Governance and Legal Risk Management

The terms governance, clinical governance and legal risk are much bandied about but hold different meanings for different people. Some of the possible interpretations include:- Minimising Liability – particularly steps to reduce liability and exposure. Accountability – improving accountability and transparency within organisations, particularly decision making. Risk management – dealing with legal risk, financial risk and business risk within an enterprise. Compliance – meeting statutory, regulatory and other requirements. In the usual context legal risk management relates to how boards can be satisfied that risks and liabilities within an enterprise are being addressed.

What is the difference between a not-for-profit and a non-profit organisation?

There is no difference between a non-profit organisation and a not-for-profit organisation. These two terms are simply different ways of describing the same type of entity. There are several more terms that are sometimes used to describe these types of organisations and the sector they constitute, these include: for-purpose, third sector, community business, civil society, non-governmental, social-benefit. The abbreviations for these terms are also used, including: NFPs (not-for-profits), NGOs (non-governmental organisations), NPOs (non-profit organisations), NPIs (non-profit institutes).

What is an Unincorporated Association?

When establishing a non-profit organisation, founders can choose from a large range of legal forms. An organisation’s legal structure will determine the types of activities it is legally able to carry out and which government bodies it is required to seek registration from or report to. Unincorporated associations are one possible structure of a non-profit organisation. Find out more about the other types of legal structures here. Unincorporated associations are the simplest form that a non-profit organisation can take.

What is an Incorporated Association?

When establishing a non-profit organisation, founders can choose from a large range of legal forms. An organisation’s legal structure will determine the types of activities it is legally able to carry out and which government bodies it is required to seek registration from or report to. Incorporated associations are one possible structure of a non-profit organisation. Find out more about the other types of legal structures here. An incorporation is a formal legal structure adopted by a large range of non-profit organisations in Australia.

What is a Cooperative?

When establishing a non-profit organisation, founders can choose from a large range of legal forms. An organisation’s legal structure will determine the types of activities it is legally able to carry out and which government bodies it is required to seek registration from or report to. Cooperatives are one possible structure of a non-profit organisation. Find out more about the other types of legal structures here. Cooperatives are a form of organisation that are democratically owned, controlled and often also used by members.

What is a Company Limited by Guarantee?

When establishing a non-profit organisation, founders can choose from a large range of legal forms. An organisation’s legal structure will determine the types of activities it is legally able to carry out and which government bodies it is required to seek registration from or report to. A company limited by guarantee is one possible structure of a non-profit organisation. Find out more about the other types of legal structures here.

What is a Charitable Trust?

When establishing a non-profit organisation, founders can choose from a large range of legal forms. An organisation’s legal structure will determine the types of activities it is legally able to carry out and which government bodies it is required to seek registration from or report to. A charitable trust is one possible structure of a non-profit organisation. Find out more about the other types of legal structures here. Trusts Trusts are legal structures established to hold and distribute funds according to the legal requirements of the trust’s deed.

What is an Indigenous Corporation?

When establishing a non-profit organisation, founders can choose from a large range of legal forms. An organisation’s legal structure will determine the types of activities it is legally able to carry out and which government bodies it is required to seek registration from or report to. Indigenous Corporations are one possible structure of a non-profit organisation. Find out more about the other types of legal structures here. Indigenous Corporations are overseen by the Office of the Registrar of Indigenous Corporations (ORIC) an independent statutory officer holder appointed by the Minister for Indigenous Affairs under the Corporations (Aboriginal and Torres Strait Islander) Act 2006.

What is a board?

“Board” is one of several names used to signify the group of people assigned the responsibility to govern an organisation, company or other similar entity. A board is a legal requirement of a number of different forms of for-profit and non-profit organisations. Your organisation’s board might be called the board of directors, board of trustees, committee, management committee, council, governing body, responsible entity, or one of a variety of other names, depending on your organisation’s legal form or constitutions.

Financial Statements Demystified — Book Review

David Hey-Cunningham’s Financial Statements Demystified was written for business and non-profit leaders who have a limited formal understanding of financial statements and accounting principles. With this book, Hey-Cunningham seeks to provide readers with a basic introduction to these matters in order to assist them to better understand their organisation or business and, in turn, for those enterprises to become more successful and sustainable. Although this text is not specifically aimed at non-profit organisations it is invaluable as an Australian resource on financial statements and financial management that is easily as relevant to the non-profit sector as to the business world.