A board of directors is a set of individuals responsible for governance, control and direction of an organisation. They are accountable for the legal obligations and accountability of a business. If they fail in their obligations to their fiduciary duties, they may be personally responsible.
An advisory board is, in contrast, is a group of people who offer guidance and mentorship on how a business should be run. The advice they offer is www.theirboard.com/tips-for-hosting-a-successful-virtual-event/ more direct, and their focus is on growth, development and strategy, as opposed to reporting and governance, managing risk and avoiding risk that could be detrimental to the business.
Ideally, an organisation should outline clear guidelines regarding the role of their advisory board – not just in official documents such as meeting minutes, but as well in every day communication to avoid confusion. This will ensure that they don’t accidentally cross over into the territory of being a board of directors, which can have serious legal consequences for members if they’re not performing their fiduciary duties.
This distinction can be a bit blurred in practice, with organisations sometimes referring to their advisory boards as “the board.” It’s a good idea to put this in writing, both for the sake of clarity and to avoid mistakes that could be made. A formal written statement defining the function of an advisory board can help to minimise the risk of confusion for the people involved. It is particularly useful when members of the advisory committee may be a part of the board of directors or have just joined an organization for the first time.