While both help an organization reach new heights, the primary distinction between a board of directors and an advisory board is their legal responsibilities. An advisory board serves an important role in assisting organizations connect with a community by providing a perspective and ideas.
A advisory board is not subject to the legal obligations or fiduciary responsibilities of a regular board, therefore they are not able to make financial decisions for an organisation. It is vital that both advisory and directors of the board know the role and responsibilities of the advisory board.
It is essential to clarify the functions of an advisory panel by drafting an official resolution of the board. This will stop people on the advisory board from acting as a director. This is a problem that’s not only for liability reasons but also because https://theirboard.com/ it can create confusion and cause frustration for both the advisory board as well as the board of directors.
An excellent advisory board can be a valuable source for a non-profit organisation, and it’s imperative that everyone involved is aware of the role they play. By making sure there’s the distinction between an advisory board and a regular board, organizations can minimize the chance of confusion, avoid potential mistakes, and keep the best the best talent.
