What is governance and why is it so important?

Governance is a challenge for many non-profit organisations (NPOs) where your main aim is public service, not financial gain. It is often difficult to find board members with the necessary skills who will volunteer their time. Ensuring that enough board members regularly attend meetings can 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.