Behind every thriving nonprofit is a strong, purposeful board. But not all boards function the same way, and not all nonprofits are alike. Whether you’re founding a new organization or refining your governance model, understanding the types of nonprofit boards is essential for legal compliance, strategic clarity, and mission success.
This guide explores the most common board structures and how they align with different types of nonprofits and IRS tax-exempt statuses.
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What Is a Nonprofit Board and Why Does It Matter?
A nonprofit board of directors is a group of people who help lead and guide a nonprofit. They make sure the nonprofit follows its mission, handles money responsibly, and stays legal. The board makes big decisions, like approving budgets, hiring the leader (often a CEO or Executive Director), and setting long-term plans.
If your nonprofit wants tax-exempt status (like a 501(c)(3)), the law says you must have a board. The board’s setup often depends on what kind of nonprofit you are. For example, a charity that raises money from the public needs a board that shows trust and good leadership. But a cemetary nonprofit might need a board that focuses more on managing land and finances.
7 Common Types of Nonprofit Boards and When to Use Them
1. Working Board
A working board helps make decisions and also does everyday tasks. Members might plan events, run programs, or even clean the office. This is common for new or small nonprofits that don’t have paid staff.
Example: A small animal rescue in Indiana, registered as a 501(c)(3), has a 7-person board that handles everything, like taking in animals, organizing fosters, and planning fundraisers. When they grow, they hope to hire staff and become a governing board.
2. Governing Board
This type of board focuses on big-picture leadership. They make sure the nonprofit follows laws and manages money well. Staff members, not board members, handle daily tasks.
Example: A nonprofit health group that gets government funding needs a governing board to oversee spending and make sure they follow rules.
3. Advisory Board
An advisory board gives advice but doesn’t vote or make official decisions. They’re helpful when a nonprofit needs expert input, like medical, education, or legal advice.
Example: A childcare nonprofit might have an advisory board made up of teachers and health experts who help guide programs without handling the budget or hiring.
4. Fundraising or Patron Board
These boards focus on helping the nonprofit raise money and find donors. They don’t always vote or make decisions, but they often have connections that can help bring in support.
Example: A local arts foundation may have a patron board full of well-known supporters who help bring in donations for a big campaign.
5. Managing Board
A managing board steps in when there’s no staff leader or during a time of crisis. They may run the nonprofit temporarily until new leadership is in place.
Example: If the executive director of a health-related fund resigns suddenly, the managing board steps in to keep things going until a new director is hired.
6. Honorary Boards
Honorary boards don’t make decisions or run programs. Instead, they lend their names to help boost the nonprofit’s visibility. These boards may include retired leaders, celebrities, or community heroes.
Example: A national nonprofit may include famous names on its honorary board to help with public trust and awareness.
7. Hybrid Board
A hybrid board mixes different types. For example, a board might make decisions but also have smaller teams that focus on fundraising or give expert advice.
Example: A trade group that also runs education programs might have a main board and a few extra groups to support specific needs.
Board Type Comparison at a Glance
| Board Type | Best For | Can Make Legal Decisions? | Common 501(c) Types |
| Working | New/Small Nonprofits | Yes | 501(c)(3), (c)(5), (c)(13) |
| Governing | Larger, Staffed Nonprofits | Yes | All Types |
| Advisory | Expert Advice Without Voting | No | (c)(4), (c)(6), Child Care Orgs |
| Fundraising | Donor-Focused Nonprofits | Varies | (c)(3), Private Foundations |
| Managing | During Staff Changes/Crisis | Yes (Temporary) | (c)(27), Mutual Funds |
| Honorary | Public Support and Visbility | No | National or High-Profile Orgs |
| Hybrid | Complex Nonprofits with Mixed Needs | Yes | Irrigation, Education, Trade Orgs |
How Tax-Exempt Status Shapes Your Board Structure
The IRS lists 29 types of tax-exempt groups under section 501(c). Each type has different rules that can affect how your board should be set up. Here are a few examples:
- 501(c)(3) Charitable Groups need boards that focus on fundraising, mission, and avoiding conflicts of interest. These could include animal rescues, farms, or nature groups.
- 501(c)(4) Social Welfare Groups may support advocacy and public policy. Boards often include legal or government experts.
- 501(c)(5) Labor or Farm Groups often use boards elected by members to represent different voices.
- 501(c)(6) Trade or Business Groups need board members with industry experience and policy knowledge.
- 501(c)(13) Cemetery Companies need boards focused on finance and legal rules for burial and land use.
- 501(c)27 Rise Pools (insurance-like nonprofits) need boards that understand finance, laws, and risk.
See the IRS list of exempt classifications.
Tip: Choosing the wrong board can slow down or lead to legal trouble. Make sure your board setup fits your nonprofit’s classification.
Starting a Nonprofit? Set Your Board Up for Success
Your board is the foundation of your nonprofit. A strong board helps you get tax-exempt status, build trust, and grow your impact. Don’t just pick people who care—pick people who fit your goals, IRS status, and mission.
For example, if you’re starting a healthcare nonprofit under the Affordable Care Act, your board might need donors or policy experts. If you’re starting a fund, you’ll need people who know how to handle money and follow laws.
The Right Board Powers the Right Mission
There’s no one perfect type for every nonprofit. Your board should match your mission, size, resources, and legal status. Whether you’re running a food bank, a co-op, or a community garden, the right board helps you lead with clarity and purpose.
Need Help Managing Your Board?
Boardable makes it easier to run your board. You can manage meetings, track documents, and keep everyone organized—all in one place. Whether you’re a new nonprofit or already growing, we’re here to help.
Explore Boardable’s Board Management Platform and simplify your boardroom today.
