Governance
"Good governance is not an outcome, it's a process; there is never a point of perfection as it organically ebbs and flows."
The term 'governance' refers to a NFP community organisation's board and its collective legal responsibility as an incorporated association, company limited by guarantee or cooperative, according to the Associations Incorporation Act 1981, and the organisation's rules.
Essential elements of good governance are:
- Good governance structure
- Good policies, processes and procedures
- The right mix of people on boards or committees of management
- Governance structure
- Boards
- Policies, procedures and processes
- Financial responsibility and accountability
- Other governance resources
Governance structure
"...the development of a board and its governance structure must be organic and aligned to the organisation's requirements and mission."
Some of the big governance structure issues to consider are:- the legal structure of your organisation
- the development of an organisational constitution
- the development of an organisational charter
- Better Structures: Getting the nuts and bolts right (Our Community)
- Governance Structure and Charter (National Disability Services)
- What is an Incorporated Association? (Consumer Affairs Victoria)
- Choosing the right incorporated legal structure (PIlchConnect)
- Should your club incorporate? (Consumer Affairs Victoria)
- Become an Incorporated Association (Consumer Affairs Victoria)
- Change, amalgamate or cancel an incorporated association (Consumer Affairs Victoria)
Boards
The governing body of an incorporated association is called a "Board", a "Committee of Management" (CoM) or a "Council". Legally, an incorporated association must have rules relating to the Board.Where to find general information about Boards:
- What is a Committee of Management? (PilchConnect)
- Board Basics: Before you join a Board (Our Community)
- Board Charter(Effective Governance)
- The Boards Charter (Kindergarten Parents Victoria)
- Better Boards: Assessing and improving you Board (Our Community)
- Board-Staff-Volunteers: Managing the Relationships (Our Community)
- Committee Basics for independent Committees, incorporated sites and unincorporated sites (Kindergarten Parents Victoria)
- Trustee Handbook: Roles and duties of Trustees of Charitable Trusts and Foundations in Australia (Philanthropy Australia)
- Board Responsibilities: Fulfilling your governance role (Our Community)
- Guide to legal duties for not-for-profit Committee members in Victoria (PilchConnect)
- Are there other legal obligations that committee of management members shouls be aware of? (PilchConnect)
- Troubleshooting: Fixing common Board problems (Our Community)
Board membership information:
- Responsibilities of an incorporated association (Consumer Affairs Victoria)
- Board Building: Recruitment, Induction, Training and Succession (Our Community)
- What are 'Office Holders'? (PilchConnect)
- Positions in an Incorporated Association (PilchConnect)
- Guide for Public Officers and Secretaries of Victorian Incorporated Associations (PilchConnect)
- Better Members: Boosting your own effectiveness (Our Community)
- Committee Basics: The Handover (Kindergarten Parents Victoria)
- Committee Works (Kindergarten Parents Victoria)
Policies, procedures and processes
Policies are agreed sets of rules and procedures with a common purpose that are critical to good governance. Your organisation's policies should provide information about what you do and, in some cases, what you don't.
It is the responsibility of the Board to ensure that policies are developed that:
- best meet the needs of your organisation's clients and staff
- reflect the values, belief and philosophy of your organisation
- are relevant in terms of current legislation and regulation.
Useful resources:
- Policy Bank (Our Community)
- Policies and guides (VicSport)
- PolicyWorks V2 (Kindergarten Parents Victoria)
- Governance Tips: Good Governance and Policy (Kindergarten Parents Victoria)
- Information Communication Technology (ICT) Policies (iTaNGO)
Financial responsibility and accountability
- Victorian Standard Chart of Accounts (Department of Planning and Community Development)
- Taxation information for not-for-profits (Australian Taxation Office)
- The non-profit news service (Australian Taxation Office)
- Responsibilities of an incorporated association: Financial Year and Accounting and Auditing (Consumer Affairs Victoria)
- Governance and Accountability (Community Door)
- Cashbook (Kindergarten Parents Victoria)
- BudgetWorks V2 (Module 1 of Finance Works) (Kindergarten Parents Victoria)
- Finance Reports (Module 2 of Finance Works) (Kindergarten Parents Victoria)
- Understanding Finances: A guide for Community Group Board Members (Our Community)
- Guide for Community Treasurers (Our Community)
- Financial Reporting (PilchConnect)
- Financial problems and insolvency (PilchConnect)
- ATO Induction package for NFP administrators (VCOSS Clearinghouse)
- Fees, forms and online transactions (Consumer Affairs Victoria)
- Enhancing not-for-profit annual and financial reporting (The Institute of Chartered Accountants in Australia)
- Document retention requirements for community organisations (PilchConnect)
Other Governance Resources
Useful links:
- Not for Profit Compliance Support Centre
- Good Governance (VicSport)
- Governance and accountability (Community Door)
- Boards, committees and governance centre (Our Community)
- Support for not for profit directors (Australian Institute of Company Directors)
Strategic Planning:
- Governance and ICT Planning (iTaNGO)
- Resources for Boards of Management: Strategic Planning (National Disability Service)
- Strategic Planning: Mapping your group's future (Our Community)
Fundraising:
- Fundraising made simple (Kindergarten Parents Victoria)
Risk Management:
- Business Continuity Management (DHS Funded Agency Channel)
- Resources for Boards of Management: Risk Management (National Disability Service)
Occupational Health and Safety:
- OHS (PilchConnect)
Staff:
- Board-Staff-Volunteers: Managing the Relationships (Our Community)
Meetings:
- Reponsibilities of an Incorporated Association: Annual General Meeting (Consumer Affairs Victoria)
- Committee Basics: The Annual General Meeting (Kindergarten Parents Victoria)
- Holding Annual General Meetings (PilchConnect)
- Board Business: Towards more effective meetings (Our Community)
- How to run an AGM: A guide for Victorian Community Legal Centres (VCOSS Clearinghouse)
Troubleshooting:
- Resolve a Dispute (Consumer Affairs Victoria)
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