GOOD GOVERNANCE
PRINCIPLES AND GUIDANCE
for Not-for-Profit Organisations
Promoting good governance and supporting directors and boards of not-for-profit
organisations
Presented by Phil Butler
GOOD GOVERNANCE PRINCIPLES AND GUIDANCE
for Not-for-Profit Organisations
2
Australian Institute of Company Directors
•
Australia’s professional organisation for directors
- More than 33,000 members
• Members from:
-Private (for-profit) commercial companies
- Not-for-profit (NFP) organisations
- Government entities
Phil Butler – 9 October 2013
GOOD GOVERNANCE PRINCIPLES AND GUIDANCE
for Not-for-Profit Organisations
3
Our Role
“To provide leadership on director and governance issues
to achieve a positive impact for the sector,
economy and society.”
Phil Butler – 9 October 2013
GOOD GOVERNANCE PRINCIPLES AND GUIDANCE
for Not-for-Profit Organisations
4
Our Commitment to the NFP Sector
•
To support organisations in the NFP sector to achieve their respective
missions through ongoing improvements in governance
•
Build greater awareness of the contribution of NFP directors and
support their ongoing professional development
Phil Butler – 9 October 2013
GOOD GOVERNANCE PRINCIPLES AND GUIDANCE
for Not-for-Profit Organisations
5
Ten Principles that promote good governance
• The Principles are designed to assist directors and boards in their conversation
on good governance and how they can implement practical approaches in
improving governance within their organisation.
Questions for consideration
• The Questions are designed to enable boards to discuss key issues and determine
if they are relevant to the organisation. They are not designed to be
recommendations.
Phil Butler – 9 October 2013
GOOD GOVERNANCE PRINCIPLES AND GUIDANCE
for Not-for-Profit Organisations
6
Ten Principles that promote good governance
1.
Roles and Responsibilities - The need for clarity
2. Board Composition - The right group of people
3. Mission and Strategy - An appropriate vision, purpose and set of strategies
4. Risk - Recognition and management, appropriate risk oversight
5. Organisational Performance - A focus on effective use of resources
6. Board Effectiveness - Appropriate board structures and processes
7.
Integrity and Accountability - The right information at the right time
8. Organisation Building - Build and maintain organisational capability to deliver on purpose
9. Culture and Ethics - A healthy culture in the boardroom and throughout the organisation
10. Engagement - Effective stakeholder engagement
Phil Butler – 9 October 2013
GOOD GOVERNANCE PRINCIPLES AND GUIDANCE
for Not-for-Profit Organisations
7
Key Issue 1 – Mission
• The role of directors in determining appropriate strategy in line with the
mission (Principle 3)
• The role of directors in determining and monitoring appropriate
performance indicators (Principle 5)
• Better governance equals better outcomes
Phil Butler – 9 October 2013
GOOD GOVERNANCE PRINCIPLES AND GUIDANCE
for Not-for-Profit Organisations
8
Key Issue 2 – Financial Sustainability
• The role of directors in ensuring the financial sustainability of the
organisation and effectively using its resources (Principle 5)
• The role of directors in risk oversight (Principle 4)
• Reliance on Government Funding
• Insolvent Trading
Phil Butler – 9 October 2013
GOOD GOVERNANCE PRINCIPLES AND GUIDANCE
for Not-for-Profit Organisations
9
Key Issue 3 – Skill Sets
• Organisations need the right group of people (at the right time) to
govern the organisation (Principle 2)
• There should be clarity of the roles, responsibilities and expectations of
directors (Principle 1)
• There should be regular discussion around the effectiveness of the board
(Principle 3)
• Passion / Expertise
• Succession Planning in the Real World
Phil Butler – 9 October 2013
GOOD GOVERNANCE PRINCIPLES AND GUIDANCE
for Not-for-Profit Organisations
To obtain a copy visit:
www.companydirectors.com.au/goodgovernance
or email:
nfp@companydirectors.com.au
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