Here’s two important facts about non-profits:
- They make the world go round.
- They don’t have the resources for expert governance.
In the regions, but also in the capitals, non-profits or NFPs are supporting kids, young people, parents, those living with disability, elders, veterans, women, men, and basically all of us. They supply education, safe spaces, housing, advocacy, social connection, advice, emergency response, wildlife rescue, and every kind of helping hand.
Without them, our communities would cease to function.
And their boards, committees and governing bodies are rich in wonderful, committed human beings who know the joy of lending a hand – but have little or no training in the duties and potential liabilities of the roles they’ve taken on.
It’s a collision of two worlds. Your duties as a director (whatever that job is called) are not lightened because of the not-for-profit clause in your constitution. You are not exempt from escalating complexity and creeping over-regulation.
I’ve seen NFPs that did wonderful work, shipwrecked on poor governance oversight and superficial risk management.
You need to attract, train and retain the best volunteers for your excellent cause. And you need to take the same approach with your office-bearers.
We at Upland have a half-day, in-boardroom introduction to governance basics for non-profits. It can be the first step of what should become a continuing journey. We’ll tailor it to your current needs, and our guiding principle is always fit-for-purpose. Call me, let’s see if this can help you.
As you move along the road, the gold standard is the AICD Company Directors’ Course. It’s expensive, like gold. There are moves afoot to bring it to the South West next year. If you’re looking to support your favourite local non-profit, perhaps the gift of most lasting value would be to sponsor one or more of their directors onto the course.
Footnote: non-profits is not a good label. They can and should make a profit (surplus). For-purpose doesn’t quite resonate, and anyway profit and purpose are not incompatible. So I’m open to suggestions.