Governance issues
The 'governance' of an organisation generally refers to the processes by which an organisation is directed, controlled and held to account. It covers issues of authority, accountability, stewardship, leadership, direction and control exercised in the organisation.
Good governance practices are crucial to the organisation's ability to function, to achieve its objects and to comply with all of the legal, ethical and operational requirements of a community organisation. A major issue that community organisations often face is working out:
- the role and responsibility of an organisation's board or committee (to govern the organisation); and
- the role and responsibility of the management or executive team (to manage the organisation).
This is a particularly difficult issue for small organisations that have no (or very few) paid staff. For these organisations, and even medium community organisations, the size of the organisation can make it challenging to be able to separate issues of strategic governance and day-to-day management.
For more information about community organisation boards and committees of management, see The people involved > Office holders in a community organisation.
For details on the governance positions within an incorporated association and information on the different committee roles, please see our page Positions in an incorporated association.
For details on the governance positions within a company limited by guarantee and information on the different committee roles, please see our page Positions in a company limited guarantee.
There has been much written about principles of good governance for community organisations. The below links highlight the existing resources which focus on the important issue of governance in a community organisation. Please follow these links if you would like further information on this topic.
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The Centre for Philanthropy and Nonprofit Studies at the Queensland University of Technology (QUT) has a wiki on board and committee issues. The wiki provides a range of resources on governance-related topics.
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These CSA resources for not-for-profit community organisations look at the relationship between a board (or committee of management) and management in not-for-profit organisations.
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The Boards section of the Our Community website includes information on governance issues in not-for-profit community organisations.
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This is a link to a toolkit which provides guidance and information about governance.
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Thisis a link to information about good governance.
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The Department of Planning and Community Development have produced this resource which is intended to be particularly useful for those who have not governed such facilities in the past. It covers facility vision and type; size and catchment; governing bodies; facility maintenance; and operations and integration.
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This is a link to the 2010 update of the guide to good coporate governance provided by the Australian Securities Exchange (ASX). This publication is aimed at for-profit companies (and uses language like 'shareholders' not members) but the key principles of good governance are useful for not-for-profit organisations.
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This page contains a link to VCOSS's Board Governance Policy. This policy uses as a base the UK Good Governance Code for the Voluntary and Community Sector (2nd ed, 2010), and adapts it for Australia and VCOSS’s own circumstances. It provides a useful general model, although it needs to be adapted for each organisations individual circumstances.