A Guide for Nonprofit Boards
A strong chief executive can take your mission further, faster—but only if your board is actively supporting, assessing, and guiding their leadership. One of the most important (and often overlooked) responsibilities of a nonprofit board is evaluating the CEO.
Yet, we see it all the time: boards delaying reviews, relying on vague impressions, or skipping the process altogether. Not because they don’t care, but because they don’t have a simple, structured way to do it well.
Evaluating the chief executive doesn’t have to be complicated. BVU has worked with hundreds of boards and CEOs, and we’ve distilled the process into eight clear steps that promote transparency, accountability, and growth – without creating unnecessary stress.
1) Appoint a Board Leader to Guide the Process
Don’t let CEO evaluation be a solo effort or a last-minute scramble. Assign a board member—typically the board chair, governance chair, or a designated evaluation lead—to manage the process and timeline.
A small task force can help with input and confidentiality, but it helps to have one clear point person steering the ship.
2) Meet with the CEO to Align on the Process
This isn’t something you spring on your executive director. Set the tone early by inviting them into the process.
Together, clarify:
- What the evaluation will include
- The timeline and milestones
- What materials will be used (e.g., the CEO’s job description, their annual goals, key performance indicators, and/or a self-assessment)
This step reinforces that the process is collaborative, not punitive.
3) Review or Develop the Right Assessment Tool
Your assessment should reflect the CEO’s actual responsibilities—not a generic checklist. Strong tools typically evaluate:
- Strategic leadership
- Operational and financial management
- Relationship with the board
- External relations and fundraising
- Progress toward organizational and personal goals
It should be easy to complete and allow for honest, confidential feedback. A combination of rating scales and open-ended comments often works best.
4) Gather Board Feedback
Decide whether the full board or just the executive committee will complete the assessment. The full board tends to give a more well-rounded view—but if confidentiality is a concern, a smaller group may be more appropriate.
Make sure all participants have access to:
- The evaluation tool
- The CEO’s goals and any supporting documents
- Clear instructions and deadlines
The more prepared your board members are, the more thoughtful and useful their input will be.
5) Conduct a Compensation Review (every 2 years)
Boards have a legal and ethical responsibility to set fair and reasonable compensation. This doesn’t mean paying the highest salary—it means paying appropriately based on the role, scope, and market benchmarks.
Use reputable nonprofit compensation surveys, consider performance, and ensure the board formally approves any changes. It’s about attracting and retaining top talent while maintaining public trust.
6) Analyze the Results and Draft a Summary
Once you’ve gathered the data, look for themes:
- Where is the CEO excelling?
- Where might they benefit from more support?
- What progress has been made toward organizational goals?
- Are there opportunities for professional development?
Summarize these findings clearly and constructively. If compensation adjustments are being recommended, include that context as well.
7) Deliver Feedback Thoughtfully
This conversation matters. The board chair (and/or evaluation lead) should meet one-on-one with the CEO to:
- Share key findings from the evaluation
- Offer encouragement and constructive feedback
- Discuss any areas for growth or support
This is also a great time to talk about the year ahead—goal setting, resources, and how the board can be a more effective partner.
8) Report Back to the Full Board
Transparency matters—without breaking confidentiality. The full board should hear a high-level summary of the process, the outcomes, and any next steps.
This keeps everyone aligned and reinforces a culture of accountability and continuous improvement—at every level of the organization.
Succession Planning Is Part of the Picture
CEO evaluation and succession go hand in hand. Even if your executive isn’t planning to leave anytime soon, your board should always be thinking a few steps ahead.
Your role includes:
- Having an emergency succession plan in place
- Creating a process for future searches (e.g., forming a search committee)
- Ensuring organizational knowledge is documented and not just held by one person
Talk about it now—before you need it.
Partnership, Not Policing
Evaluating the chief executive is about more than performance metrics. It’s about strengthening the relationship between the board and the CEO. When done right, it’s a chance to align on vision, surface support needs, and make sure everyone is rowing in the same direction.
If your board hasn’t done an evaluation in a while or isn’t sure where to start, reach out. BVU offers templates, coaching, and facilitated sessions to help boards and CEOs approach this process with clarity and confidence.