Board of Directors Vs Advisory Board

https://theirboard.com/whats-the-difference-between-the-board-of-directors-and-an-advisory-board/

While both aid in helping an organization reach new heights, the main difference between a board directors and an advisory board is their legal obligations. The advisory board plays an important role in helping an organization connect with a community, providing insight and suggestions.

A advisory board is not subject to the legal duties or fiduciary obligations of a regular board, so 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 crucial to define the role of an advisory panel by drafting writing a board resolution. This will stop people on the board from acting as directors. This is a problem not solely for liability reasons, but also because it can create confusion and cause frustration for both the advisory board as well as the board of directors.

An advisory board of high quality can be a valuable resource for a non-profit organization, and it’s crucial that everyone involved understands the role they play. By ensuring that there’s clearly defined distinction between an advisory board and a regular board, organizations can decrease the chance of confusion, avoid potential mistakes, and retain the best talents.