Nonprofit advisory boards can offer much-needed wisdom, experience, and creative solutions to fundraising organizations. Bringing fresh eyes and diverse perspectives, a well-structured advisory board can bring stability to a fledgling organization or help it grow to new heights. The key is finding quality members who believe in your mission just as much as you do.
Is your nonprofit in need of some good advice? Maybe you’re a young organization with little experience. Perhaps you’ve hit a fundraising slump, or you need help navigating tricky compliance issues. Whatever the reason, nonprofit advisory boards might be just what your organization needs to bring in fresh ideas, develop creative solutions, and raise funds.
While not every organization needs one, advisory boards are powerful tools for nonprofits. In this article, we’ll cover how to ensure your advisory board is set up and organized to maximize its fullest potential.
A nonprofit advisory board is different from a board of directors in that it lacks decision-making authority. While a board of directors focuses on strategic planning, oversight, and fundraising, advisory boards offer advice and answer questions on a variety of topics.
Usually, nonprofit advisory board responsibilities supplement an organization’s core knowledge on things like finance, law, cybersecurity, compliance, recruitment, or marketing. After all, a nonprofit’s board of directors, staff members, and volunteers can’t know everything about everything!
Advisory boards can be set up in a variety of ways, with some nonprofits using more than one to fulfill various needs. Common structures include:
Within these roles, a nonprofit advisory board can significantly influence long-term strategy and decision-making capabilities.
One of the primary functions of an advisory board is to bring credibility and protection from liability. They also help the organization find innovative ways to encourage growth and raise awareness about the nonprofit’s mission to encourage donations.
A nonprofit advisory board is only as good as the advisors it attracts. That’s why nonprofit advisory board roles and responsibilities should be clearly defined – so everyone understands what’s expected of them.
The roles of an advisory board in nonprofit work can include a lot of things, such as:
Advisory board members can come from all walks of life. In fact, diversity, whether in skill or experience, is encouraged to combine different perspectives. Decide how many members you need and avoid having too many cooks in the kitchen. Also be sure to share the names of your advisory board members with the public, preferably on your website, to ensure total transparency.
Any potential conflicts of interest should also be identified early on and addressed. These can include situations when an advisory is also consulting with a competitor, if a member has a financial interest in the organization, or if someone has a personal relationship with an executive leader. Investigate these potential issues thoroughly so they can be recused from related discussions or decisions.
When creating an advisory board, nonprofit board members must first identify the need or problem they are trying to solve. In most cases, it’s to resolve a gap in knowledge.
Once defined, board members will need to pass resolutions to adopt the advisory board and create a charter to set goals and establish procedures. Each member will likely sign a consulting agreement. Any associated cost or compensation should be spelled out in detail.
When looking for advisory board members, try to put your best foot forward in order to attract quality candidates. Good advisors are unlikely to join if your accounting is a mess and you’ve just laid off staff. This is also true when trying to attract the best volunteers.
Lean on your organization’s board of directors, staff, and even volunteers to keep an eye out for good candidates and announce the search on social media channels. And don’t forget to look to other organizations. Advisors who are no longer serving there might be able to help solve similar challenges for you.
Your existing major donor base is also a good place to look for advisory board members. They already know and support your mission – ask if they are interested in giving their time and talents as well. Use Donorbox Donor Management tools to search for and take note of potential advisors as well as track communications, giving history, and more.
Finally, when onboarding new advisory board members, make sure they have everything they need to get started. Remember that these people have busy lives and are balancing multiple commitments. Be sensitive to scheduling demands and make sure they have whatever they need to fulfill their roles.
Aside from getting help raising funds, the single biggest reason to form a nonprofit advisory board is to bring fresh eyes to how your nonprofit operates. Routines can be hard to break if we don’t notice them. Advisory boards can suggest innovative solutions to keep you afloat in a sea of risks and opportunities.
Not every nonprofit needs an advisory board. Take some time to assess your needs and knowledge gaps to determine how many advisors you need. Be clear in your expectations and respectful of their time. And finally, give them everything they need so they can give you accurate advice.
When set up properly, a nonprofit advisory board can bring the wisdom of experience to help organizations either stay the course or pursue greater growth.
Having the right fundraising tools also helps grow your organization. Donorbox offers several innovative features to take your nonprofit to the next level, including peer-to-peer, donor management, event ticketing, a donation kiosk app, and much more. Sign up for free now!
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Milly is a freelance writer and editor with over 20 years of experience in the fields of content marketing, communications, and brand voice. Grounded in journalistic tradition, she develops messaging and communication strategies for nonprofits, startups, and businesses.
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Millicent Skiles