November

Wintalyka Issue 4 / 2012
Feature story
Training Snapshot - Responsibilities and
Obligations of being a Director of a Not for Profit
Organisation
By Christine Russell (adapted from It’s Your Business ADHC)
Being a Director on a Board or Management Committee is a legal responsibility that forms part
of the corporate governance of an organisation. Governance is an essential component of a
successful organisation.
When you are invited or elected to become a Director, Board or Management Committee member
this translates into providing leadership, undertaking risk management, monitoring and managing
as well as looking at the sustainability of the organisation.
There are legal responsibilities associated with being a Director, Board or Management Committee
member which are called fiduciary duties. These relate to the duty to act honestly and competently
and in the best interests of the organisation as well as to avoid and declare any conflicts of interest.
The role of the Board is to know the business of the organisation and to set the directions for the
future, to have a risk management plan, to establish reporting procedures and to develop long term
financial and succession plans.
For a Board to be effective it needs to suit the organisation in terms of skill set and to have a good
relationship with staff and conduct effective meetings.
A “skills based” Board should be reviewed on a regular basis so that the needs of the organisation
are met and so that a suitable criteria is established for the recruitment of Board members.
Office bearers are members that have specific responsibilities such as the Chairperson, Treasurer
and Secretary.
All Board members should receive induction and training.
A Board should also undertake a collective regular assessment of its performance as well as that
of individual Board members.
The Board also conducts performance reviews for the senior manager of an organisation.
Boards should monitor whether they are having productive meetings. The role and function of the
Chairperson is to facilitate an effective meeting by encouraging all members to participate and to
address all relevant issues.
A Board provides the ethical framework for an organisation. The standards and practices of a
Board filter from the top through to all persons in that organisation. Being a Board member is a
very prized and responsible position that influences the culture, achievements and dynamics of an
organisation through and through.
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