Governance 

Governance in the context of not-for-profit organisations in Australia refers to the systems, processes, and principles by which an organization is directed, administered, and controlled. In simple terms, it refers to the way an organisation is run, ensuring that it achieves its goals, complies with legal and ethical standards, and is accountable to its stakeholders. 

For not-for-profit organisations in Australia, governance is crucial for ensuring that the organisation operates effectively and efficiently, and for demonstrating accountability to stakeholders such as members, donors, funders, and the public. Effective governance helps ensure that resources are used appropriately, and that the organisation's purpose and objectives are fulfilled. 

Some of the key elements of governance in the not-for-profit sector in Australia include: 

• A clear mission and strategic plan that outlines the organisation's goals and objectives 

• A well-defined organisational structure, including the roles and responsibilities of directors, officers, and staff 

• Policies and procedures for decision-making and accountability 

• A clear code of ethics or values that guides the behaviour of the organisation and its members 

• A transparent system for reporting and accountability, including regular financial reporting, board meetings, and annual general meetings 

• A system for risk management, to identify and mitigate risks to the organisation 

• Effective communication with stakeholders, including members, donors, and the public 

 Head to the Best Practice section in our Tools & Resources page for links to essential information on the subject.