While both help organizations reach new heights, the main difference between a board of directors and an advisory board is their legal obligations. An advisory board is a great tool for nonprofits to connect with the community by sharing their perspective and ideas.

An advisory board does not have the same legal responsibilities and fiduciary responsibilities as a regular board of directors, which means they are not able to make financial decisions on behalf of an organization. It is important that both the advisory board and directors of the board know the purpose and limitations of the advisory board.

This is especially crucial in the case of organizations that refer continue reading this to both groups as the “board.” By writing down a clear explanation of the role of an advisory board by means of a resolution on the board, for example it is possible to ensure that those on the advisory board do not accidentally begin acting like a board directors. This is a problem that’s not only for liability reasons but also because it can cause confusion and frustration for both the advisory board as well as the board of directors.

A great advisory board is an excellent resource for a non-profit, and it’s crucial that everyone involved understands what their role within the organization. By ensuring that there is a clear distinction between an advisory board, and a regular Board Organizations can avoid confusion, avoid blunders and retain talent.