It's vital for community-based services to understand the role of governance boards, the distinction between governance and management, and tools for effective leadership.
The governance group of a not-for-profit organisation is normally called the “Committee” or the “Executive” . It is generally required to follow the requirements of the “Constitution” or “Trust Deed”. It is also responsible for meeting any statutory or legislative requirements that apply to the organisation.
The relationship between governance of a centre and its management needs to be collaborative and stay as distinct roles to ensure an organisation's operational efficiency.
The key role of the governing group is to:
- set and monitor the direction of a centre;
- ensure it remains financially sound;
- ensuring legal compliance.
Good governance depends on developing good working relationships with those who do the day-to-day work of the centre. It also depends on having good systems and policies in place to ensure consistent governance that is transparent and correctly interprets and applies its constitution or trust deed.