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Not-for-profits of all kinds and sizes are involved in almost every aspect of Australian life, from local sporting clubs to large healthcare providers. While there is no doubt that the Australian NFP sector is enormous and economically significant, the sector is not without its challenges.
The findings of last year’s Royal Commission into Institutional Response to Sexual Abuse, the emerging concerns being raised from the current Royal Commission into Aged Care and some recent high profile cases questioning the integrity of some NFPs, highlight the changing accountability requirements for this sector. The NFP sector is experiencing a period of unprecedented change. In the context of an evolving regulatory landscape, new funding models and an increasingly complex operational environment, good governance has never been more important for NFPs. Though NFP boards have performed well in the face of complex challenges in the past, more of the same in governance approaches may not be sufficient to address declining trust and increasing community expectations.
As more public funds are provided to the NFP sector to deliver public services, a higher level of accountability is being applied to the sector and this has been welcomed by the majority of the sector. YellowBridge certainly welcomes a strong focus on good governance and accountability. This is reflected in our Values, guided by a skill-based Board of Directors and implemented in all our daily operations as we assist our clients to live proud and rewarding lives.
The once, commonly held view that governance of NFPs was generally poor compared with the for-profit sector, is not the case today. In fact, over the last eight years, the Australian Institute of Company Directors NFP Governance and Performance Study has challenged perceptions about the standard of governance across the sector. The research has shown that despite the challenges involved in NFP governance, NFP boards have performed with distinction, belying any belief that governance is lagging the for-profit sector.
It is heartening to note that the governance of most of our valuable NFPs is considered modern and sophisticated; and there is an embedded culture to continue to share our best practices with each other. However, we are always mindful that we cannot rest on our laurels.
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