What is Governance?
What is Governance?
Governance is about how your organisation is led by your governing body such as a Board of Trustees, including their oversight of your organisation – monitoring the activities of the organisation and how it spends its money.
Governance is often a challenge for many non-profit organisations (NPOs) as their main objective is public service, not financial gain. It is sometimes difficult to find board members with the necessary skills who are prepared to volunteer their time for free. Ensuring that enough board members regularly attend meetings can also be a problem, as volunteer board members often put other interests first.
A Chief Executive Officer (CEO) or Director is usually accountable for your organisation’s performance. Sometimes they are also involved with the day-to-day running and managing of the organisation. However, the overall vision and leadership should come from your board.
Your board is like a ship’s captain responsible for steering your organisation through stormy or calm waters, and keeping an eye on your NPO’s future survival and improvement.
Key areas of governance
The board governs your organisation by giving direction on things like:
- Vision, policies and strategies;
- Fundraising and other resources to keep the organisation going;
- Monitoring performance and spending of money.
