New Tailored Principles for NFP Boards
Tuesday, 18th June 2013 at 12:28 pm
A new set of guidelines and framework has been designed specifically for the Not for Profit sector to assist NFP Boards with good governance practice.
The Australian Institute of Company Directors launched the Good Governance Principles and Guidance to assist NFP Boards with governance in a range of diverse circumstances.
Chief Executive Officer and Managing Director of the Australian Institute of Company Directors, John Colvin said the Principles and Guidance take into account the considerable diversity of the NFP sector.
“The objective of the Principles and Guidance is to share with the NFP community a framework that we believe offers a useful starting point for NFP boards when considering what constitutes good governance practice,” he said.
“Individual boards and organisations are able to tailor the Principles having regard for their particular circumstances,” he said.
Heart Foundation Chair Tasmania Division, Derris Gillam, said the Principles and Guidance have been the subject of a lengthy consultation process in the sector.
“It’s critical that these Principles have been developed by the industry, which demonstrates the sector’s commitment to good governance,” he said.
“They will play a vital role in helping organisations strengthen the solid foundation that has been set by directors and boards in the sector, who are largely voluntary.”
The 2012 Directors Social Impact Study, conducted by Curtin University on behalf of Company Directors, found there were no discernable differences between the governance effectiveness of Not for Profit and for-profit boards.
Chair of Youth Projects Limited, Melanie Raymond, said the Principles and Guidance were a critical tool for the community sector, which is “typically challenged by a lack of resources”.
“The NFP sector makes a significant social contribution to Australian society but is seriously under-resourced,” she said.
The Principles and Guidance can be accessed free of charge by all Boards and directors operating in the NFP sector.
The 10 Principles that Company Directors believes provide a useful starting point for NFPs to understand what constitutes good governance cover:
- Roles and responsibilities
- Board composition
- Purpose and strategy
- Risk – recognition and management
- Organisational performance
- Board effectiveness
- Integrity and accountability
- Organisation building
- Culture and ethics
A full copy of the Principles and Guidance can be downloaded on the Company Directors website.