What is an advisory council and what can it do for your nonprofit?

Building a diverse, skilled board is a priority for each nonprofit or mission-driven organization. But, as experienced as they may be, board members can still benefit from expert support, whether it comes in the form of a Greek chorus, peanut gallery, pinch hitter or some other type.

This is where the advisory council steps in.

An advisory council may also be referred to as an advisory committee or advisory board, though a piece in Philanthropy Daily points out, “For the sake of branding and to avoid confusion, these groups are better designated ‘advisory councils’ than ‘advisory boards,’ as the latter might lead to confusion with the board of directors.”

Whatever you call it, advisory councils can serve various purposes to help further an organization’s mission and provide valuable benefits to boards of directors.

In this guide, we’ll take a look at what an advisory council does, what role it can play in your organization and how technology strategies can support this important work.

What does an advisory council do?

Before forming an advisory council, it’s crucial for boards to decide what the advisory board’s purpose will be. Common purposes for forming advisory councils are:

Providing expertise

Even the most diverse and well-developed board can have gaps in its knowledge. Many organizations look to an advisory council to provide expertise or advice in specific areas, such as technology, science, health, policy, law, marketing, public relations and others.

“An inclusive and engaged advisory committee has the potential to increase the quality, reach, and overall impact of your nonprofit’s work on a consistent basis.” Shannon Rose, Executive Director of the Oregon Attorney General’s Sexual Assault Task Force (SATF)

Spearheading a project

As the saying goes, “Many hands make light work.” If the board has a specific strategic project that it is unlikely to find the capacity for, creating an advisory council can be a way to make the goal a reality. The council can see the project through, from planning to completion.

Fundraising for a specific project

This type of development can be perfect for an advisory council, which can be composed of individuals with specific knowledge, skills and contacts related to the project, those who are strong in fundraising and networking or — even better — both!

Fulfilling several roles for a nonprofit program where the organization serves as the fiscal agent

Like the specific project work, the advisory council may be formed or called in to manage a particular program that is distinct from other regular organization work.

Being a sounding board

In their myriad roles leading an organization, board members can find it difficult to find the right people to offer advice or share another point of view. Boards dealing with ethical dilemmas are a good example. The advisory council can provide a more-neutral sounding board.

Serving as an advocate or spokesperson for the organization

Every nonprofit can benefit from more advocates. The advisory council can exponentially grow the voice of the organization.

Serving in an honorary capacity

Many organizations will have honorary boards, councils or committees. The individuals in these roles may perform one or more of the functions above. They may also be prominent individuals in the nonprofit’s realm who provide name recognition.

While the purpose of an advisory council varies based on the organization’s needs, all advisory councils should have a clear understanding of their purpose, guidelines and limitations.

How do advisory councils fit in the organization?

Advisory councils are a group of individuals that effectively supplement the board’s skills and abilities to help guide the organization toward its stated mission.

Advisory councils don’t typically have any authority. In most cases, the board of directors retains the ultimate governing authority even if the advisory council has some discretion over projects, tasks and other elements. The primary role of an advisory board is to provide the board with key information and to make recommendations to them on certain matters.

As a collective body that’s likely to have strong opinions, it’s important for boards of directors to provide some type of structure for their advisory councils so that their meetings are useful and productive. It’s helpful for advisory councils to have policies of their own, just as boards of directors have policies to help govern themselves.

Boards may form policies for advisory board duties, meeting attendance, conflict of interest, ethics, decision-making or any other need that the advisory council has.

It’s also important for advisory councils to have a governing charter. A committee charter is a handy tool that clearly lays out the council’s role and purpose in writing. It covers all the basics, like who’s on the council, when they’ll meet and how they’re expected to communicate with the board. Stanford University offers samples of various committee charters.

Boards should also be clear about whether the advisory council is a permanent group or just a temporary one that meets for a set period of time. With a solid charter in place, everyone knows what to expect and how the council fits into the bigger picture.

Certain circumstances may require specialized attention from an advisory council, so it’s often helpful when an advisory council charter specifies that the council can form subcommittees as needed to address certain short-term purposes.

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How long do advisory councils serve?

Boards may form advisory councils as standing bodies that the board can rely on for regular guidance and advice. Depending on the advisory council’s purpose, the board may elect to make it an ad hoc council that works toward achieving a specific goal.

Advisory council members may have term limits, or they may serve indefinitely. The board generally appoints and removes members of the advisory council. The board of directors may also appoint a board chair. If they don’t, an advisory council may appoint their own chairperson or rotate the chair among the council members. It’s also common for at least one board director to serve on an advisory council.

What additional benefits do advisory councils provide?

Advisory councils, in addition to providing specific functions, can help the organization with remaining healthy in a few key ways.

• Relationship building. Boards that work closely with their council members eventually develop a deep level of trust and confidence in their guidance over time, which is a strong asset to the board.
• Greater efficiency. Advisory councils can also help to create greater efficiency on the board. Organizations that are growing quickly may become too large to be effective for complex or highly specialized projects. Smaller groups, such as an advisory council, often facilitate an environment that’s more conducive to productive communication and decision-making.
• Succession planning and continuity. Another benefit of advisory councils is that they provide a forum for incoming or outgoing board directors. As terms for board directors expire, they may desire to continue serving the organization in some capacity. Boards may decide to transition board directors with expired terms from the board to the advisory council to retain the benefit of their knowledge base and expertise.

It can also be helpful for boards to consider moving advisory council members to the board as vacancies become available. Placing prospective board director candidates on the advisory council first gives boards time to develop a relationship with them and to assess their skills, commitment and capabilities before giving them a formal offer of a board seat.

Do advisory council members receive compensation?

Nonprofit organizations typically lack the funds to offer compensation to their advisory council members. Advisory council members of nonprofits nearly always serve on a volunteer basis, just as nonprofit board directors do.

On the other hand, corporate boards often benefit by paying their advisory council members with the goal of keeping them actively engaged and invested in the company. Paid advisory council members may be paid with a retainer or on a per-meeting basis. The average advisory council meets about four times a year.

How can technology support the work of the advisory council?

Your board management solution — especially a fully featured tool like BoardEffect — can be a valuable asset for both creating and managing the advisory council and for the council members themselves. Let’s look at how:

• Approval workflows and a searchable document library. Creating, editing and approving a council charter and applicable policies becomes an automated, step-by-step process to simplify and speed the board’s work.
• BoardEffect can be accessed on personal devices, including Apple and Android devices, allowing teams to work either together or asynchronously, from their homes, offices or elsewhere.
• Councils, committees and other workgroups can meet easily and privately in secure workrooms for team discussions.

Advisory councils likely have a valuable role to play at your organization, and we at Diligent are here to support everyone who forwards your nonprofit’s work. BoardEffect has the features your teams need to work together and build the strongest possible outcomes for the mission of your organization.