What is the difference between a governing board and an advisory board

Furthermore, whatever the organization decides to call this advisory committee, everyone in the organization should stick with that language as much as possible not only in documentation such as meeting minutes but also in everyday verbal communications to avoid future confusion.

There can be a wide array of reasons beyond these four and accordingly, looking at the purpose for the advisory board can raise a variation of additional considerations. For example, if the organization is seeking fund raising prestige, it may not want or expect much interaction with the advisory board with respect to meetings of the board of directors or participating in non-fund raising discussions.

Alternatively, if it is foreseeable that members of an advisory board will someday become part of the governing board, there is likely a greater importance in having procedures in place to groom potential candidates for a director position during their service in only an advisory capacity.

Depending on the purpose of the advisory board, other considerations may include:. Determining whether or when to allow advisory board members, if any, to be involved in executive sessions is a precautionary step to address prior to an executive session given that these sessions are often used to discuss sensitive matters outside of the presence of the staff and other non-director individuals.

It may be helpful for directors to discuss questions such as:. Although advisory board members are legally different from members on the board of directors, one similarity they share is likely being perceived as walking billboards of the organizations to the public.

Especially for advisory boards that are intended to garner attention and prestige, an organization may want to consider message training or other activities to keep the advisory board engaged, knowledgeable, and good advocates of the organization. Consider strategies for addressing issues such as:. Advisory boards are often subject to less rules and procedures commonly attached to a board of directors such as terms, term limits, nominations and election procedures, and removal processes.

This can be expected when there is a purposeful intention to create a less formal structure and less demanding commitment, such as an advisory board intended for outgoing directors or individuals who are seeking less time commitment to the organization or for an organization that has no plans for the individuals beyond the advisory board. However, in some situations, involvement in an advisory board may be the precursor to someday joining the board of directors. For example, organizations may want the advisory board to serve as 1 an opportunity for individuals to test the waters of their fit with the organization, availability, and other commitment factors; and 2 a training ground for finding and grooming potential directors.

The board of directors should consider what types of additional procedures may be appropriate through questions such as:. Common Missteps Voting A director on the board of directors has the right to vote as a member of the governing body. Depending on the purpose of the advisory board, other considerations may include: Executive Sessions Determining whether or when to allow advisory board members, if any, to be involved in executive sessions is a precautionary step to address prior to an executive session given that these sessions are often used to discuss sensitive matters outside of the presence of the staff and other non-director individuals.

In what ways would this group complement your governing board without confusion about who governs the nonprofit? Should you call it an advisory board, or would it be better to invite people to serve on a committee or task force? Whatever you choose to call the group, be very sure about its purpose. Having an advisory board just to say you have one is a recipe for confusion and burnout. Once you have answered these questions, you can plan your advisory board structure.

Each advisory board or committee should have bylaws and clearly defined roles before you start inviting people to join. If an advisory board knows that they can make recommendations that are taken seriously and discussed by the governing board, good things can happen. When a group is not clear about their role for the organization, misunderstandings about their authority to mandate change or action can make everyone uncomfortable.

A specific job description will be helpful in defining roles. Be sure to spell out who and how and when the recommendations will be sent to the governing board.

There should be measurable goals for the specific area of focus so that everyone feels like they are working toward the same finish line. Some nonprofit advisory boards are essentially fixtures. They will remain with the nonprofit organization for the longterm, helping the organization manage specific fundraisers or tasks.

Other nonprofit advisory boards are going to be temporary. They will be formed at the beginning of a project and then dissolved by the end of the project. When and how the advisory board disbands should be decided when the advisory board is created. Think carefully about these questions before assembling a group to advise your organization.

If you form your advisory boards well, you have a powerful mechanism for training future board members, retaining excellent past members, and tapping the expertise in your community. Committees can be standing or ad hoc task forces, but they are governed by best practices that make sure everyone knows what is expected. By spelling out the guidelines for your advisory board or committee, you guard against burnout, produce better results, and recruit top talent.

Like any committee, your advisory board should have its own charter. This should spell out how members are added, what their term limits are, how they will report to the board, the meeting frequency and expectations, goals, and so on. Make sure the charter is easily accessible for existing and new members. Decide if you want to have term limits for the advisory board and be sure to spell this out in the charter. Unlike the main board, it may be advantageous to allow people to volunteer for the advisory board as long as they have interest.

This can be a benefit for the nonprofit. For example, if the organization has an emeritus board member advisory board to counsel leadership, it would be counterproductive to kick those members off after two years. Whatever term limits or lack of make sense for your advisory board, just be sure everyone knows the protocol upfront. The same applies for recruitment. While you want a balance of variety on the main board of directors, an advisory may want individuals with specific expertise in common.

As long as the needed expertise is spelled out in the charter, the advisory board can be as focused as necessary. Be sure to protect your advisory board with provisions in the charter for diversity and inclusion. Before you ever start an advisory board in the first place, there should be a clear reason for its existence. Whatever the goal of the board, the measurable aspects of the goal should be in the charter and communicated to members when they join.

As part of goal tracking, advisory boards need periodic assessments, just like the board of directors. This could be as simple as a five-minute check in with members at the end of a monthly meeting, or a more in-depth evaluation from time to time. You can read more about board evaluations in our comprehensive article.

For an advisory board to be successful, they should have the necessary tools to communicate both internally and with other boards. Advisory board members help to fill in gaps of knowledge. In addition, they can help the board break into new markets or industries. When making the choice about who should serve on an advisory board, boards should pass over candidates that are apt to give in to groupthink or only offer the advice that they believe will be received well by the board.

They should be individual thinkers who also have enough time to do research before advisory board meetings and be able to deliver objective, accurate information. In most cases, advisory board members are expected to serve without direct compensation.

Advisory board members that get paid get lesser amounts than regular board directors. Advisory board members for nonprofit organizations usually serve without compensation. Typically, boards will reimburse advisory board members for travel, lodging, or other expenses that they incur during the course of their duties. The primary role of board members is to strategize for organizational success and future sustainability. Of additional importance is that boards have the responsibility to hire, monitor, and fire the CEO or executive director.

Boards also have the power to make alterations in the executive management team. As the primary organizational leaders, board directors must always make it a priority to put the interests of the organization first.

Boards have all the power and authority for decision-making. They also have all the responsibility for the organization. Board directors can be sued collectively or individually for not giving due diligence to their responsibilities or for neglecting their responsibilities.