Home > News Release: Not For Profit Boards Fail To Plan For The Fu
Not for Profit Boards Fail to Plan for the Future
10 December 2008
90% of Not for Profit Boards do not have a budget for professional development of individual Directors. That's according to a recent Enterprise Care survey of over 300 Not for Profit organisations.
The survey reveals that while a small number of Boards (46%) undergo training and professional development as a whole, individual directors are sorely neglecting their governance responsibilities.
Enterprise Care Managing Director Damien Smith says that this serious issue needs immediate attention.
`Good governance cannot happen without skilled and educated Chairpersons, Directors and CEOs. It is extremely important that Board members understand their duties, responsibilities and legal requirements, and that they regularly undergo professional development to keep up with their increasingly significant responsibilities`.
`You would not ignore training and development in your day job, and I believe that the role of Director, which is a profession in its own right, should be taken just as seriously` he said.
According to Mr. Smith, in this time of financial uncertainty it is especially important for organisations to be socially, environmentally and ethically responsible. Organisations that aren't, run the risk of missing out on valuable funding.
`Sponsors, grant givers, philanthropists and investors are more inclined to closely examine an investment of money in financial downturns than in times of booming economic growth` he said.
`All organisations must ensure that they adhere to the highest professional standards and comply with all legal and financial obligations. Processes and procedures need to be open, honest and transparent` Mr. Smith said.
Enterprise Care recommends a number of areas of professional development which a Director should undertake whilst sitting on a Board, including: induction on organisational policies and procedures; risk management; complaints handling; contracts policy and procedures; succession planning; strategic planning; finance; and codes of conduct.
Mr. Smith believes that good governance can only occur when the leaders of an organisation have the skills, experience and tools to make informed decisions.
`Running a governance consultancy group, I quite often come across Boards whose Directors have little or no experience. This is especially prevalent in the Not for Profit sector, where Directors are mostly volunteers and may have never been involved in the governance process before`.
`It should be the highest priority of these Boards to budget for, and implement, on-going professional development for their Directors. This will ensure that their organisation will grow and develop in the future` he said.
For more information, or to arrange an interview with Damien Smith, call:
Alicia Semple
Communications Manager
1300 659 613
or
Damien Smith
Managing Director
0418 325 781.
Enterprise Care is the premier Not for Profit sector consulting group for governance in Australia. In business for over 20 years, Enterprise Care offers innovative products and services for the corporate and Not for Profit sector.
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