Good Governance Principles
September 18, 2014
All organisations require good governance to prevent dissolution. Charities and not-for-profits, with their tight budgets and limited resources, are especially in need of judicious governance that prioritises the needs of the organisation.
Sensing this need for guidance, the Developing Governance Group in Northern Ireland developed a code consisting of seven key principles of good governance for the voluntary and community sector.
Adhering to these seven principles can help your organisation flourish under stable, effective governance:
- Leadership – Every organisation needs good leadership. Make sure yours is led by a committee which guarantees the delivery of its objectives, charts its strategic course, and reflect its values.
- Responsibilities and obligations – The members of your management committee are legally responsible for their decisions and should be collectively accountable for the welfare of your organisation.
- Effectiveness – By assuming responsibilities, your management committee should organise itself to effectively fulfil its obligations.
- Performing, reviewing and renewing – Periodically reviewing the organisation’s effectiveness is critical to ensure legal compliance and long-term survival.
- Delegation – An organisation will quickly crumble without clearly delineated responsibilities. Your management board needs to assign responsibilities to anyone performing duties for your organisation and monitor their performance.
- Integrity – When running a charity, integrity is key to achieving its mission. All management decisions should be made with integrity and in the best interests of the organisation.
- Openness – Transparency is necessary to show nothing is being mismanaged.