governanceThe previous posts have discussed some of the issues and methods when your organisation does not have any staff yet need to manage governance and operational functions.

While combining the two functions is not ideal and it can be argued that it goes against the whole principal of keeping them separate, the reality is that a lot of small not for profit organisations such as community groups, sporting clubs as well as many other types of groups who do not have any staff could not operate or exist without combining the two functions.

Therefore, as a summary of the previous posts, under these circumstances having the one board manage the governance and operational functions can be achieved as long as the following occurs:

  • Ensure the internal controls, policies and procedures are properly managed to ensure full accountability and transparency.
  • For any operational functions create a position description statement or terms of references for each role that clearly outlines the key tasks, levels of responsibility and accountability.
  • Each function should be allocated to one person who manages and oversees that role.
  • As discussed in Part 3, ensure there is a clear method used by the board to manage, report and monitor the governance and operational functions.
  • At each board meeting that covers governance issues there must be a report by each person responsible for the operational function that addresses key issues that have occurred since the last meeting.  This report should be discussed, reviewed as well as ensured there is compliance with the terms of reference and policies before it is approved by the board.    

Importantly, on a regular basis the board should review how effective the management of the governance and operational functions are being managed and identify way to make improvements and changes as needed.

The main purpose of these series of posts was to recognise and discuss the fact that a lot of small not for profit organisations that don’t have any staff still need to provide effective governance while operating the organisation.  The issues raised and discussed highlights some of the methods that may be implemented, and while they may differ for many organisations, the main point being made is that with a bit of planning and effective management a board can properly manage the governance and operational elements and still ensure full accountability and transparency is achieved.