Here are a few steps that any NFP can take to improve their governance.

1.       Follow the Rule of Law

Ensure that your board members are fully trained in what is legally required of them in terms of reporting obligations to appropriate boards and legal bodies.

The Australian Tax Office has a handy checklist that can help ensure that your not for profit keeps up with the paperwork and forms that are required of not for profits. CPA Australia also has resources for not for profits that can help them learn more about matters such as compliance, financial management and instituting controls to both safeguard and track donations and assets.

It’s also helpful to have board members that can also serve as “experts” in various areas, such as legal and accounting questions.  If there is no one on your board with the required experience, actively seek volunteers with these qualities or consider hiring an attorney and accountant that can advise your board on these matters.

While not for profit normally do not draw public attention when they follow the law and fulfill their responsibilities, they certain come to the forefront when they fail to do so. Protect your not for profit’s reputation and longevity by taking steps to ensure it is in compliance with its legal responsibilities and fiduciary duties. 

2.       Conduct Business in the Open

To increase public confidence and trust in your not for profit, seek to make as many of its processes as transparent as possible. Hold regular, open board meetings and give everyone a voice when they may be affected by the decisions and actions of your not for profit. Not only will this build your organisation’s reputation, it will minimise the ability of others in the group to secretly commit acts that could endanger the survival of your not for profit.

3.       Be Responsive and Efficient

When making decisions on what needs to target, your not for profit should seek direct input from your community. Rather than telling individuals what they need, directly ask them how your group can best help them, and focus your efforts and resources where they are requested to be.  Always be open to modifying your approach based on changes in local conditions and develop practices that constantly seek better ways of doing things more efficiently.  When you meet actual needs and efficiently use your resources to do so, you will inspire others to contribute their time, talents and money to your group.

By following these 3 steps to improve your not for profit’s governance, you can ensure that it takes the necessary steps to meet all of its obligations and responsibilities. By building trust and respect in the community for your not for profit, you ensure its long term survival so that it can continue to best serve the community’s true needs.