While both can assist organizations reach new heights, the primary difference between a committee of directors and an advisory board is their legal obligations. An advisory board is a great way for nonprofits to interact to the community and offer their ideas and perspectives.

An advisory board doesn’t have the same legal obligations and fiduciary responsibilities as a regular board of directors, which means that they do not make financial decisions on behalf of an organisation. It is vital that both advisory and the board directors understand the function and boundaries of the advisory board.

This is particularly important when an organization refers to both groups as the “board.” By providing a written explanation of what an advisory board does by means of a resolution on the board for instance it is possible to ensure that members of the advisory board don’t accidentally start acting as a board of directors. This can be a major issue, not only because of liability issues but also because it can create confusion and anger among members of https://theirboard.com/whats-the-difference-between-the-board-of-directors-and-an-advisory-board/ the advisory board and the board.

An advisory board that is well-established can be an excellent resource for a non-profit, and it’s crucial that everyone involved understands what their role within the organization is. By ensuring that there is a clear difference between an advisory board and a regular Board, organizations can avoid confusion, avoid mistakes and keep talent.