The traditional concept of IT Disaster Recovery (DR), i.e. the solution where an organisation sets up an alternate site where servers, applications an...
How to solve complex problems with integrated leadership teams that harness the power of many. The world is an increasingly complex place to navigate,...
Articles on Governance and Leadership in Purpose Driven Organisations.
Non-Profit Fact Sheets
What is an Organisation formed by Royal Charter or by Special Act of Parliament?
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. An organisation formed by royal charter or by special Act of parliament are two possible structures of a non-profit organisation. Find out more about the other types of legal structures.
Better Boards
Governance
Board Buddies
One of the biggest complaints made against non-profit organisations by members is that they are not consulted and not informed about what is happening. As the non-profit sector continues to develop, there has been a move away from boards made up of representative directors towards boards comprising independent, skills-based directors. While most would applaud this development, there have been a number of unintended consequences. The first has been a degree of separation anxiety.
Paul Grogan
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.
Michael Gorton
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 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. Trusts Trusts are legal structures established to hold and distribute funds according to the legal requirements of the trust’s deed.
Book Review
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.
Julia Duffy
Board Recruitment
Director Recruitment – The Habitat for Humanity Approach
No longer are board positions in not-for-profits simply given to a willing friend of the Board or CEO. Recruiting directors with the right values, skill, experience and commitment is one of the key responsibilities and most important undertakings of a board and is arguably even more important for not-for-profit (NFP) boards. Search and selection of directors with the right skills to contribute to the growth and development of Habitat for Humanity Australia (HFHA) is challenging as we operate in an increasingly complex environment with greater compliance burden and higher expectations of efficiency, accountability and transparency.
Chris Franks
Directors at Work: A Practical Guide for Boards
Directors at Work: A Practical Guide for Boards by Geoffrey Kiel, Gavin Nicholson, Jennifer Ann Tunny and James Beck is a substantive reference manual for all types of board directors. Directors at Work is a generous text, both in size and in breadth of content. The 818-page book addresses a huge range of issues applicable to directors and offers a practical approach to each. Directors at Work is not the type of book you should attempt to read over a weekend (as I did), nor is it something you should scramble to speed read before your first board meeting.
Board Performance & Metrics
How To Perform a Self-Health Check-up for NFPs
“How do we know that we are doing well?” “Do we really need to ask and pay someone else to say that we are a healthy organisation or an organisation in need of help?” “We did ask someone else before about whether we are performing well or not, and we realized that we knew all the answers when the outsider started to talk about the solutions we were searching for. We didn’t exactly know the questions though.
Albert Kuruvila
Committee vs Board – What is Your Role?
The governance structures of not-for-profit organisations in Australia have never been more under the microscope than at present. At the Commonwealth level, major reform is underway concerning the regulation of the NFP sector, initiated by the Productivity Commission Report 2010. Initially, the newly established national regulator, the Australian Charities and Not-for-profits Commission (ACNC), will concentrate on our Charities, with a remit to remove complex regulations and onerous reporting burdens, to clarify the legal definition of charity and to provide greater transparency for funders and the public.
Linda Hayes