Updated guidelines on good governance for community and not-for-profit organisations have been released as the aged care sector faces increased scrutiny and a royal commission.
The Australian Institute of Company Directors says the new benchmarks reflect changes in the sector since they were first released in 2013 and recognise heightened expectations of good NFP governance.
“Australians expect NFPs to be governed to the highest of standards, and the way they are run is increasingly being scrutinised,” AICD managing director Angus Armour said in a statement.
“In recent years, great attention has been paid to the governance of not-for-profits and its role in maintaining the community’s trust and in preventing misconduct, particularly against vulnerable people.
“It is fair to say that good governance has never been more important for the not-for-profit sector.”
The guidelines are aimed at directors but will also be useful for managers, staff and volunteers, AICD says, and provide a practical framework to help NFPs understand and achieve good governance.
They cover a range of areas including conflict of interest, organisational culture and risk management, as well as supporting practice and guidance.
Ten principles of good governance
- Purpose and strategy
- Roles and responsibilities
- Board composition
- Board effectiveness
- Risk management
- Accountability and transparency
- Stakeholder engagement
- Conduct and compliance
The guidelines can be downloaded here.
Further governance guidelines are available from resources section of the Australian Charities and Not-for-profits Commission website .
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