The Australian Institute of Company Directors, as part of its commitment to the Not-for-Profit (NFP) sector and its directors, has developed the Good Governance Principles and Guidance for Not-for-Profit Organisations (the Principles and Guidance).

The Principles and Guidance
  • Are designed to assist boards in determining what constitutes good governance practice for their organisations.
  • Are designed to promote and facilitate the crucial conversations and associated activities NFP organisations undertake regularly to achieve good governance.
  • Are not an attempt to formulate rules on what might constitute good governance practice for NFP organisations, or prescribe related behaviours and specific actions.

How the publication can be used

Ten Principles – one way in which an organisation can use the Principles and Guidance is by focusing on the Principles one at a time over a series of board meetings. This format may be useful for organisations where directors are less experienced in governance or have concerns around particular issues.

Questions for Consideration – a key aspect of the Principles and Guidance are questions for consideration. The questions for consideration are designed to enable boards to consider the governance needs of their own organisations.

The Guide covers ten principles that promote good governance:

  • Roles and Responsibilities – The need for clarity
  • Board Composition – The right group of people
  • Purpose and Strategy – An appropriate vision, purpose and set of strategies
  • Risk – Recognition and management of appropriate risk oversight
  • Organisation Performance – A focus on effective use of resources
  • Board Effectiveness – Appropriate board structures and processes
  • Integrity and Accountability – The right information at the right time
  • Organisation Building – Build and maintain organisational capability to deliver on purpose
  • Culture and Ethics – A healthy culture in the boardroom and throughout the organisation
  • Engagement – Effective stakeholder engagement