difficult to execute. The struggle for funding is a perennial challenge, and the ED must constantly seek new ways to generate revenue, often at the expense of time and personal energy. This financial strain can sometimes stifle innovation or slow the progress of important projects.

Many EDs face a significant challenge in managing their relationship with the board chair and directors. These relationships are often interdependent and require constant communication and collaboration. However, misalignment between the ED and the board chair or other members can create tension. Sometimes, a board chair's incursion can interrupt the board's work. 

The ED is expected to manage the organization’s day-to-day activities and navigate the sometimes tricky dynamics with the board. Disagreements on strategy, funding, or governance can lead to conflict, making this aspect of the job particularly taxing. 

Despite leading an entire organization, the ED is often the final decision-maker. This requires resilience and discretion; finding a trusted network or mentor can be crucial for managing the emotional weight of the job.

According to the Nonprofit Leadership Alliance, nearly 50% of nonprofit executives report experiencing burnout at some point. This percentage may be even higher in sectors where the workload is heavy and the emotional toll of the work is significant.

A 2021 Leading with Purpose report from BoardSource highlighted that nearly 40% of executive directors reported feeling more stressed than in previous years.

The Stanford Social Innovation Review published findings in 2020 showing that executive director burnout costs organizations regarding leadership turnover, with 36% of leaders saying they’ve left their positions due to burnout.

Time for an Executive Director Change


 As an executive director, recognizing when it’s time to transition from your role requires a blend of personal reflection and an honest assessment of the organization's needs. Stepping down from a leadership position is a significant decision that demands careful consideration. It’s crucial to approach this transition thoughtfully, ensuring that you and the organization are fully prepared for the next leadership chapter and continued success. Make sure there is a successful transition where you and the organization are prepared to hand over the reins smoothly, with a clear vision for the future.

On another note, CompassPoint Board Café details a surprising finding from a recent national study: nearly one-third of nonprofit executive directors are fired or forced out by the board. 

If, after appropriate investigation and deliberation, a board feels that the executive director should leave the organization, it may choose first to have the board officers approach the director and suggest that a resignation be welcomed. 

Many executive directors under pressure prefer resignation to firing, and some board members feel that resigning paints the organization in a better light than terminating.

Being an Executive Director is indeed both incredibly rewarding and profoundly challenging. The opportunity to make a difference, lead an organization, and influence a sector is invaluable. However, the responsibilities and pressure associated with the role are significant, and success in the long run requires a delicate balance of leadership, communication, and self-care. 

Being an ED can be the ultimate fulfillment for those who thrive on challenges, enjoy solving complex problems, and are passionate about their mission. But it’s essential to recognize the role's ups and downs and take steps to manage the stress and demands that come with it.

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