501(c)(3) Organizational Structure

Organize a non-profit for maximum impact

A 501(c)(3) organization is a tax-exempt nonprofit corporation. The primary purpose of a 501(c)(3) is to serve the public, often in a benevolent capacity. It is generally funded by donations from individuals, organizations, government grants, and/or grants from foundations. The traditional organizational structure runs in the order of board of director, steering committees, CEO, department heads and employees.

Board of Directors

The board of directors generally consist of original visionaries and originators of the nonprofit. They provide the top level vision and direction of the nonprofit.

Steering Committees

Steering committees operate under the umbrella of the board of directors. A nonprofit is only as effective as its funding. So, the most important steering committee is usually the fundraising committee, followed by the program committee, which decides how to spend the funds.

CEO

The chief executive officer or CEO runs the day to day activities of the nonprofit. The CEO operates according to guidelines established by the board of directors.

Departments Heads

The department heads answer to the CEO in carrying out specific functions applicable to each department. Typical departments include human resources, accounting, marketing, outreach and information technology.

Employees

Employees answer to and carry out the task assigned by department heads. Depending on the size and the scope of the nonprofit, the employees' skill level can range from general labor to those with master's and doctorate degrees.

References

• Hurwit and Associates: Traditional Nonprofit Organizational Structure
• Free Management Library: Basic Overview of Nonprofit Organizations