Advisory Boards
If managed correctly, advisory boards are a great way to improve your nonprofit. For this topic
of the month we will discuss what an advisory board is, the roles and functions of the advisory
board, and how to recruit members.
Distinctions
Advisory boards differ from a board of directors because they are an unofficial body with no
legal or fiduciary responsibilities. Advisory boards have no bylaws so it is important to document
expectations for the members and organization. Board of directors, on the other hand, which
can also be referred to as the board of trustees or the board of governors, are liable for the
outcomes of a company and therefore have legal and fiduciary duties. Unlike a board of
directors, advisory boards are not covered by director/officer insurance because of the fact that
they are usually not held responsible for outcomes. There are exceptions made in some states,
depending on the liability instated by the organization. Unlike an advisory board, the board of
directors has the power to influence and change an organization’s policies and procedures.
Advisory boards can simply suggest ideas to the organization and can act as an influence, but
have no real power to carry these ideas out. To read more about boards of directors and how to
effectively establish and manage them, visit the “Board of Directors” link listed under
“Nonprofits” tab on our webpage.
Defining Roles
Advisory boards may have several different functions depending on the purpose established by
the nonprofit. It is important for the organization to determine the purpose of the advisory board
before choosing members because different types of people will yield unique benefits. Ensuring
the goals of the advisory board and the abilities of its individual members align is key to creating
a successful board. Common roles of advisory boards are as follows:
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Lending expertise and credibility: One of the most common uses of an advisory board is
the use of members to lend credibility to the organization, such as listing them on
letterhead. In addition to this, advisory board members will also lend expertise to your
organization. Your nonprofit may want to expand its ideas and get new outlooks on
potential projects. By bringing in experts on topics of interest, your nonprofit can gain
critical information and insight that is otherwise not available.
Continues involvement for former board members who want to stay involved with the
nonprofit: It is beneficial for a nonprofit to still take in advice and influence from
respected former board directors who already know a lot about the nonprofit and its
goals. This is a great way to allow directors who can no longer serve to still have a voice
in the organization. Additionally, if a board member is no longer engaged at the Board of
Directors level, an advisory board spot may be an opportunity to keep the person
involved but not on the official Board.
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Acts as a testing ground for young or soon-to-be board members: Potential board of
directors can see first-hand the level of commitment needed by the nonprofit by
participating first on the advisory board. The background experience the advisory board
will provide them will also allow them to be fully familiar with the nonprofit before they
start a more rigorous role as a director.
Increase networking capabilities to expand donor base: Nonprofits are a great way to
increase donations. Advisory board members are often high power people who not only
have the financial means to donate themselves, but they can open up doors to other
potential donors through their relevant connections. While it is a challenge to have
advisory board members actively participating in fundraising, we recommend reinforcing
the idea that 100% board participation in giving is ideal.
Advisory Board Guidelines
Once the purpose of the board has been established, the organization should create an
advisory board guideline, also known as a charter. A charter is simply a document that outlines
the rights, privileges, purpose, and term limits of the board. Term limits are not necessary for
advisory board members, but if they are they need to be communicated to the members from
the start. Clear guidelines reduce risks and future challenges that advisory boards typically face.
For example, there will be less confusion and disagreement between members and the
organization about duties and rights. An organization should frequently reflect back on the
charter and review the advisory board’s accomplishments and impact. If the advisory board has
not been doing what it was originally intended to do, the organization should either readjust the
board’s activities so they align with that of the charter, reorganize the board, or consider seeking
outside assistance.
Types of Members
The purpose of the advisory board should influence the different types of members a nonprofit
has on its board. An advisory board will ultimately fulfill one of the three roles listed below. In
some cases an advisory board will be a fundraising board, but this will most likely occur in a
capital campaign situation. The most common types of advisory board members fall into one of
three categories: expert, networker, or a donor based on their purpose for being selected for the
board.
1. An expert refers to an individual who has a vast background on a particular topic or field
such as a doctor serving on a medical mission’s advisory board. This would be someone
whose role is consistent with the lending expertise role as mentioned previously.
2. A networker on the other hand, is simply someone who is well recognized, respected,
and who can bring attention to the nonprofit through connections and their own publicity.
An example of this might be a United Nations delegate on a human traffic advising
board. The delegate most likely knows many people who would be interested in donating
to a human trafficking-based nonprofit and therefore could really help with expanding the
donor list.
3. Finally, a donor is someone who is brought onto an advisory board for the main purpose
of donating money. The type of people the nonprofit creates its advisory board from
have a monumental effect on the outcome and what is ultimately achieved by the board.
Choosing Members
Selecting appropriate members is important to the success of the board and ultimately the
nonprofit. Having a member whose strength and abilities align with the purpose of the board will
be most beneficial. Additionally, it is a good idea to populate the advisory board with some
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former board members who can offer financial support to the nonprofit. Former board members
are a great asset because they are familiar with how to run the nonprofit. When recruiting
members, consider the strengths and weakness of past board members and find new applicants
who will compliment them. Similarly, giving board members meaningful opportunities, such as
interacting with volunteers, will help keep them engaged and reminded of the mission.
Challenges
Common misconceptions of advisory boards are they have no real power or responsibilities and
are run by uncommitted members. This same outcome occurs when there are not enough board
meetings held and members have too little interaction with the organization. While it can be
challenging to have all advisory board members meet on a regular basis since often boards are
filled with big name people who have busy schedules, it can be overcome by establishing an
advisory board guideline or charter for members. Another way to overcome this obstacle is by
filling your board with individuals who have different strengths, weaknesses, and time
commitments to create diversity. For example, a board filled with all medical doctors who
typically work a hundred hours a week will not be as effective as a board filled with diverse
medical professionals. The doctors may have advanced experience and knowledge, but other
health care professionals will give different perspectives and be able to have more free time to
devote than a board with all identical members.
Best Practices
 Establish mutual expectations up front. What do you need from them, frequency of
meetings, how will you apply their input?
 Develop a regular meeting schedule
 Communicate on a consistent basis by sending out meeting agendas, memos, and
action items
 Advisory Boards lose interest if their perspective is ignored, so make sure Board
members know you appreciate their time and act on the meeting outcomes
 Pick people who will tell you what you need, not what you want to hear
 Develop individual relationships with Board members
 Keep meetings strategic
It is important to take time to create and maintain a healthy advisory board. A charter, or guiding
document, should be reviewed and assessed on a regular basis. A successful advisory board
will have a diverse membership with individuals who are well connected, experts in their field, or
able to donate to the mission. Furthermore, it is important to regularly meet with board members
to discuss the strategy and progress of a nonprofit. Once implemented, a successful advisory
board can drive the nonprofit forward and help achieve the mission.
Articles for Further Reading
1. A brief overview of advisory boards www.councilofnonprofits.org/advisory-boards
2. Recruiting advisory board members and confronting issues
http://www.blueavacado.org/node/567
3. Purposes of a Nonprofit Advisory Boards
https://nonprofitquarterly.org/management/22040-advisory-boards-and-other-bodies-yesor-no-and-why-or-why-not.html
4. Legal andfudiciary roles and obligations of advisory boards
http://www.nonprofitlawblog.com/advisory-board-v-board-of-directors-a-distinction-witha-difference/
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5. Guidelines for forming advisory boards and development
http://managementhelp.org/boards/advisory-boards.htm
Peter Giersch is COO in the Midwest office at Cathedral Consulting Group, LLC. Virginia
Zignego is a Senior Associate and Stephanie Weber is a former Intern Associate in the
Midwest office.
For more information, please visit Cathedral Consulting Group LLC online at
www.cathedralconsulting.com or contact us at info@cathedralconsulting.com.
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