Good Governance Principles and Guidance for NFP Organisations


Review of not for profit good governance principles

The Australian Institute of Company Directors (AICD) is seeking feedback on the review of the 'Good governance principles and guidance for not-for-profit organisations' (Principles), originally releas...

Good Governance Principles and Guidance for NFP Organisations

As part of our commitment to the Not-for-Profit (NFP) sector and its directors we have developed the Good Governance Principles and Guidance for Not-for-Profit Organisations (the Principles and Guidan...


Not-for-profit organisations (NFPs) play a vital role in society, in many cases directly impacting on the quality of people’s lives.

Principle 1: Roles and Responsibilities

There should be clarity regarding individual director responsibilities, organisational expectations of directors and the role of the board.

Principle 2: Board Composition

A board needs to have the right group of people having particular regard to each individual's background, skills and experience, and how the addition of an individual builds the collective capability ...

Principle 3: Purpose and Strategy

The board plays an important role in setting the vision, purpose and strategies of the organisation, helping the organisation understand these and adapting the direction or plans as appropriate. 

Principle 4: Risk - Recognition and Management

By putting in place an appropriate system of risk oversight and internal controls, boards can help increase the likelihood that their organisation will deliver on its purpose.

Principle 5: Organisational Performance

The degree to which an organisation is delivering on its purpose can be difficult to assess, but this can be aided by the board determining and assessing appropriate performance categories and indicat...

Principle 6: Board Effectiveness

A board's effectiveness may be greatly enhanced through: careful forward planning of board-related activities; board meetings being run in an efficient manner; regular assessments of board performance...

Principle 7: Integrity and Accountability

It is important that the board have in place a system whereby: there is a flow of information to the board that aids decision-making; there is transparency and accountability to external stakeholders;...

Principle 8: Organisation Building

The board has a role to play in enhancing the capacity and capabilities of the organisation they serve.
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