Company Directors takes a leadership role in developing governance guidelines for NFPs
- Date:21 May 2012
- Type:Media Release
Last week’s announcement by Assistant Treasurer David Bradbury and the Minister for Social Inclusion, Mark Butler, to delay implementation of governance standards in the forthcoming Australian Charities and Not-For-Profits Commission (ACNC) legislation highlights the complexities involved in regulating the not-for-profit (NFP) sector, the Australian Institute of Company Directors said.
“We welcome the Government’s decision to delay implementation and conduct further public consultation on governance standards for charities,” said Australian Institute of Company Directors’ Chief Executive Officer, John Colvin.
“The Government has said they are committed to smarter regulation for the NFP sector and we believe they should conclude, through their future consultations, that a sector-driven response is the best approach to foster good governance of NFPs.
“Legislation will never be able to cater for the wide range of organisational forms, missions and activities of differing size and complexity that exists in the NFP sector. A ‘one-size-fits-all’ approach, even mandated principles, simply will not work, and could have unintended consequences” he said.
“What the Government should be asking themselves is: what is the best approach to foster an environment of good governance in charities and other NFP organisations? A ‘black letter law’ approach, even if principles based, is not the answer.”
Colvin announced that Company Directors will take a leadership role in the development of principles and guidelines for the NFP sector, to be published by the end of 2012.
“As Australia’s pre-eminent organisation for directors, with a significant portion of our 31, 000 members currently serving on NFP boards, we are uniquely placed to provide NFP boards and directors with guidance on achieving good governance. This will extend the work we have already undertaken in the sector, such as our educational offerings and the Directors Social Impact Study.
“General governance principles and guidelines is the right solution to foster good governance in the sector. This is in the best interest of all Australians.
“The principles and guidelines we develop will allow the NFP sector to adopt an appropriate set of governance arrangements for their own individual circumstances, and adapt these over time as conditions warrant,” he said.
Colvin said Company Directors intends to consult widely with its membership and the broader NFP sector on the issues from July this year.
“We want to ensure that our membership and others have an opportunity to contribute to this important initiative. The diversity within the sector requires thorough and meaningful consultation to help ensure the final principles and guidelines are appropriate,” he said.
Download the above media release, 'Company Directors takes a leadership role in developing governance guidelines for NFPs' (PDF 100KB)
Matt Pritchard, Communications Advisor, 02 8248 6624.