The Australian Institute of Company Directors has just released its second edition of its Not-for-Profit Governance Principles, HLB reports.
Murray Baird, Assistant Commissioner and General Counsel of the ACNC spoke on the Principles, and noted that the AICD Principles are different to the five governance standards of the ACNC, which apply to all charity NFPs.
Mr Baird noted that ACNC Governance Standards are a set of minimum standards that a charity must meet to maintain registration with the ACNC, whereas the AICD Principles identify the ingredients for good governance of all NFPs i.e.charities and other NFPs, and that not-for-profits that follow the 10 AICD Principles are likely to have a clear purpose, and the tools to achieve that purpose.
Angus Armour, Chief Executive Officer and Managing Director of the AICD, noted that the Principles had been developed after extensive consultation with the sector, which brought to light that those in the sector considered that any set of principles should reflect an understanding of, and accommodate, the diversity of the NFP sector, recognising the variations in the size, resources and maturity of the organisations in the sector.
Mr Amour noted that there had been extensive consultation with the AICD’s NFP Chairs Committee in the development of the Principles. The AICD recognises that NFP‘s play a critical role in the functioning of Australian society. Mr Amour also said that the guide “will enable boards to have conversations and decide what to do” to improve their governance.
He also noted that these Principles are not a set of rules, but a tremendous resource for NFPs.