Boards of Directors and Advisory Councils are another way to incorporate volunteers into your Venture as well as get advice and guidance from outside sources. A Board of Directors or Advisory Council can support Ventures by providing feedback, bringing new ideas, and thinking of strategic ways to improve the Venture.
Board of Directors:
Both for-profit and nonprofit corporations are required by law to have a governing Board of Directors. This creates an accountability structure for the organization, as shareholders or members of the public help to oversee the work being done. That means that if your Venture incorporates as nonprofit entity, you are required by law to set up a Board of Directors. Boards of Directors for nonprofit organizations have a legal obligation to the organization they oversee. For more information on how to legally become a non-profit entity, see the Youth Venture tip sheet “Taking the Next Step: Nonprofits and For Profit Businesses.”
Advisory Councils:
An Advisory Council is similar to a Board of Directors, except without the legal responsibilities. If your Venture does not decide to become a legal entity, you may want to consider forming an Advisory Council to help with event planning, fundraising, or any other major aspect of your work that takes lots of strategic thinking and people-power. Unlike your Venture team, an Advisory Council usually meets only once a month, with some work in between. An Advisory Council member typically commits 3-6 hours per month to the group they’re supporting. Advisory Councils can be a great way to pull in talented or experienced individuals with limited time to support your cause.
As a general rule, it’s a good idea to have a lawyer, someone with expertise in your field, and individuals with extensive networks on your board or council.
For more information on the legal obligations of Boards of Directors, or to learn how to legally set up a Board of Directors or Advisory Council, check out these online resources:
http://www.managementhelp.org/boards/boards.htm
http://www.mncn.org/info/FAQ_gov.htm
© Youth Venture, 2007. All rights reserved.
Re: Boards of Directors and Advisory Councils
Did not know that! Thanks!!
Re: Boards of Directors and Advisory Councils
It is very helpful to have additional input from all venturers and learn from the experience of others!
Re: Boards of Directors and Advisory Councils
I recently learned of a Venture Team that uses its board as Allies for its Team. Team Leaders are each connected with one member of the board in a mentor like relationship ie a Team member interested in being a lawyer works with the board member who is a lawyer. This way, the board member feels a strong connection with the Team and the Team is learning as much as possible from the board. What other suggestions do you have for working with boards and advisory councils?
Re: Boards of Directors and Advisory Councils
I am brand new to all of this, but do have a question here. If we start a venture and down the road decide to incorporate and become an official non profit, will we still be bound by YV rules and obligations and be a part of YV or will we simply be our own seperate entity at that point?
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