People come and people go and the board of an NFP is no different. Turnover and changes in members and volunteers occur. Whether the chance is fortunate or unfortunate, it is something you need to be prepared for.

Changing your director isn’t as simple as “out with the old and in with the new”, however, and there are some requirements that need to be adhered to. These are for legal reasons as much as administration and the morale of others involved in your organisation.

First and foremost, check that the proposed replacement is eligible for the position. Obviously you need to ensure they are capable of fulfilling the responsibilities of the role. There are also restrictions on who can and cannot be a director of a not for profit.

The ASIC website has some useful information about your organisation and the law, including the roles and responsibilities of the director, and any restrictions on who is eligible for the role. These include, for example, anyone insolvent, declared bankrupt or with a criminal conviction.

There’s some paperwork and administration that needs to be seen to, too. The ATO provide a handover checklist for any changes to the board, which covers the documentation and paperwork that needs completing, as well as other requirements to ensure the changeover and the organisation remain legal and operational.

The Corporations Act 2001 requires that the details of the director, and rest of the board, are kept up to date at all times. It is up to you to ensure that these details are correct, so make sure you notify all agencies you are registered with of the change.

Aside from the legal and other requirements, you also need to consider the operation of the organisation, as well as conduct some change management with the board and any volunteers or staff. Listen to concerns and address them where you can, and try to make the change as smooth for everyone as possible.

Ensure you have good working and well documented procedures for all roles and activities within the organisation. Well organised systems and manuals are also beneficial. This will make a smooth transition for the new director, as well as long-term members, from board members to volunteers, of your NFP.

Keep documents and records of everything, such as a contacts list, a register of all relevant websites and other organisations you have subscribed to. Administration, data entry and filing are not only beneficial for the running of the organisation, they also reduce complications when a change of director occurs.

You may even like to create your own checklists, based on the requirements of ASIC, the ATO and other, relevant organisations for charities and Not for Profits.

Ultimately, though, ensuring the person filling the role is suitable, not only from a legal perspective for your organisation, but that they also have the relevant qualifications, experience and drive your organisation needs.