NFP Governance and Performance Study

The Australian Institute of Company Directors recently launched 2014 NFP Governance and Performance Study. The study is Australia's largest and examines the governance of the Not for Profit sector and the contribution made by its directors.

The study examines the governance practices and opportunities of Not for Profit organisations and is the largest and most comprehensive of its kind in Australia.

Conducted on behalf of Australian Institute of Company Directors by research firm BaxterLawley and sponsored by the Commonwealth Bank of Australia, the 2014 study looks at the future needs of boards and specific issues such as collaboration and mergers, performance measurement, and the relationship between the board and the CEO.

This year the study also examines the issues and challenges faced by aged care organisations and independent secondary schools.

Highlights include:

• NFP governance continues to evolve – More than 80 per cent of directors believe governance of their organisation is better now than it was three years ago.
• NFPs are collaborating – A merger is on the agenda for 30 per cent of boards.
• Governance is changing – Over a third of boards are planning to change one or more of their governance documents in the next year.
• Boards want better performance indicators – In particular boards need information that measure mission effectiveness.
• Relationships between the board and CEO are strong – More than 60 per cent of directors believe the relationship between boards and CEOs are very good or excellent.
• School boards face increased challenges – Managing uncertainty in government funding, their reputation and performance are top priorities.
• Aged care boards need certainty – Directors have implored government to think long-term and finalise policy change.
• Uncertainty in government policy is an issue – Responding to change and uncertainty in government policy is a top priority for NFP boards.

Download a copy of the report here.