Every social purpose organisation (SPO) has a legal board, however skeletal its composition may be. It is common for the first legal board to comprise friends and family, people who are willing to vouch for the founder and take on associated compliance responsibilities. As the organisation grows and the issues it addresses become more complex, the board must evolve from primarily fulfilling statutory requirements to actively supporting the leadership. This requires more than adding expertise; like any relationship, the board needs to be intentionally nurtured, with clear expectations and individual contributions aligned to collective outcomes.
What is a Nonprofit Advisory Board?
Organisations that have been in existence for 3-5 years and moved beyond the proof-of-concept stage often reach an inflection point, shifting their focus towards long-term sustainability. At this stage, founders/CEOs increasingly need strategic advice across areas such as growth and scale, fundraising, governance, people and processes, and branding and communications. Their legal boards, however, may not have the breadth of expertise required across these areas, while the organisation’s structure may limit the ability to bring in new board members in the foreseeable future.
A practical option is to build a group of advisers/mentors who can provide the needed expertise without the legal responsibilities of board membership, while keeping the organisation’s mission at the centre. This group may be called a Board of Advisers, Advisory Board, Advisory Council, Advisory Committee, Council of Elders, or other variants.
An advisory board is not required to meet every quarter. However, when a group of advisers is involved, a clear engagement model helps ensure their expertise is valued, relevant and effectively utilised.
Key Roles and Responsibilities of Advisory Board Members
- Bring relevant expertise and perspective based on their domain knowledge and experience
- Advise the founder/CEO and leadership team on strategy, priorities and the road ahead
- Be available beyond formal meetings for periodic discussions, problem-solving and counsel
- Act as ambassadors for the organisation, building awareness and opening doors through their networks
- Proactively support the founder/CEO in advancing the organisation’s mission and strategic priorities
How an Advisory Board Differs from a Governing Board in Nonprofits
A governing board provides formal governance, oversight and fiduciary stewardship. It has legal authority and accountability as defined by the organisation’s legal structure, and the members are legally accountable office-bearers/directors or trustees. The composition and appointment are governed by law, the organisation’s governing documents and applicable regulations. It carries responsibility for key organisational decisions, compliance, risk and stewardship. Accountability extends to the organisation, its stakeholders and, where applicable, regulators and the law.
An advisory board, on the other hand, does not have statutory or legal authority over the organisation. Members are thought partners, advisers and connectors. An advisory board can be constituted around the organisation’s evolving needs and priorities. It offers flexibility to the founder to bring in domain expertise, networks and lived experience that may not exist on the legal board. It can be relatively flexible in composition, tenure and engagement. Accountability is primarily to the quality and relevance of advice provided.
When Should Nonprofits Create an Advisory Board?
- When additional expertise is needed: An advisory board gives the founder/CEO access to strategic guidance without altering the organisation’s legal governance structure.
- When flexibility matters: It offers greater flexibility in selecting advisers, defining their roles and shaping the nature and frequency of engagement.
- When the need is advisory, not statutory: Advisory boards provide counsel and perspective without the legal responsibilities of a governing board.
- When intentional relationships can add value: Effective advisory relationships are built around clear expectations, trust and alignment with the organisation’s mission.
- When the organisation needs to evolve its support system: An advisory board can bring in new expertise and networks as the organisation’s needs change, with greater ease of transition if the relationship no longer serves either party.
Who Should Join a Nonprofit Advisory Board?
- Senior corporate leaders seeking portfolio careers or meaningful ways to contribute in their next chapter.
- Individuals genuinely interested in the social sector and willing to contribute their time, talent and, where appropriate, treasure.
- People who resonate with the organisation’s mission and cause, and are committed to its success.
- Individuals with the time and bandwidth to understand the SPO’s work, engage with it meaningfully, and provide relevant counsel.
Common Challenges and Considerations
There are fewer challenges to the structure as participation depends on willingness to join:
- It is a commitment for which leaders should be prepared to invest time and energy in the mid to long term
- They should articulate their expectations and concerns, if any, so that all doubts are cleared prior to onboarding
- They should be aware that their inputs are helping the organisation in its growth and sustained impact, but in the long run
- In case of lack of alignment with the founder/CEO after joining, there should be understanding to part ways
Practical Steps to Establish an Effective Advisory Board
- Have clarity on the areas where you need expert advice
- Have a transparent conversation about your needs
- Articulate the role for which you are approaching the said adviser
- Have a tenure demarcated and also a JD to ensure transparency and accountability
- Be upfront about issues that need discussion and avoid delaying the sharing of bad news. It helps to build trust
- Limit the number of advisers as relationships have to be nurtured and need time
- Be intentional about the relationships
As the social sector grows and complex and regulatory demands evolve, boards must move beyond oversight to actively support organisational leadership in advancing its mission and doing right by the constituents social purpose organisations are committed to serve.
Building an advisory board is, in many ways, the easy part. It starts with clarity of purpose and finding the right people. The real work lies in creating a living, thinking collective that brings together diverse expertise, challenges constructively, supports generously, and stays anchored to one purpose: enabling the organisation to deliver greater and sustained impact.
About the Author
Samina Alam heads the Centre of Excellence for Board and Governance at ILSS. With nearly two decades in education and skills, she has led large-scale, multi-stakeholder initiatives across geographies for corporates and nonprofit organisations, driving systemic education reform, curriculum design, training, and impact assessment. An entrepreneur at heart, she co-founded an education startup, launching preschools for peri-urban communities and employability skills programs. A ‘Social Entrepreneur’ awardee in Masterpreneur 2015 (CNBC Awaaz), she previously served as CEO of SEEDS Impact, leading work across education, livelihoods, and health. Passionate about gender equity and expanding opportunities for marginalised communities, she brings an entrepreneurial approach to leadership.
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