What Is the Hierarchy of a Nonprofit Organization?

Nonprofit organizations operate much like for-profit ones. There are leaders, managers, and individual contributors that all work together to drive success.

In this article, we’ll do a deep dive into the hierarchy of a nonprofit organization and why understanding these positions is important. We’ll also share sample structures so you can organize your nonprofit’s leadership and staff in a way that works for you.

Let’s get started!

There’s so much you can learn about an organization by looking at its hierarchy, especially at nonprofits.

Organizational hierarchies allow you to quickly see the size and complexity of the nonprofit while also getting a sense of its reporting structure and overall governance.

A clear nonprofit hierarchy is essential to drive clarity in day-to-day operations, which is especially important when you’re trying to start a nonprofit from scratch or if you’re a new hire trying to learn the ropes.

A nonprofit hierarchy can teach you how to navigate reporting relationships, help you understand what work falls under which area, and give you clues about who to reach out to if you have questions.

A clear hierarchy can also show donors and stakeholders that there is a good balance of power and a streamlined reporting structure within the organization. It also helps your board, employees, and constituents understand how the work connects to the greater mission.

As staff, understanding the hierarchy of your nonprofit can help you be more effective at your job and better contribute to the overall success of the organization. It will also help you avoid missteps and delays that occur from asking the wrong people for guidance. Learning the structure of a nonprofit organization is a great way to set yourself up for success.

Each nonprofit organization's structure is a little different, but they all have three core elements: governance, administration, and programs.

Within these areas, there will be multiple functions, and all the work should contribute to advancing the nonprofit’s mission.

Governance

Like for-profit companies, nonprofit organizations have a board of directors.

This is the organization’s governing board, which provides strategic and financial oversight of the nonprofit’s operations.

A nonprofit’s board of directors helps determine what programs and projects will be funded for the year, ensures that the organization is abiding by its bylaws, provides fundraising support, and more. They also are responsible for hiring and overseeing the executive director.

Board positions are volunteer-based, and the size of your board will depend on the size of your organization, as well as local and federal requirements. At a minimum, you should have at least three members of the board who meet at least once per year based on federal law.

The executive director has to answer to the board, making them the highest authority in the nonprofit, even if they aren’t directly on the payroll. You can see this illustrated in the Creately template below.

An organization’s governing board has the final say on what goes on at a nonprofit at a high-level, though keep in mind they do not have to approve every decision and initiative. That falls under the next level—your nonprofit’s administration.

Administration

The administration at your nonprofit provides clear guidance for what you hope to achieve in the year and how you will achieve it. They set the strategic plan for the year, including programming, budget and staffing needs, and more.

Simply put, the nonprofit administration are the ones running the show and setting the tone for how you will show up and make a difference in both your programs and your fundraising efforts.

The nonprofit administration is often led by an executive director, who reports directly to the board of directors. In addition to the executive director, chiefs, advancement vice presidents, and development directors will typically comprise the administrative team.

These are the decision-makers and the reviewers. The people executing the nonprofit organization’s important work are part of the next group.

Programs

Nonprofit program staff are everyone else in your organization. They are those mid-level management, individual contributors, and volunteers that ensure all the work is done. In general, sample programs within your organization can include:

• Advancement
• Marketing
• Community Relations
• Human Resources
• Finance

These groups are all reflected in your organization’s hierarchy, so you can quickly look at staff by function. Common roles within these functions could be grant writer, volunteer coordinator, social media marketer, and more.

For example, Active Minds offers various programs concerning mental health issues. They offer support in K-12, provide outreach in college, advocate for policy change, and more.

Each of these programs is unique and has its own dedicated budget and resources to support it, and all of that is reflected in the hierarchy of the organization. These roles report to the nonprofit administration team.

Now that you know the three different areas of a nonprofit organization’s structure, it’s time to create a hierarchy of your own.

Wherever you are on your nonprofit journey, you need to get your hierarchy all outlined to drive clarity in your organization and to identify any gaps that could help your nonprofit function more efficiently.

Creating Your Internal Hierarchy and Organizational Structure

As you’re looking to define the hierarchy of a nonprofit, here are a few steps to keep in mind.

1. Make a list. Write down the different functions and the staff members in your organization. Include their names, titles, and other information that may be helpful. Get everything down before you worry about sorting it.‍
2. Organize the list by function. If your organization is larger, you can start by putting functions together before turning to the reporting structure. This is the most crucial step of the process, so make sure that it’s done correctly.
3. ‍Design your org chart. The most common type of org chart is top-down, resembling a triangle—though don’t forget to add the governance! You can also have circle org charts, matrixes, and more. More on the different types below.
4. ‍Add your data. Enter the names and titles of your organization’s staff. As you add the information to the hierarchy, make sure that the reporting structure is accurate, easy to read, and clear to understand.
5. ‍Adjust formatting. Once all the data has been added, adjust the formatting to make the chart even clearer. Some people like to color code the different functions, while others prefer to simply bring the nonprofit organization structure up to brand standards. Whatever you do, make sure it’s easy to understand.
6. ‍Review and make updates as needed. Remember, the hierarchy of your organization is living and breathing. It evolves as the organization evolves, so make sure to adjust when people join, leave, or changes are made to the nonprofit organization structure.

When you are looking to outline the hierarchy of a nonprofit, the hard part is putting pen to paper. It can be intimidating, but the document will be so important to the organization, especially as you look to create a support tool for others or a resource that can help your organization land external funding.

By following these steps, you’ll take the guesswork out of setting up a nonprofit organization structure.

Note on Nonprofit Governance

Nonprofit governance, like the board of directors, is at the top of the chain, above the organization’s leader. Some org charts will leave them off, while others include them for visibility.

It’s important to keep in mind that regardless of whether you add them to the hierarchy of your nonprofit, nonprofits are required by the IRS to have a board of directors. All nonprofit boards need to have at least three members, though you’ll also want to consult any local regulations to ensure you do not need additional representation.

If you have any question on the legal requirements, you can always consult a nonprofit lawyer or other professional.

Once you have the board of directors set, you can add them to the nonprofit organization structure or simply list them elsewhere. While they are critical decision-makers at your organization, most associates will not interface with them on a day-to-day basis.

Always have a list of your board members handy though, as some grant applications require that you include them in the application process.

When you’re looking into how to represent the hierarchy of a nonprofit organization, you have options. There are different types of nonprofit organizational structures that you can choose from, and four of the most common are:

• Top-down
• Flat
• Matrix
• Circle

Select the one you think will work best for your organization. You can always refine the design later.

Top-down Organization Chart

The top-down organization chart is one of the most common types of org charts as it is very easy to understand.

It resembles a triangle, with the executive director or CEO at the top. The rest of the administration and programs cascade down, with the highest number of employees at the base.

‍SketchBubble has great templates available that can help you start with your top-down organization chart. The more levels you have in an organization, the bigger your chart and the wider the triangle will become.
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Flat Organization Chart

A flat organization chart includes the executive director at the center of the chart, and the organization builds out horizontally from there.

‍Creately has a great example of this below. They have even color-coded the organization chart so you can see which areas are grouped together.
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Visually, this works well if you do not have that many layers of your organization or too many employees. If you do, you can still use this type of org chart, but you’ll want to make them collapsible so it’s easier to navigate.

Circle Organization Chart

The circle organization chart is similar to the other types. Instead of boxes, it uses circles to organize its data. As you build out the circles, you can see areas of the organization that may overlap across projects.

You can use text or images to show the relationships between projects in a circular org chart, which you can see represented below in this great template by SlideTeam.
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The circle nonprofit organization chart is great for visual learners who like to see the interconnectedness of a company’s hierarchy. It is great for smaller orgs or individual projects.

Matrix Organization Chart

The matrix organization chart is another great way to highlight cross-functional collaboration within your nonprofit organization and on specific projects.

It highlights what different people and functions are involved visually within the organizational structure for nonprofits, helping you see not only who is involved but what functions are involved.
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Creately offers a template for a basic matrix organization chart that can be used by nonprofits to outline their hierarchy while doing a deep dive into a specific project.

You can also access our Organizational Chart Templates. The template is made in Canva, an an easy-to-use creative design tool. You can jump right in, change colors, add your logo, and adjust the copy so it fits your brand.

Having a clear organizational structure for your nonprofit is critical for your overall success.

Not only can employees have clear guidance on where to go if they need support, but it also can help foster collaboration and identify any gaps or inefficiencies in the organization.

Don’t wait until you need the structure for something to create one! There are plenty of free tools and resources available to help you get started on creating the structure of your nonprofit organization. It’s a worthwhile endeavor and one that will yield dividends down the line.