New guide for NFP directors


After a thorough consultation process, the Australian Institute of Company Directors has launched its Good Governance Principles and Guidance, specifically tailored for not-for-profit (NFP) organisations.

"The objective of the principles and guidance is to share with the NFP community a framework that we believe offers a useful starting point for NFP boards when considering what constitutes good governance practice," says Company Directors CEO and managing director John Colvin.

The principles and guidance take into account the considerable diversity of the NFP sector and can be tailored to the particular circumstances of different NFPs. The aim was to ensure that each principle is not prescriptive and, most importantly, can be used across differently as organisations matured and develop.

As Derris Gillam, chairman of the Heart Foundation Tasmania Division, notes, the principles and guidance were developed after a lengthy consultation process in the NFP sector.

This process included consultation within Company Directors' committees and division councils; roundtables with NFP directors and representatives across metropolitan and regional Australia; and online public consultation for all interested stakeholders.

Melanie Raymond, chairman of Youth Projects, believes the principles and guidance will be a critical tool for the NFP sector which is typically challenged by a lack of resources.

"They can be accessed free of charge by all boards and directors operating in the NFP sector and will drive a conversation about how good governance can deliver better outcomes for the organisation, and ultimately the community," she said.

The 10 principles that Company Directors believes provide a useful starting point for NFPs to understand what constitutes good governance cover:

  • Roles and responsibilities.
  • Board composition.
  • Purpose and strategy.
  • Risk – recognition and management.
  • Organisational performance.
  • Board effectiveness.
  • Integrity and accountability.
  • Organisation building.
  • Culture and ethics.
  • Engagement.

If you have any questions in relation to the principles and guidance please contact Company Directors' NFP team on 02 8248 6600 or email: nfp@companydirectors.com.au.


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