While both aid in helping organizations reach new heights, the main difference between a board directors and an advisory board is their legal responsibilities. The advisory board plays an important role in assisting a nonprofit to connect with the community, sharing perspectives and suggestions.
An advisory board doesn’t have the same legal responsibilities or fiduciary responsibilities as a regular board of directors, meaning that they don’t make financial decisions on behalf of an organisation. It is essential that both the advisory board and the board directors understand the role and responsibilities of the advisory board.
It is important to clarify what an advisory panel does by means of an official resolution of the board. This will stop people on the board from acting as a director. This isn’t just for legal reasons, but also because it could cause confusion and anger for both the advisory board as well as the board of directors.
A well-run advisory board is a valuable resource for a non-profit organization, and it’s essential that everyone involved understands what their role in the organization is. By making sure there’s a clear distinction between an advisory board and a regular board, organizations can decrease the chance of confusion, avoid potential mistakes, and keep the best talents.
https://theirboard.com/what-it-takes-to-be-an-effective-board-member/
