HR policies might not be the most exciting part of running a nonprofit, but they’re one of the most important. They keep your team safe, supported, and clear on how things work, so you can focus on your mission without getting slowed down by confusion or mistakes.
If you're like most nonprofit leaders, you probably started with passion, not paperwork. That’s totally normal. But as your organization grows, you need a strong foundation that helps you lead well and protect your people. That’s what good HR policies do, they set expectations, support fair treatment, and help you handle tough situations with confidence.
In this guide, we’re going to walk through the key HR policies every nonprofit should have. We’ll also cover how to handle things like volunteers, training, compliance, and more, without getting lost in legal talk or red tape.
Why HR policies are essential for nonprofit organizations
Running a nonprofit takes heart, but heart alone doesn’t solve every challenge. HR policies help fill in the gaps. They give your team something steady to rely on, especially when things get tricky. Whether it’s a hiring decision, a workplace conflict, or just knowing how to request time off, clear policies remove the guesswork.
And here’s something a lot of folks overlook: good HR doesn’t just protect your team, it protects your mission. When your people feel safe, respected, and informed, they’re more likely to stick around and do their best work. That means more impact, less turnover, and fewer surprises.
Nonprofits also face unique challenges that for-profits don’t. Smaller budgets. Volunteers who work side-by-side with paid staff. Teams wearing multiple hats. That’s exactly why your policies need to be written with your nonprofit reality in mind, not copied from a corporate manual.
So if your HR setup has been “figure it out as we go,” don’t worry. You’re not behind, you’re just ready for the next step. And that’s what we’re here to help with.
Creating an employee handbook for your nonprofit
Think of your employee handbook as your organization’s “how we do things here” guide. It doesn’t have to be fancy, but it does need to be clear. This is where you set expectations, explain how your team works, and give people something solid to turn to when they have questions.
At minimum, your handbook should include:
- Your code of ethics and conflict of interest policy – Let your team know what values you stand by and what to do if there’s ever a conflict.
- Employment classifications – Spell out who’s full-time, part-time, or contract, and what that means in terms of benefits and responsibilities.
- Wage and hour info – This includes pay structure, breaks, and overtime rules. Yes, even if your team is small.
- Time off and paid time policies – Vacation, sick time, holidays, be clear about what’s offered and how to request it.
- Anti-harassment and discrimination policies – Every team deserves a safe, respectful work environment. Put it in writing.
- Disciplinary steps – If something goes wrong, what happens next? Set the tone for accountability without fear.
Your handbook isn’t just for the HR team, it’s for everyone. Make it easy to read, update it regularly, and walk through it with each new hire. The goal is to make sure no one’s left guessing about how things work.
Code of ethics and conflict of interest policies
Every nonprofit is built on trust. You trust your team to do the right thing, and your community trusts you to stay focused on your mission. That’s where a strong code of ethics comes in, it’s your chance to put those values into words.
Your code of ethics doesn’t have to be long or full of legal terms. Just be real about what matters to your organization: honesty, transparency, respect, fairness. Set expectations for how your team should act with donors, clients, partners, and each other.
Now, let’s talk about conflict of interest. This sounds complicated, but it’s really about protecting your mission from personal agendas. For example, what happens if a board member’s family owns a company you want to hire? Or if someone on staff wants to start a side hustle that overlaps with your work?
A good conflict of interest policy lays out:
- What counts as a conflict
- How to disclose it
- What happens once it’s been flagged
The point isn’t to catch people doing something wrong, it’s to create a culture where people feel safe speaking up. That’s what keeps your team and your reputation strong.
Training and development programs to support employees
Nonprofit teams are passionate, but they’re often stretched thin. That’s why investing in training and development matters so much. It helps your team grow into their roles, feel more confident, and stay connected to the work they care about.
Start with the basics: make sure every new hire gets a proper onboarding. Show them how things work, introduce them to your tools and systems, and explain your policies clearly. It doesn’t have to be formal, just consistent.
From there, think about what skills would really support your staff. Maybe it’s donor communication, grant writing, volunteer coordination, or how to handle tough conversations. Whatever it is, build space for it. Even a short monthly training or peer-led session can go a long way.
Don’t forget about your volunteers, either. They represent your mission, too. A little bit of training helps them feel prepared and included.
And remember: professional development doesn’t have to be expensive. There are free webinars, nonprofit support networks, and even grant funding available for staff education. When your people grow, your mission grows with them.
Managing employees and volunteers effectively
In nonprofits, staff and volunteers often work side by side. That’s one of the things that makes our work special, but it can also get tricky if expectations aren’t clear. Good HR policies help you manage both groups fairly while honoring the different roles they play.
Start by making sure everyone knows where they fit. Employees have legal rights and responsibilities, like pay, benefits, and scheduled hours. Volunteers don’t get paid, but they still deserve structure, respect, and guidance. The key is to write clear policies for each group so nobody feels lost or overlooked.
Think about what your volunteers need to succeed: a simple onboarding process, someone they can go to with questions, and tools to help them contribute in meaningful ways. A quick how-to guide or training session can make a huge difference in how confident and connected they feel.
And for your employees, give them space to lead. Trust them to manage projects, work with volunteers, and bring up ideas. The more ownership they have, the more invested they’ll be in your mission.
Bottom line: when your team, paid or unpaid, feels supported and valued, your entire organization becomes stronger.
Compliance with employment law and applicable laws
Even if your nonprofit is small, you’re still responsible for following employment laws, just like any business. That means things like how you pay your staff, what benefits you offer, and how you handle time off all need to follow the rules. It can feel overwhelming, but the goal is simple: treat people fairly and protect your organization from legal trouble.
Here are a few key areas to stay on top of:
- Wage and hour laws – Know the difference between salaried and hourly employees, and make sure you’re paying overtime when required.
- Retirement plans and benefits – If you offer them, make sure they’re clearly explained and legally compliant. You’re not required to offer everything, but what you do offer needs to be handled properly.
- Paid time off and leave policies – Some states have required sick leave or family leave laws. Others don’t. Either way, it’s smart to be clear about what your team can expect.
- Worker classification – Don’t mix up employees and contractors. It’s one of the most common (and costly) mistakes.
If you’re not sure about something, you don’t have to figure it out alone. Many states offer free resources for nonprofits, or you can check with a local HR consultant. Taking a little time to double-check your policies now can save you a lot of stress down the road.
Recruitment, hiring, and background checks
Hiring in a nonprofit isn’t just about filling a role, it’s about finding people who believe in your mission. But even when you’re hiring with heart, you still need a smart, fair process to make sure you're bringing in the right people and protecting your team.
Start with a clear job description. Don’t just list duties, explain how the role fits into your mission and what kind of person would thrive in it. This helps attract candidates who care, not just those looking for “any job.”
When reviewing applicants, make space for diversity. Look beyond traditional experience. Nonprofit work often requires flexibility, passion, and people skills that don’t always show up on a resume.
Once you’ve got finalists, background checks are a must, especially for roles involving finances, youth, or vulnerable populations. It’s not about distrust; it’s about doing your due diligence. Reference checks matter too, sometimes a quick call tells you more than a polished interview ever could.
Hiring can feel like a big lift, especially without an HR team. But with a simple process in place, you can move faster, stay fair, and bring in people who really fit.
Building a healthy and safe work environment
People do their best work when they feel safe, physically, emotionally, and mentally. That’s why creating a healthy work environment is just as important as any policy or fundraising plan. It sets the tone for how your team shows up, how they treat each other, and how long they stick around.
Start with the basics: make sure your workplace, whether it’s an office, remote setup, or shared space, is physically safe and meets any required health codes. Post emergency procedures. Check your insurance. Keep things tidy. These small steps add up.
But safety isn’t just about fire drills and first aid kits. It’s also about creating space where people feel heard and respected. That means having a clear way for folks to speak up if something feels off, whether it’s a conflict, a boundary issue, or a mental health concern.
Encourage regular check-ins, not just performance reviews. Normalize taking breaks. Offer flexibility when you can. And lead by example, how leadership handles stress, feedback, and hard days will shape the whole culture.
Even if your HR team is small (or just you!), you can still build a work environment that says, “You matter here.”
Regularly review and revise your HR policies
HR policies aren’t a “set it and forget it” kind of thing. As your nonprofit grows, laws change, or your team shifts, your policies need to grow too. A quick yearly review can help you catch small issues before they turn into big ones, and make sure your team always knows what to expect.
A good time to review policies is at the start or end of your fiscal year. If that’s too much, pick one month and stick with it every year. Look for things like:
- Changes in employment law (especially at the state level)
- Gaps you’ve noticed from real situations (like unclear leave policies or safety concerns)
- Updates to your mission, benefits, or structure
Involve your HR team if you have one, or pull in a board member or trusted advisor who knows this stuff. If you’ve got legal counsel, even better.
Once you’ve made updates, communicate clearly. Host a quick team meeting. Share a summary. Make sure the latest version of your handbook is easy to find. And if your team is small or remote? Even a one-page update with bullet points can make a big difference.
Policies are meant to serve your people, not sit in a drawer. Keep them current, keep them useful, and your team will thank you for it.
Useful resources for nonprofit HR teams
You don’t have to figure out HR on your own. There are plenty of tools, templates, and support networks made just for nonprofits. Whether you're building your first handbook or improving what you already have, the right resources can save you time and stress.
Start with your state nonprofit association, they often offer free guides, webinars, and legal updates specific to your area. National groups like the National Council of Nonprofits and SHRM (Society for Human Resource Management) also have nonprofit-specific advice and templates.
Need help with policies, forms, or compliance checklists? There are platforms that offer HR toolkits tailored to nonprofit needs. Many include editable templates for handbooks, job descriptions, onboarding checklists, and more.
Also, don’t overlook peer networks. Sometimes the best advice comes from other nonprofits who’ve already walked the road. Join nonprofit HR forums or local meetups to share what’s worked (and what hasn’t).
And if you’re ready for more support, consider working with a team like Harness. We specialize in helping nonprofits set up systems that make fundraising, communications, and yes, HR, way easier to manage.
Keep your focus where it belongs
Getting your HR policies in place might not feel urgent, but it’s one of the best ways to set your nonprofit up for long-term success. Clear policies create trust. They help you avoid messy situations, support your team, and keep your focus where it belongs, on your mission.
Whether you’re starting fresh or updating what you already have, the important thing is to take action. Start with what you know needs attention. Use the tools that make things easier. And don’t be afraid to ask for help, this work is too important to go it alone.
At Harness, we believe strong teams build stronger communities. That’s why we offer tools and support to help nonprofits like yours stay organized, look professional, and grow with purpose.
