This is one of those difficult questions that people ask you from time to time. If you want to appear confident in your beliefs you need to be able to give an answer. I hope this article will help you to formulate your own view. Please excuse the use of scholarly terms, it is very different to explain this subject in every day language.
This subject was raised at a debate held at Thorshof in August 1999… The folk present were asked if they considered the Norse gods to be corporeal (having a physical form) or non-corporeal (having no physical form). Unexpectedly we all agreed on this point, but please bear in mind that there are many answers to this question, and YOU are the only individual who can judge the correct answer for your own beliefs.
Everyone present saw the gods to be non-corporeal beings existing as cosmic energy. The gods were considered to be elements of the total cosmic force of the universe, and representing different aspects of nature. We all considered the gods to be beyond gender. Some deities especially Odin and Freyja were seen as epitomising the struggle to understand the whole cosmic force, but it was also agreed all the gods could act as spiritual guides for their devotees.
It was acknowledged that almost everyone feels more comfortable envisaging the gods as corporeal beings, (even if they believe them to be non-corporeal) and attributing them with human form and character. This humanised image of the god seems to be a merger of the worshipers conception of the deity, the worshippers ethics and the actual characteristics of the god itself. Those of us who had seen the deities saw them either in human form or as coloured energy. The gods are often accompanied by a warm and electrically charged presence, which felt like moving through water.
We all agreed that the symbols associated with the gods and goddess are powerful points of contact between the deity and the worshipper. It seems to be common for devotees to be aware of the symbol before even knowing the deity's name.
Please be aware that there is no right and wrong answer to this question, so don't worry if you don't agree with the Thorshof members. Here are some other possible explanations for gods, even if you don't accept these possibilities be aware that other folk may…
The spirits of dead mortals protecting the living.
Role models for attributes the devotees desire, e.g courage, honesty, and generosity for example. In this instance it is not important whether or not the deity exists, only that the worshipper strives to become that deity to the best of their ability.
Immortal humans with superhuman powers existing in another dimension.
Immortal humans with superhuman powers existing in this dimension, and maybe even living secretly among us.
An alien race with higher technology and telepathic abilities. Not necessarily humanoid or corporeal.
NOW I HAVE GOT YOU THINKING, CONSIDER THE FOLLOWING:
Is it correct to say, that a god can be whatever it wants to be?
Do gods benefit from worship, if so how?
In heathen worship what is more important, the offering given to the deity or the act of offering itself?
If gods are non-human or even non-corporeal, are they concerned by ethics and moral conduct that purely concern humans, such as sexual customs and phobias?. Can you think of any examples of gods breaking human conventional behaviour in the myths?
Do gods have any interest in human race or gender?
What human ethics and laws would also apply to the gods?
If gods have partners as we understand them, how would immortality effect their relationships? Again what can we learn from the myths?
How would a god respond to being visualised with negative attributes?
How does the idea of the afterlife correspond with your understanding of the gods' nature?
Further reading:
Althrough written for humour Terry Pratchet's novel 'Small Gods' is full of surprising deep wisdom on this very subject, and the question, what are gods and how do they thrive is applied to polytheistic religions. Highly recommended.