Pascoe hails AICD report

Commissioner of the Australian Charities and Not-for-profits Commission (ACNC) Susan Pascoe has hailed the AICD’s report as a substantial contribution to the NFP sector.

‘The (report) is an excellent addition to the body of research focussed on Australia’s not-for-profit sector,’ Ms Pascoe said.

‘Our experience at the ACNC demonstrates the relationship between good governance and the health of charities, and conversely, the link between dysfunction, mischief and failure of charities and the neglect of governance. It is heartening to see the perception of much better quality of governance by NFP directors in this report.

‘One of the figures that caught my attention was that 90 per cent of directors have undertaken formal or self-directed learning in the past year. This is very impressive and is a sign of the sector’s commitment to capacity building’.

She added that the report also disproved the perception that the governance of NFPs was typically inferior to that of profit-making companies.

The report says: ‘It was once commonly held that the governance of NFPs was generally poor compared with the for-profit sector, but side by side testing has repeatedly shown that this is not the case. In fact, some see NFP governance as more complex due to the need to achieve both mission success and financial strength, and the complex environments in which NFPs often operate.’

Commissioner Pascoe highlighted innovation as a key area of interest in the report.

‘The (report) contains very helpful advice for not-for-profit directors, funders and governments,” she said. ‘I encourage not-for-profit sector stakeholders to read it.’
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