How to make your not-for-profit board more effective
Governance handbook for not-for-profit organizations
Good governance systems focus organizations on activities that best contribute to their objectives — activities such as resource management and stakeholder optimization. For not-for-profit organizations (NPOs), governance is particularly important. Today, these entities are challenged to provide more services to more people — but with fewer resources.
To help NPOs deal with heightened expectations regarding governance, Deloitte has released an up-to-date version of its booklet: The Effective Not-for-Profit Board: Governance of Not-for-Profit Organizations. This update responds specifically to the effect of new legislation passed by various Canadian securities exchanges on NPO governance.
Since the booklet's first publication in 1995, it has become a well-known resource for the Canadian NPO industry, with hundreds of copies distributed to large and small organizations in every province.
The booklet also emphasizes the importance of an effective audit committee in achieving good governance. Through its activities, an audit committee can give a not-for-profit organization's members, donors and other stakeholders a greater assurance of the integrity of financial information, clarity in reporting, and transparency in disclosure. To provide practical assistance for NPOs in meeting governance requirements, the booklet provides a sample mandate for a not-for-profit board and not-for-profit audit committee.
The handbook outlines key issues for the boards of not-for-profit organizations to consider, including:
Is the NPO able to effectively fulfill its role, given its resources of funds, staff and volunteers?
Does the board understand the key elements essential to the NPO’s success?
Do board members have the appropriate knowledge, skills, experience and objectivity?
Does the organization have a mechanism to obtain input from stakeholders?
Is it possible to assess the performance of board members who serve as volunteers and are not remunerated for their board service?
What is the board’s role and responsibility for setting the organization’s values and its philosophies?
To request a copy, contact us at Public Sector.