Steps to building governance capacity

Introduction

Like public companies, not-for-profit organisations are required to have a governing body — a board or management committee — that is responsible for providing the leadership and control that make up the governance of the organisation.

'Governance' provides an organisation with a way of:

• setting its direction
• achieving its purpose
• monitoring and controlling its activities
• making sure its people are accountable

The board or management committee is legally responsible for the wellbeing of the organisation, and people joining a board or management committee need to be prepared to take these responsibilities seriously. By law, they are expected to understand their governance responsibilities and to carry out these duties with care and to the best of their abilities.

They are also required to be honest and ethical and to always act in the best interests of the organisation. This means declaring any personal interest that might conflict with the interests of the organisation or their responsibilities as a member of the board or management committee.

The job of members of boards or management committees is to ensure that:

• the organisation follows its aims, objectives and rules
• the business of the organisation is conducted honestly and with integrity
• the organisation complies with relevant legislation and meets any contractual obligations
• the organisation keeps proper financial records and remains financially solvent

Content on this page developed by Bradfield Nyland Group and Spall Watters Group