The chairman of NPR's board of directors announced that he has accepted Vivian Schiller's resignation, effective immediately.
Activist James O'Keefe posted a hidden-camera video on Tuesday in which NPR executive Ron Schiller bashed the Tea Party movement as "racist" and "xenophobic" and said NPR would be better off without federal funding.
The video shows two activists posing as members of a Muslim group at a lunch meeting with Ron Schiller and another NPR executive, Betsy Liley. The men offered NPR a $5 million donation and engage in a wide-ranging discussion about tea party Republicans, pro-Israel bias in the media and anti-intellectualism.
The same activists have also targeted ACORN and Planned Parenthood in the past.
In a statement, NPR said, "We are appalled by the comments made by Ron Schiller in the video, which are contrary to what NPR stands for."
Ron Schiller, who is not related to Vivian Schiller, was already planning to leave NPR in May, but after the video was made public, he sent a letter saying his resignation was effective immediately.
Vivian Schiller was criticized for last year's firing of analyst Juan Williams after he said on Fox News that he feels uncomfortable when he sees people in "Muslim garb" on airplanes. She later said she was sorry for the way she handled Williams' dismissal but stood by her decision to fire him.
The Associated Press contributed to this story.
