The right board for your nonprofit

Building a strong nonprofit board isn't one-size-fits-all. The structure that works for a well-established organization with a full staff might be overkill for a scrappy startup still finding its footing. Similarly, a hands-on approach that serves a small nonprofit well could hold back a larger organization ready to scale.

The right board structure depends on where your nonprofit is in its journey, how many resources you have, and what your goals are. Get it right, and your board becomes a powerful asset that drives growth and accountability. Get it wrong, and you risk bottlenecks, burnout, and missed opportunities.

Let's break down three common nonprofit board models so you can figure out which one makes the most sense for your organization.

Policy Board: Strategic Oversight for Established Nonprofits

A policy board focuses on high-level governance rather than day-to-day operations. This structure works best for more mature nonprofits that have staff, volunteers, and established programs in place. The board's job is to provide strategic direction, ensure accountability, and keep the organization moving toward its long-term goals.

What Does a Policy Board Do?

Policy boards set the course but don't steer the ship. They make big-picture decisions, approve budgets, and monitor financial health. Members act as fiduciaries, meaning they have a legal responsibility to protect the organization's assets and ensure it operates within the law.

Key responsibilities typically include:

• Approving annual budgets and reviewing financial statements
• Overseeing audits and ensuring compliance with tax regulations
• Setting long-term strategic goals and evaluating progress
• Cultivating donor relationships and contributing financially
• Hiring and evaluating executive leadership

Because policy boards deal with finances, compliance, and strategy, they benefit from having members with accounting, legal, or fundraising expertise. These boards also tend to have formal governance structures, with clearly defined roles and committees.

When Does a Policy Board Make Sense?

This model is ideal when your nonprofit has moved beyond the startup phase. You've got staff handling operations, volunteers running programs, and a steady stream of clients or beneficiaries. Your board doesn't need to stuff envelopes or coordinate events—they need to ensure the organization stays financially sound, legally compliant, and focused on its mission.

If your nonprofit manages a significant budget, an endowment, or investments, a policy board provides the checks and balances you need. It's also the right choice if you're looking to attract high-profile board members who want to contribute their expertise without getting involved in operational tasks.

Working Board: Hands-On Leadership for Startups and Small Nonprofits

A working board is exactly what it sounds like: board members roll up their sleeves and get things done. This structure is common in early-stage nonprofits or small organizations that don't have the staff or volunteer base to handle everything on their own.

What Does a Working Board Do?

Working boards wear multiple hats. One day, they might be drafting a fundraising strategy. The next, they're setting up tables at an event or writing social media posts. This model requires flexibility and a willingness to jump between strategic thinking and hands-on execution.

Common responsibilities include:

• Defining the organization's mission, values, and goals
• Managing day-to-day operations and program delivery
• Fundraising, donor outreach, and event planning
• Establishing a long-term revenue model
• Ensuring compliance with IRS tax-exempt requirements

Because working boards handle both governance and operations, members need to be comfortable switching gears. They also need to understand the basics of nonprofit compliance, including when activities might trigger unrelated business income tax (UBIT) liability.

When Does a Working Board Make Sense?

If your nonprofit is just getting started, a working board is often the most practical choice. You need people who are committed to the mission and willing to do whatever it takes to get things off the ground. This structure also works for small nonprofits that operate with minimal staff and rely heavily on volunteers.

The downside? Working boards can lead to burnout if members are stretched too thin. It's also easy for strategic planning to take a backseat when everyone is focused on urgent tasks. If your organization grows, you'll eventually need to transition to a different model.

Hybrid Board: Flexibility for Growing Nonprofits

A hybrid board blends elements of both the policy and working models. It's a flexible structure that allows your board to adapt based on the organization's needs at any given time.

What Does a Hybrid Board Do?

Hybrid boards typically focus on high-level governance but step in to handle specific operational tasks when necessary. For example, a hybrid board might oversee strategy and finances while also managing executive hiring or stepping in during a leadership transition.

This structure can be especially useful if your nonprofit is in a growth phase. You've moved beyond the startup stage, but you're not quite ready for a fully hands-off policy board. Or maybe your organization is small enough that certain tasks—like reviewing bank statements or approving disbursements—still require board involvement to ensure proper oversight.

When Does a Hybrid Board Make Sense?

Hybrid boards work well for nonprofits that are transitioning from a working board to a policy board. They're also a good fit if your organization operates with a lean staff and needs board members to occasionally fill gaps in accounting, fundraising, or operations.

The key to a successful hybrid board is clear communication. Board members need to know when they're expected to be strategic advisors and when they need to roll up their sleeves. Without that clarity, you risk confusion and inefficiency.

Making the Transition

If your nonprofit is shifting from one board structure to another, it helps to formalize that change. Updating your bylaws or governance policies ensures everyone is on the same page about roles and expectations. It also makes it easier to recruit new board members who understand what they're signing up for.

For example, if you're moving from a working board to a policy board, you might need to recruit members with specific expertise in finance, law, or fundraising. Community leaders who wouldn't have been interested in a hands-on role may now be open to joining a board focused on strategic oversight.

On the flip side, if you're building a working board, you'll want to attract people who are passionate about your mission and willing to contribute their time and effort in a more active capacity.

Finding the Right Fit

Choosing the right nonprofit board structure isn't a one-time decision. As your organization evolves, your board should too. A working board might be perfect when you're starting out, but as you grow, a policy or hybrid model could better serve your needs.

The important thing is to be intentional about your structure. Define roles clearly, communicate expectations, and make sure your board has the right mix of skills and expertise to support your mission.

If you're unsure which structure makes the most sense for your organization—or if you need help navigating governance and compliance—we're here to help. Contact us to discuss how we can support your nonprofit's financial health and long-term success.