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Not-for-profit Good Governance Guide

The guide covers a range of topics essential for effective governance, including the responsibilities of boards, composition of boards, and the delegation of authority.

Governance Institute has recently released a comprehensive Good Governance Guide aimed at not-for-profit organisations. The Guide, titled “Authority and Delegation of Decision-Making in Not-for-profit Organisations,” addresses the challenges faced by NFPs in today’s environment and provides valuable insights into governance practices.

The release of this guide comes at a crucial time when not-for-profit organisations are grappling with significant challenges, including funding constraints and complex operating environments.

Megan Motto, CEO of Governance Institute, emphasised the importance of this document for NFP boards and directors in navigating these challenges effectively.

“In today’s rapidly changing landscape, not-for-profit organisations need robust governance frameworks to ensure accountability, transparency, and effectiveness,” said Megan Motto.

“Our Good Governance Guide provides practical guidance on key aspects such as board composition, delegation of authority, and board tenure, helping NFPs strengthen their governance practices and achieve their missions.”

The guide covers a range of topics essential for effective governance, including the responsibilities and composition of boards, and the delegation of authority. It also addresses the issue of board tenure, recommending a maximum of three terms for directors to balance continuity and fresh perspectives.

One of the key recommendations in the guide is the importance of diversity on boards, ensuring a variety of perspectives and skills to meet the organisation’s obligations effectively. It also emphasises the need for clarity in delegation of authority policies, stating that boards can never delegate their ultimate responsibility.

The guide is available on Governance Institute’s website for organisations seeking to improve their governance frameworks.

You can also hear more insights from NFP leaders at Governance Institute’s not-for-profit governance forum last year on Spotify.

 

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