https://theirboard.com/whats-the-difference-between-the-board-of-directors-and-an-advisory-board/
Boards of directors and advisory boards help organizations reach new heights. However, their primary difference is in the legal responsibilities they have. An advisory board can be a useful tool for nonprofits to connect with the community by sharing their perspective and ideas.
An advisory board doesn’t have the same legal responsibilities or fiduciary duties as a regular board of directors, which means that they are not able make financial decisions on behalf of an company. This is why it’s important to ensure that both the advisory board and board of directors understand the significance of the advisory board, as well as the limitations of its role.
It is essential to clarify what an advisory panel does, through writing a board resolution. This will keep individuals on the board from accidentally acting like a director. This isn’t just because of liability issues, but also because it could cause confusion and anger for both the advisory board and the board of directors.
An advisory board of high quality can be a valuable resource for a non-profit, and it’s essential that everyone involved is aware of what their role is. By ensuring there’s the distinction between an advisory board and a regular board, organizations can reduce the chance of confusion, avoid potential mistakes, and keep the best the best talent.
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