Youth Venture

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 a 501(c)(3), non-taxable, 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: Non Profits and For Profit Businesses."

Advisory Council:

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 a lot 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. Look for members with community connections, fundraising experience, or skills relevant to your Venture.

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 and http://www.mncn.org/info/FAQ_gov.htm.

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