Articles

The Continuing Convergence of Governance Between Not-for-profit and For-profit Boards

The Role of Government Reform in the Continuing Convergence of Governance Between Not-for-profit Boards and For-profit Boards The convergence of governance of not-for-profit boards towards the modes of governance more typically seen in for-profit boards continues to gather pace as part of a broader, although not entirely consistent, pattern of convergence of corporate governance globally. Whilst this convergence reflects a range of expectations or demands imposed, either directly or indirectly, by various stakeholders of not-for-profit organisations, government, as the only common stakeholder across the whole of the not-for-profit sector, has played an increasingly pivotal role in this process and in particular, a multitude of government reforms have been at the centre of this on-going convergence.

Passion and Professionalism: Legal Duties of a Volunteer Board

Identify what you’re missing… and then work out how to get it! Effective not-for-profit boards possess a winning combination of passion and professionalism. It is crucial that all board members understand the personal legal responsibilities they assume when they become a director of a board. Regardless of their connection to the cause, a person should not accept a directorship or remain as director without the appropriate skills and competence to perform their role.

Board Perspectives: Key Skills for Making Constructive Contributions

Board effectiveness and competency are influenced by a great many factors. Arguably a critical factor is the skills held by board members and how these are used in concert to strengthen both the board and the organisation. To get to the bottom of what key skills should be required of all board members in order to contribute effectively in the boardroom, we put the word out to our network. We asked board members from a range of Australian non-profit organisations their perspective on this issue and the results were fascinating.

Inside Tips for Creating a Strategic Board

This article was written by Elise Sernik and Barb Barkley of Leadership Space Many leaders want to create a better board for their organisation but are stumped as to how to go about it in a way that fits with their values. Whether you are a Chair, Director or CEO, the prospect of trying to take your board on a journey of self-improvement leaves many people feeling some combination of wary, overwhelmed and even just plain queasy!

Distressed Balance Sheets – The Board’s Role

“Things are pretty tough in the market these days”. How often do we hear that? I’ve rarely heard anyone say over the years that “conditions are ideal right now”. Whether you are a commercial business or NFP organisation, staying in business is tough. Cash is hard to come by from government, donations or trading activity, so it’s inevitable that financial challenges arise from time to time in many organisations. In some cases, this can be an isolated hiccup, but in other, it is the sign of a more serious structural failing of the organisation’s finances.

Why Good Boards Behave Badly - Improving Your Board’s Performance Through Best Practice Boardroom Behaviours

High-performing boards know that organisational sustainability is reliant upon vigilant monitoring of key performance indicators. Similarly, boards need to review their performance against best practice governance frameworks. However, one critical corporate governance indicator of best practice is often overlooked. The unexpected board performance indicator In 2009, Sir David Walker1 reviewed corporate governance in UK banks in light of corporate collapses. The terms of reference for the review were broad with the government seeking recommendations for a framework for best practice corporate governance.

UPDATED – ATO Putting NFPs to the Test: Two Additional Tests for Income Tax Exemption

The Australian Taxation Office (“ATO”) released the final version of its Taxation Ruling on the two additional tests for income tax exemption for NFPs in TR 2015/1 on 25 February 2015. This article is an updated version of an article published in the Better Boards Newsletter of 9 February 2015, which deals with the predecessor Draft Ruling TR 2014/D5. Read the original article. In June 2013 the then Labor Federal Government amended the Income Tax Assessment Act 1997 (“the Tax Act”) to introduce two additional tests which NFPs need to satisfy for income tax exemption.

ATO Putting NFPs to the Test: Two Additional Tests for Income Tax Exemption

Please note: An updated version of this article that discusses the final version of the Ruling issued on 25 February 2015 as TR 2015/1 Income Tax: special conditions for various entities whose ordinary and statutory income is exempt is now available. Read the updated version. In June 2013 the then Labor Federal Government amended the Income Tax Assessment Act 1997 (“the Tax Act”) to introduce two additional tests which NFPs need to satisfy for income tax exemption.

It’s Not in the Tea Leaves – It’s in the Minutes

The ubiquitous Board Agenda and its progeny, the Minutes are often assigned to a spring back folder and buried on a shelf somewhere. A board meeting and its record, once distributed, approved and stored, can take on an inert, colourless and even meaningless hue only fit for the corporate archives. The Minutes rarely engender much interest let alone controversy except for the anally retentive member who salivates over grammatical boo boos or misspellings.

The Critical Dos and Don’ts of NFP Board Recruitment

We have all struggled with recruitment and we know that the smaller our organisation the greater our responsibility to get it right. We also know that many more people today are keen to find a board role so identifying the right candidate is even more challenging. In my experience there are a couple of overarching principles that guide the appointment of directors: First, candidate skills and experience must closely match the position requirements without compromise, as your board needs the best new director available.