In the context of the Aged Care Royal Commission, and reports highlighting governance
concerns within community and NFP organisations, the Principles (second edition) are a
practical framework to help NFPs – both big and small - understand and achieve good
governance. This revised edition reflects the changes in the sector since they were first
released in 2013, including the heightened expectations of good NFP governance.
The Principles consist of three components: 10 individual principles, accompanied by
supporting practices and guidance.
AICD Managing Director and CEO Angus Armour said good governance of NFP
organisations had never been more important.
“Australians expect NFPs to be governed to the highest of standards, and the way they are
run is increasingly being scrutinised.
“Over a history of more than 200 years, not-for-profits have been a powerful and positive
influence on the development of Australian society.
“It is vital that we support the sector with free resources such as these. We thank all
members and stakeholders who contributed to the development of these Principles,” he said.
vThe Principles are primarily for directors and executives but will be valuable to others
involved in the governance of NFPs, such as managers, staff and volunteers.
The Principles are complementary to the Australian Charities and Not-for-profits Commission
Governance Standards, and are intended to be voluntary in application.
The revised Principles provide a framework for NFPs and charities to consider good
governance practices, including the board’s roles and responsibilities, managing conflicts of
interest, organisational culture, stakeholder engagement and risk management. New
supporting practices provide greater clarity for NFP directors on what good governance
looks like, to help support and strengthen governance practice in the sector.
The AICD encourages users to conduct regular assessments of their performance and to
report the outcome of this assessment to members and stakeholders, preferably on an
annual basis. The AICD suggests users adopt an “if not, why not” approach to reporting.
This means that where an organisation is not meeting any part of the Principles, it outlines to
stakeholders why this is the case.
Media Contact: Matthew Pritchard 0412 937 390
The Australian Institute of Company Directors is committed to excellence in governance. We make a positive impact on society and the economy through governance education, director development and advocacy. Our membership of more than 43,000 includes directors and senior leaders from business, government and the not-for-profit sector.