The Australian Institute of Company Directors (AICD) released the Not-for-profit Principles - Second Edition in January 2019 as part of their commitment to the not-for-profit sector and their respective Board of Directors. The revised edition takes into account changes in the sector including increased expectations of good NFP governance.
Why did AICD update their Not-for-profit Governance Principles from the ones that were released in 2013?
The updated Principles reflects the fact that in the last six years, the not-for-profit sector has gone through significant changes. The sector is also under greater scrutiny, especially following governance misconduct as revealed through recent royal commissions including into aged care. The expectations from the community for organisations to be governed appropriately has certainly increased of late.
Why should NFPs refer to the AICD NFP Governance Principles?
While the Principles are not mandatory, they provide a good framework that is highly relevant in today’s climate in reviewing whether the governance of your organisation is where it needs to be. Further, the guidance comes with supporting practices and case studies to assist organisations in identifying whether they have the appropriate level of governance within their organisation.
Where should NFPs go if they need more information?
To download the full set of Principles, please click here.
If you have any further questions as you work through the Principles, please contact your local RSM Australia office.