Articles

What is a Company Limited by Guarantee?

When establishing your non-profit organisation, you have several legal structure options to choose from, including an incorporated or unincorporated association, a cooperative, a charitable trust, or a company limited by guarantee (CLG). As a founder, the choice you make will determine the types of activities you can legally carry out. An organisation’s legal structure will inform the way reports and registration requirements are determined and regulated by government bodies and must be made clear during the registration process.

Coaches in the Boardroom?

Leading a not-for-profit organisation can be a lonely pursuit but it need not be. Leadership experts say board chairs, non-executive directors and CEOs all need allies to help them monitor and navigate the shifting dynamics of a volunteer board. Increasingly, not-for-profit leaders are looking to organisational or executive coaches to be that thinking partner. And, with good reason. Organisational coaching is a practice that has been proven to increase effectiveness of decision-making, sharpen strategic focus, develop, and encourage constructive board leadership behaviours, and help navigate transitions.

In Service of Two Masters – Conflicts in the Context of Multiple Directorships

Director recruitment is an important task for both not-for-profit and for-profit organisations alike. It is an opportunity to enhance the skills, experience and diversity of the existing board and ensure the directors are best placed to serve the organisation into the future. But what happens when the preferred candidate already sits on multiple boards, including the board of a potential competitor? It is a well-known principle of corporate governance that a director owes certain duties to the organisation they serve.

How to Handle Conflicts of Interest at your Not-for-profit Organisation

A conflict of interest occurs when someone has the opportunity to use their authority to benefit themselves, instead of the party they’re supposed to be serving. In not-for-profits (NFPs), this can take the form of awarding lucrative supply contracts to family or friends, giving certain people exclusive benefits, or interfering with awards. NFPs have to consistently monitor for conflicts of interest, so that changes with the agenda and board members’ circumstances don’t create an issue no one catches.

Integrating ESG into Not-for-Profits: Managing Risks and Opportunities

Environmental, Social and Governance (ESG) strategies and practices have become important aspects for Not-For-Profits (NFPs). The three ESG pillars are not only essential in risk management but have also been seen as emerging considerations for growth and opportunities. The three pillars of ESG are: “E” - the Environmental aspects. This refers to the NFP’s environmental impact and environmental stewardship. “S” - the Social aspects. This refers to how the NFP manages relationships with, and creates value for, stakeholders - including the interaction with its employees, beneficiaries, and the community.

Climate Risk Governance – The Role of the Board

Organisations can no longer ignore the pressing need for a proper climate risk governance strategy. Corporate liability due to failure to discharge duty in direct relation to climate risk is now a reality. Boards and directors can — and should — systematically apply a climate risk governance strategy to ensure they have discharged due care and diligence to mitigate this risk. At one of our recent webinars on Climate Risk Governance, Charlotte Turner, Senior Associate at MinterEllison, presented the key ways in which not-for-profit (NFP) boards and directors should effectively govern climate risk.

The Rise of Technology During the Pandemic – A Double Edged Sword

The impacts of COVID-19 are continuing to be felt across all industries and the charity and not-for-profit (NFP) sector is no exception. Sudden lockdowns and disruptions to service delivery forced charities and NFPs to embrace technology as one of the only ways forward. Whilst technology can improve efficiency, foster collaboration, expand opportunities for growth and help organisations better deliver services, it is a double-edged sword. Cybersecurity incidents have soared during the pandemic with charities and NFPs being a prime target.

Clear and Effective Board Papers in Six Steps

In a recent webinar on writing effective board papers, Josh Dowse from Clarity Thought Partners and Head of ESG and Sustainability at SenateSHJ, outlined the six fundamental stages of creating and delivering effective board papers. Here are some key discussions from this webinar to assist you with the preparation of your board papers. Writing effective (and welcome) board papers is a challenge. Breaking it down into these six steps is the key to clarity and getting the result you want.

Improving Governance and Transparency

Good governance is vital for transparency and ongoing public support for the charity and Not-for-profit sector. It is important that boards are aware of recent regulatory changes and ACNC innovations that will bolster governance and transparency. Our latest official data shows Australians donated $12.7 billion to charities in the 2020 reporting period, up from $11.8 billion in the previous period. Transparency and accountability underpin that strong level of trust and confidence.

The Challenge of being the Treasurer

Glenn Poole: Well, good afternoon. Thank you for coming back so promptly for this final session this afternoon. My name’s Glenn Poole and I’m an Executive in Residence at the Australian Centre of Philanthropy and Nonprofit Studies at QUT’s Business School. With a long career in the state treasury and seven years as a state auditor general, I’ve little difficulty in acknowledging the power and influence of money within society.