Why a Code of Governance for Non-Profits?
Why a Code of Governance for Non-Profits?
The objectives of developing an independent, voluntary Code of Governance for non-profits in South Africa include the following:
- Define
- To define the non-profit organisation (NPO) sector for purposes of this Code as comprising organisations of a voluntary nature, formed on a non-profit basis, at the initiative of individuals within civil society, in order to address a need or advance a purpose in the public interest.
- Recognise
- To recognise that the NPO sector is an important and distinct part of civil society, for which a distinct Code of Governance is needed.
- Diversity
- To recognise the wide diversity of size, capacity, and resources amongst NPOs.
- Success
- To acknowledge that success for NPOs is measured not merely by reference to size, capacity, and resources, but by commitment and effectiveness in achieving their goals.
- Promote
- To promote good governance, high standards, integrity, and best practice amongst NPOs.
- Standards
- To avoid the imposition of inappropriate, unattainable, and unaffordable standards.
- Consult
- To ensure that the Code is informed and developed through a process of sector-wide consultation and with the collaboration of all stakeholders.
- Principles
- To identify the core values and principles that should be implemented and practised by the nonprofit sector as a whole, in all its diversity.
- Interests
- To recognise that the best interests of beneficiaries, and of society as a whole, must be the overriding consideration in carrying out the work of NPOs.
- Values
- To recognise that NPOs are values-based institutions, which stand in a position of trust towards their various constituencies – including beneficiaries, donors, and society as a whole – and to which constituencies NPOs have a continuing duty of accountability.
- Affirm
- To affirm to the principle that the work and resources of an NPO must be dedicated exclusively to the advancement and support of a public benefit purpose.
- Acknowledge
- To acknowledge the existence and importance of other Codes, including the Department of Social Development NPO Code, the King III Code, and the South African NGO Coalition Code, insofar as they may be relevant to particular organisations.
