Governance

Governance is about how an organisation is led and guided by its governing body. It is also about the ethical considerations that inform the decision-making within an organisation. It involves an acknowledgement of the technical aspects of governance, e.g. registration and legislation, and the commitment to transparency and accountability. The board’s governing role includes oversight of the organisation; giving strategic direction; and ensuring sufficient resources. The board accepts fiduciary responsibility and exercises oversight on financial, legal, ethical and performance matters. Effective governance necessitates a good relationship with the organisation’s director or CEO. This category features articles on various issues of technical governance in South Africa such as legal entities and registration; effective governance including recruitment, roles and responsibilities of a board; and tips on improving relationships between your governing body and executive leadership.

Having a Code of Governance

Why are we talking about governance? Given the funding issues non-profit organisations in South Africa are struggling with, surely governance is the last of a number of many important topics we should be looking at?

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What is governance and why is it so important?

The board governs your organisation by giving direction on things like vision, policies and strategies; fundraising and other resources to keep the organisation going; and monitoring performance and spending of money.

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The role of the board in managing risk

The environment within which the non-profit sector operates is constantly changing. There are always new developments and trends to monitor in terms of impact and effect on non-profit organisations. It is important for every organisation to be aware of the environment in which it is operating, as changes bring with them not only new opportunities but also new risks.

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