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Non-profit and social impact organisations need strong, active and committed governing bodies!!!!

TSI believes more than ever before that the leadership of nonprofit (npo) and social impact (si) organisations is core critical, more particularly as we emerge from the unprecedented challenges that have already been faced by them due to COVI 19, and as we emerge from this leading in the ‘new norm’.  They have a critical role to ensure financial sustainability and accountability to internal and external stakeholders.

In fact, it is a strongly held belief that governing body members of non-profit and social impact organisations should hold themselves to a higher standard.

It is admirable to accept a position on a governing body of a non-profit and social impact organisation. However, experience over the years has shown that it could be as high as 80% of these individuals may not have served on a governing body (Board) before…..

This is an onerous decision!!!!!

Before agreeing to serve on a governing body, do your homework. Be aware of what the expectations of you as a governing body member are.  Such an opportunity to serve is great, but be sure to gain a solid understanding of your role and responsibilities, fiduciary requirements and legislation etc.

Good governing bodies protect the organisation’s values and resources. There should be clear roles and responsibilities demarcation between CEO and board.

Roles of governing bodies and management

Governing BodyManagement
Determining policy and strategyImplementing policy and strategy
Appointing and overseeing the chief executive officerAppointing managers and staff
Monitoring the performance of the entire organisationMonitoring day to day activities
Managing the governance processDelivering services and conditions
Providing insight, wisdom and judgmentProgramming activities

The governing body is not there to run the NPO and to get involved in the day-to-day management of the organisation; that is a management function which needs to be performed by the management and staff.

A recent article on directors duties by Parmi Natesan, Executive: Centre for Corporate Governance at the Institute of Directors in Southern Africa (IoDSA)  – “says that in South Africa, directors’ duties as set out in our common law and in the Companies Act include the fiduciary duty to act in good faith and for a proper purpose in the best interests of the company and also acting with due care, skill and diligence. 

Apart from the law, the governance code in South Africa, King IV, sets out the expected governance best practice, and contains specific principles and practices around ethical conduct, good corporate citizenship, compliance with laws, rules, codes and standards, fraud, corruption as well as risk and tax governance”.

So, when deciding to accept an invitation to serve on a NPO’s governing body take the following into account…

Common law duties

In the discharge of their functions, the Governing Body members must satisfy common law and statutory requirements by always acting in good faith, with care, diligence, skill and within the laws of the country. Acting in good faith means that each Governing Body member must do what they believe to be in the best interests of the organization. Acting within the law implies that they must know the laws that govern their activities.

Fiduciary duties

The Governing Body must satisfy three principles that fall under fiduciary duties. Here the Governing Body and its members should avoid conflict of interest. A Governing Body member should not be involved in making a decision that he or she has vested interests in as this would bias his / her decision. A Governing Body member in an NPO should not profit from being a member of that organisation. He or she should not use the resources of the organisation as collateral for his or her personal gain.

Providing strategic direction

The Governing Body has the responsibility for the long term strategic direction of the organization, whereas the management team is responsible for operations. Although the responsibility for setting the direction remains with the Governing Body, in most organizations the process of establishing the vision, mission and strategy is a joint one involving the Governing Body and management. In some cases this process is driven by the CEO. The Governing Body is ultimately responsible for creating an environment which is conducive to good governance.

Formulating policies and providing direction

The Governing Body should be at the centre of determining the key challenges and opportunities that the organization should respond to. Governing Body members are expected to have the ability to read and respond to the environment. The other key role of the Governing Body is to develop the relevant policies that are needed in the organisation and to approve them.

Provide standards and control mechanisms

The Governing Body should ensure that a proper management structure, systems and procedures are in place and functioning properly. It should regularly review systems, processes and procedures to ensure the effectiveness of its internal system of control for accuracy and informed good decision-making. In addition, it ought to monitor and evaluate the programmes of the organization, as well as its financial sustainability.

Financial responsibilities

The Governing Body has the overall responsibility to ensure sustainability of the organization through successful resource mobilization and management strategies. The Governing Body’s financial responsibilities includes improving the financial reporting systems, accounting systems, and budgeting processes; ensuring that annual auditing takes place; appointment of auditors and designing their terms of reference and setting tender procedures.

Protecting the organization

Governing Body members have the responsibility to shield the organization from external threats to ensure that it continues to survive to serve its purpose. Protecting the organization also means meeting the requirements of its stakeholders such as the government, donors, members and the beneficiaries.

Some serious food for thought before serving on a NPO or SI governing body!!!

50% discount……. As part of our contribution to assisting NPO’s over this period we are offering a 50% discount on the programme which is normally charged at R1200 per person. You can register for only R600. Offer valid until 31st May 2020.

 

Face to face training is under pressure due to the COVID 19 (Coronavirus) pandemic. E-learning is the way to go!!!!!!!!!! Whilst you are in lock-down for the next 21 days, why not strengthen your governing body (NPO Board) leadership and governance knowledge? 

ourGOVERNANCE © is an e-learning programme for governing body members of Non-Profit and social impact organisations. The objective of the programme is to provide governing body members of these organisations with the understanding, guidelines and information they need to enable them to manage their organisation, its affairs and undertakings effectively and efficiently, comply with legal and legislative requirements, and to fulfil the obligations and expectations incumbent upon them as governing body members.

The e-learning programme is grouped under four modules covering fifteen sections in total.

Module 1 – Introduction to corporate governance and the nature of the Non-Profit Organisation

Module 2 – Duties and functions of a governing body.

Module 3 – Governing Body effectiveness.

Module 4 – Statutory requirements and code of conduct.

For more information click here: http://thirdsector.co.za/ourgovernance-e-learning-programme-course-overview/

When prompted during your registration process, input the following code- at the PayFast check out:

F667CA9B36.

Alternatively should you prefer to be invoiced, use the same code in the subject line and send an email to: admin@thirdsector.co.za

 Course completion flow chart.

Back to TSI

18th April 2020 – Workshop Introduction to Directorship & Corporate Governance in NPO’s – (Cape Town).

Governance is becoming one of the key issues that funders and donors are looking at whilst conducting their due diligence, especially before funding non-profit organisations.

This workshop is designed to allow staff, managers, executives and directors of NPO’s to gain an understanding of these issues and positively apply them in their organisations.

The workshop covers:

  • The Third Sector Landscape
  • The concept of governance
  • NPO organisational structures
  • Governing Body Members roles and responsibilities
  • Codes of Good practice
  • Board effectiveness
  • The five phases of growth of an organisation.

Date:         Saturday, 18th April 2020

Venue:     Toyota, Waterfront Terraces Block 1 (4th Floor)

                    Carl Cronje Drive, Tyger Waterfront, Bellville

Time:        Registration: from 08:30

Workshop: 09:00 – 12:30

Cost:          R850.00 per person. A 10% discount is offered for those organisations who wish to send two or more participants.  Use discount code MRB2OrMore. In addition: All attendees will also get a 50% discount on the ourGOVERNANCE © e-learning programme.

We look forward to welcoming you to the workshop. You can buy tickets here: https://qkt.io/drI67i

Faciltated by Malcolm Boyd who is the Founder and Managing Trustee of Third Sector Insights a Social Enterprise focused onto shining the light into the board rooms of nonprofit and social impact organisations. He is the Chairperson of World Vision South Africa, a global Christian relief, development and advocacy organisation dedicated to working with children, families and communities to overcome poverty and injustice. He is widely known by the South African SME support fraternity, especially for his role as founding Chief Executive Officer of NAMAC Trust. He is a founding member of the World Institute for Governance of Non-Profit Organisations (WIGNPO),

His exposure to both for profit and nonprofit organisations has allowed him to develop a greater understanding of the differences and similarities that exist between them and to apply this knowledge in these fields. He has a passion for excellence in the nonprofit sector with particular focus onto Corporate Governance, Leadership, Executive Management as well as measuring the impact of interventions in this sector.

He lectures at Stellenbosch University Business School and presents the governance module for the USB-ED NPO Management programme. He is also a panel member for the review of the project presentations by the Senior Management Development Programme (SMDP) students.

He holds a Bachelor of Business Administration Degree from Newport University (USA), and has completed postgraduate studies at Harvard Business School in the area of Governing for Nonprofit Excellence and Strategic Perspectives in Nonprofit Management; both were resident studies at Harvard’s Boston Campus. He completed the Management Advancement Programme at Wits Business School, Johannesburg South Africa. He is a graduate and Fellow of the Australian Institute of Company Directors and a Fellow of the Institute of Directors in Southern Africa. He holds a certificate from the University of Cape Town in Coaching to excellence. He qualified as a certified sustainability assurance practitioner at the University of Stellenbosch Graduate School.

Third Sector Insights NPT (www.thirdsector.co.za)

THIRD SECTOR INSIGHTS NPT

Tel: Cell: +27 72 630 5129                                                                                          

To register please email:

Yvette at admin@thirdsector.co.za or

Malcolm at malcolmb@thirdsector.co.za

Web: www.thirdsector.co.za

 

TSI and the Sustainability Development Goals (SDG’s).

 There are 17 Sustainable Development Goals which were adopted after a Resolution was passed by the General Assembly of the United Nations on 25 September 2015.

Third Sector Insights partners with and empowers Non-Profit and Social Impact Organisations who are contributing to address all the goals, however we have a particular focus on Goal 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.

We have a specific focus on the highlighted targets below.

  • Significantly reduce all forms of violence and related death rates everywhere.
  • End abuse, exploitation, trafficking and all forms of violence against and torture of children.
  • Promote the rule of law at the national and international levels and ensure equal access to justice for all.
  • By 2030, significantly reduce illicit financial and arms flows, strengthen the recovery and return of stolen assets and combat all forms of organised crime.
  • Substantially reduce corruption and bribery in all their forms.
  • Develop effective, accountable and transparent institutions at all levels.
  • Ensure responsive, inclusive, participatory and representative decision-making at all levels.
  • Broaden and strengthen the participation of developing countries in the institutions of global governance.
  • By 2030, provide legal identity for all, including birth registration.
  • Ensure public access to information and protect fundamental freedoms, in accordance with national legislation and international agreements.
  • Strengthen relevant national institutions, including through international cooperation, for building capacity at all levels, in particular in developing countries, to prevent violence and combat terrorism and crime.
  • Promote and enforce non-discriminatory laws and policies for sustainable development.

If you are a corporate, non-profit or social impact organisation, please contact us to explore how we can partner with you in strengthening your board leadership and applied governance on behalf of your stakeholders and beneficiaries you are privileged to serve for improved social impact. Looking forward to having a discussion with you.

Workshop on unpacking governance in non-profit organisations – 29th February 2020 – (Cape Town).

Governance is becoming one of the key issues that funders and donors are looking at whilst conducting their due diligence, especially before funding non-profit organisations.

This workshop is designed to allow staff, managers, executives and directors of NPO’s to gain an understanding of these issues and positively apply them in their organisations.

The workshop covers:

  • The Third Sector Landscape
  • The concept of governance
  • NPO organisational structures
  • Governing Body Members roles and responsibilities
  • Codes of Good practice
  • Board effectiveness
  • The five phases of growth of an organisation.

Date:         Saturday, 29th February 2020

Venue:     Toyota, Waterfront Terraces Block 1 (4th Floor)

                    Carl Cronje Drive, Tyger Waterfront, Bellville

Time:        Registration: from 08:30

Workshop: 09:00 – 12:15

Cost:          R950.00 per person. A 10% discount is offered for those organisations who wish to send three or more participants.

Faciltated by Malcolm Boyd who is the Founder and Managing Trustee of Third Sector Insights a Social Enterprise focused onto shining the light into the board rooms of nonprofit and social impact organisations. He is the Chairperson of World Vision South Africa, a global Christian relief, development and advocacy organisation dedicated to working with children, families and communities to overcome poverty and injustice. He is widely known by the South African SME support fraternity, especially for his role as founding Chief Executive Officer of NAMAC Trust. He is a founding member of the World Institute for Governance of Non-Profit Organisations (WIGNPO),

His exposure to both for profit and nonprofit organisations has allowed him to develop a greater understanding of the differences and similarities that exist between them and to apply this knowledge in these fields. He has a passion for excellence in the nonprofit sector with particular focus onto Corporate Governance, Leadership, Executive Management as well as measuring the impact of interventions in this sector.

He lectures at Stellenbosch University Business School and presents the governance module for the USB-ED NPO Management programme. He is also a panel member for the review of the project presentations by the Senior Management Development Programme (SMDP) students.

He holds a Bachelor of Business Administration Degree from Newport University (USA), and has completed postgraduate studies at Harvard Business School in the area of Governing for Nonprofit Excellence and Strategic Perspectives in Nonprofit Management; both were resident studies at Harvard’s Boston Campus. He completed the Management Advancement Programme at Wits Business School, Johannesburg South Africa. He is a graduate and Fellow of the Australian Institute of Company Directors and a Fellow of the Institute of Directors in Southern Africa. He holds a certificate from the University of Cape Town in Coaching to excellence. He qualified as a certified sustainability assurance practitioner at the University of Stellenbosch Graduate School.

Third Sector Insights NPT (www.thirdsector.co.za)

THIRD SECTOR INSIGHTS NPT

Tel: Cell: +27 72 630 5129                                                                                          

To register please email:

Yvette at admin@thirdsector.co.za or

Malcolm at malcolmb@thirdsector.co.za

Web: www.thirdsector.co.za

 

CONTACT US                                                                                                               In association with     

53 La Cotte  Street, Oak Glen, Bellville, Cape Town 7560

Suite 283, Private Bag X22, Tygervalley, Cape Town, 7536

Cell: +27 76 186  7940

E-Mail: malcolmb@thirdsector.co.za

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