Articles

Developing Deeper and More Strategic Partnerships with Business: A Framework for Moving Forward

Corporations are now interested in social sector partnerships for much more strategic reasons than they have been in the past. How can NFP CEOs take advantage of this trend? For years NFPs have been partnering with corporations, tapping into resources via their philanthropic and social responsibility agendas. However, we are now seeing the emergence of strategic relationships driven by the pressure on companies to find new sources of shareholder value, and this presents game-changing opportunities for NFPs.

The Fundamentals of Good Governance, Post-Hayne

The recent Hayne Royal Commission highlighted some failures in governance in the banking and financial services industry and considered whether banks and financial services organisations had lived up to community expectations. Not-for-profit and for-purpose organisations have much to learn from the recent Royal Commission, as community expectations are crucial to their purpose and their viability. In essence, the Hayne Royal Commission advocates a focus on and a sharpening of good governance fundamentals: governing for purpose, role clarity, improved capability and the importance of culture.

Recruiting for Not-For-Profit Boards: Building Strong Foundations

With the landscape of not-for-profit governance constantly changing, it is crucial that boards recruit appropriately skilled and qualified directors who can help drive the organisation towards its mission and goals. Yet, boards continue to suffer from underperforming directors, ego-driven attitudes, and constant disagreements. While managing performance is an important part of maintaining a high-performing board, it is equally as important to have a clearly defined recruitment process for bringing in new directors.

The Elephant in the (Board)Room

In almost every survey of boards, directors reveal that they are unhappy with the performance of one or more of their boardroom colleagues. They usually then continue to reveal that their board has done nothing to remedy the poor performance. For example, the 2018 PwC Annual Corporate Directors Survey showed that 45% of directors believed that one or more of their board colleagues should have been replaced. The McKinsey Global Governance Survey2 showed that 67% of directors served on a board where one or more directors should have been removed.

The Role of the Critical Friend for Directors

I sit on probably as many boards as you do, and I work with about 20 boards each and every month doing our strategy and innovation work. So, after 25 years, I’ve seen a good few in action, warts and all. My life is probably like yours. Life outside the board meeting is busy enough. Like master logisticians, we have to sort out kids, partners and businesses in order just to get to our board meetings.

Changing ATO Guidance For Sporting Club Income Tax Exempt Status

Taxation Ruling Income tax: exempt sporting clubs (“TR97/22”) is the formal public ruling issued by the Australian Taxation Office (“ATO”) on 3 December 1997 and applies “to sporting organisations seeking to determine whether they are exempt from income tax”. TR97/22 states it “is to assist a club’s office holders to determine whether their club is exempt from income tax”. A club which has a main purpose of sport (or sports) will be exempt from income tax pursuant to section 50-45 Item 9.

An Effective Strategy Execution Framework

Realise your not-for-profit organisation’s vision in a simple yet effective way. Not-for-profit organisations generally have a strong sense of purpose. They passionately can put into words why they exist, what is important and what the future state of a better world will look like. However, many Not-for-profits struggle to articulate how they will achieve their vision. Development and execution of strategy is often seen as a complex, time-consuming and costly process, or there may be confusion regarding what strategy actually is.

A Positive Wind-Up For The Centre For Sustainability Leadership

After 13 years of training and support, the Centre of Sustainability Leadership (CSL) reached a natural end to its ground-breaking run. Under the guidance of the board, CSL is handing over its intellectual property, brand and the 1000+ alumni to the Monash Sustainable Development Institute (MSDI). ‘Sustainability’ was a word that offered optimism and opportunity when co-founders Larissa Brown and Jason Clarke kicked off CSL back in 2004. Larissa was the visionary who seeded the leadership training idea through the Greensteps Program for Monash Sustainable Development Program.

Get Real: What Are The Questions Boards Need to be Asking During Mergers and Acquisitions?

So you’re on a not-for-profit board and the question of a merger or acquisition comes up. What’s your primary objective as a board member as you navigate these often complex discussions? Is it: To safeguard the organisation’s legacy? To rigorously examine the potential business case and its financial viability? To thoroughly explore the risks and push for detailed due diligence on the potential partner? To dust off your AICD training (or get legal advice) on your fiduciary duties as a Director during a transaction?

The Collective Voice – A Crucial Leadership Element

Numerous professional development resources dispense advice with the presumption that directors will approach objectives with a shared attitude and intent, that the board will reach a consensual decision and speak with a collective voice. The reality is that often this is far from the case. Resolution can be difficult and that collective voice may be impossible to achieve. While healthy dissent can be a sign of an effective board, differences – habitually ill-managed – are obvious drivers that can lead to substantive leadership and organisational damage.