Both boards of directors and advisory boards aid in helping an organization achieve new heights. Their primary difference is in the legal responsibilities they have. The advisory board plays an important role in assisting an organization connect with its community by providing a perspective and suggestions.
A advisory board is not legally bound by the obligations or fiduciary responsibilities of the regular board, which means they are not able to make financial decisions for an organisation. It is vital that both advisory and directors of the board are aware of the purpose and boundaries of the read the article advisory board.
It is essential to clarify the role of an advisory panel, through the written resolution of the board. This will keep individuals on the advisory board from acting as directors. This could be a problem not just due to the liability issue, but also because it can create confusion and anger among the advisory board members and the board.
An advisory board that is well-established is a great resource for a non-profit organization, and it’s crucial that everyone involved understands what their role is. By making sure that there is a clear distinction between an advisory board, and a regular Board, organizations can avoid confusion, avoid missteps and retain top talent.