Governance

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 and the organisation's rules. Essential elements of good governance are; good governance structure, good policies, processes and procedures and the right mix of people on boards or committees of management.

To find accurate, up to date information about your legislative requirements use the Not for Profit Compliance Support Centre.

Governance Capability Framework

The Community Sector Governance Capability Framework describes the broad capabilities required by people on Boards or Committees of Management in community sector organisations. It provides Board or Committee members with a common language for the knowledge and skills that are critical for the stewardship of an organisation, and also includes knowledge and skills required for particular roles on the Board, such as that of Board Chair:

Community Sector Governance Capability Framework Tool Kit (PDF 446 KB) or (Word 399 KB)
Community Sector Governance Capability Framework Facilitators Guide (PDF 1.5 MB) or (Word 130 KB)

The above publications are also available as a hard copy from the Victorian Government online bookshop

Case studies on how to use the Governance Capability Framework

The following organisations have implemented components of the Governance Capability Framework and have agreed to share their experience. The organisations below were selected for their diversity to demonstrate the Framework’s application to NFP organisations, large and small, providing services to a cross section of Victorians.

Below are more resources to assist you:

Governance structure

Some of the governance structure issues to consider are; the legal structure of your organisation, the development of an organisational constitution and the development of an organisational charter.

Resource
 Source
Starting a Not for Profit
 Not for Profit Compliance Support Centre
Governance and accountability Community Door
What is an Incorporated Association? Consumer Affairs Victoria
Should your club incorporate? Consumer Affairs Victoria
Become an Incorporated Association Consumer Affairs Victoria
Change, amalgamate or cancel an incorporated association Consumer Affairs Victoria
Effective Governance Effective Governance
The Constitution
 Leisure Networks
Governance Structure and Charter National Disability Services
Better Structures: Getting the nuts and bolts right Our Community
Boards, committees and governance centre Our Community
Choosing the right incorporated legal structure PilchConnect
Good Governance VicSport

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.

Resource
 Source
Boards and Committees
 Not for Profit Compliance Support Centre
Resolve a Dispute Consumer Affairs Victoria
Composition of the Committee
 Leisure Networks
The Boards Charter Kindergarten Parents Victoria
Committee Basics for independent Committees, incorporated sites and unincorporated sites Kindergarten Parents Victoria
Committee Basics: The Handover Kindergarten Parents Victoria
Committee Works Kindergarten Parents Victoria
Board Basics: Before you join a Board Our Community
Board Building: Recruitment, Induction, Training and Succession Our Community
Better Members: Boosting your own effectiveness Our Community
Better Boards: Assessing and improving you Board Our Community
Troubleshooting: Fixing common Board problems Our Community
Board-Staff-Volunteers: Managing the Relationships Our Community
Board Responsibilities: Fulfilling your governance role Our Community
Trustee Handbook: Roles and duties of Trustees of Charitable Trusts and Foundations in Australia Philanthropy Australia
What are 'Office Holders'? PilchConnect
Guide to legal duties for not-for-profit Committee members in Victoria PilchConnect
Positions in an Incorporated Association PilchConnect
Guide for Public Officers and Secretaries of Victorian Incorporated Associations PilchConnect
Are there other legal obligations that committee of management members shouls be aware of PilchConnect
What is a Committee of Management? PilchConnect

Meetings

Resource
 Source
Reponsibilities of an Incorporated Association: Annual General Meeting Consumer Affairs Victoria
Conducting Meetings
 Leisure Networks
Meeting Documentation
 Leisure Networks
Committee Basics: The Annual General Meeting Kindergarten Parents Victoria
Board Business: Towards more effective meetings Our Community
Meetings of a Victorian Incorporated Association
 PilchConnect
How to run an AGM: A guide for Victorian Community Legal Centres VCOSS Clearinghouse

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 and are relevant in terms of current legislation and regulation.

Resource
 Source
Policy development
 Australian Sports Commission
Information Communication Technology (ICT) Policies iTaNGO
PolicyWorks V2 Kindergarten Parents Victoria
Governance Tips: Good Governance and Policy Kindergarten Parents Victoria
Policy Bank Our Community
Policies and guides VicSport

Financial responsibility and accountability

Resource
 Source
Managing your finances
 Not for Profit Compliance Support Centre
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
Enhancing not-for-profit annual and financial reporting Institute of Chartered Accountants in Australia
Financial Management
 Leisure Networks
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
Financial Reporting PilchConnect
Financial problems and insolvency PilchConnect
Document retention requirements for community organisations PilchConnect
ATO Induction package for NFP administrators VCOSS Clearinghouse

Strategic Planning

Resource
 Source
Community collaboration: The changing context of local government and community sector partnerships (PDF 169KB) or (Word 365KB)
 Office for the Community Sector
Strategic planning
 Australian Sports Commission
Governance and ICT Planning iTaNGO
Planning
 Leisure Networks
Resources for Boards of Management: Strategic Planning National Disability Service
Strategic Planning: Mapping your group's future Our Community

Risk Management and Occupational Health and Safety

Resource
 Source
Managing people
 Not for Profit Compliance Support Centre
Managing risks
 Australian Sports Commission
Business Continuity Management Funded Agency Channel
Risk Management
 Leisure Networks
Resources for Boards of Management: Risk Management National Disability Service
OHS PilchConnect
Safety and prevention
 Worksafe

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