Articles

All Your Eggs in the One Basket? The Importance of Diversifying Income for NFPs

Boards no doubt want to see their organisations deliver impact long into the future. And grow this impact, too. Unpredictable government funding and increasingly competitive philanthropy makes it hard to plan out future growth without the safety net of financial sustainability. Sustainability is not a year-to-year proposition, but by its very nature a long-term pursuit with short-term actions. It allows the capacity to plan ahead with predictability, and decrease dependencies on revenue streams that are out of your control.

Leadership Succession Management as an Ongoing Governance Discipline

A board’s primary responsibility for the succession of the senior leadership of an organisation is increasingly acknowledged in light of clear evidence that inevitable changes in these positions often cause preventable disruptions to corporate performance. Australia, which previously has been lagging its counterparts in the US and the UK, has recently tightened its governance guidelines to make boards more accountable for directly overseeing the succession of all key management positions. As this translates into one of the most ‘hands on’ roles of a board, how can directors ensure that an effective approach is being implemented?

How Well Is Your Board Managing its Scarcest Resource?

As a board, the time spent together in meetings is scarce and managing it well is important for your productivity, director engagement and governance effectiveness. You only have a few hours together a month and it is important to use that time well. Even if your meetings run smoothly, attention to how you use time can help your board be more productive and effective. Time is the scarcest resource; if it is not managed, nothing else can be

Scaling Impact Through Cross-Sector Partnerships: A Spotlight on Shared Value

Innovation and change is not the responsibility of one sector alone. Nor can the elements of innovation and change (funds, resources, motivation, creativity, scale) be neatly carved off to individual sectors in the hope they each play their role. By bridging sector boundaries, the osmosis of ideas and practices naturally gives rise to new models where individuals and communities can thrive without overtaxing social sector resources or extinguishing private sector profit.

The Importance of Being Heard

Listening to consumers, their families and carers, is critical to succeeding in an increasingly competitive climate. For example, the commencement of the National Disability Insurance Scheme (NDIS) and emergence of disruptive technologies, introduces informed choice. As purchasing power shifts to individual consumers, they will become more critical in their choice of service. To meet their due diligence responsibilities, directors must have an effective oversight of the processes in place for engaging with consumers and effectively monitoring and managing the quality and safety of services.

Board Fundraising Check-Up

Not-for-profit boards are under increasing pressure from the press and regulators to ensure the propriety of their fundraising practices. The Shane Warne and E.J. Whitton Foundations are simply two of the latest examples where boards are asked to explain their approach to raising and distributing funding. If you have been thinking about reviewing your own fundraising practices, we have put together a series of eight points to guide your review.

Disrupt or Be Disrupted ... The Six Leadership Challenges of the New Customer-Driven Competitive Marketplace

The strategic and organisational impacts and implications of the new customer-driven, competitive marketplace of human services are profound. Never before and probably never again will the boards, chief executive officers and senior managers of Australian community businesses (NFPs) face such a cataclysmic shift in the way they need to think, behave and operate. The shift from a government-funded, welfare paradigm to a customer-driven, competitive market paradigm should not be underestimated – there are immense strategic and organisational challenges as well as significant opportunities.

What Does an Innovative Board Look Like – Value Creating

In an increasingly complex and uncertain world, change is happening faster and more often than ever before. As an example of major change in the Australian not-for-profit sector, the National Disability Insurance Scheme (NDIS) has transformed the way people with disabilities are supported, with the move away from the block funding of disability services by government towards a system in which individuals with a disability have a greater choice and control over the services they purchase.

Three Cheers for the Chair

Every board member has an important role to play in the governance of your organisation, but it is your board Chair who has the greatest influence over the culture and focus of your board activities. As such it is crucial that boards carefully consider their Chair’s appointment and make sure they choose the right person for the job. When discussing the role of Chair for your organisation, there are several things you may want to consider.

Keeping Your Reputation – Integrity Risks for NFPs

Recent cases questioning the integrity of some Not-for-Profit (NFPs) organisations highlight changing accountability requirements for the sector. As more public funds are provided to the NFP sector to deliver public services a higher level of public accountability is being applied to the sector. NFPs able to negotiate this transition will distinguish themselves in the market. For some, the recent Anzac commemorations were tainted by the Department of Veteran Affairs stripping the Camp Gallipoli Foundation of its permit to use the protected word “Anzac”.