The recent liquidation of a large college in Victoria which displaced over 1200 students, is a reminder to directors of not for profit (NFP) organisations of their duties. Even though directors in this sector are sometimes ‘well meaning amateurs,’ they play an important function and carry the burdens and responsibilities that accompany the office of a director.
In the current economic climate, NFPs face increasing demand for their services and a decreasing supply of funds from corporates and individual donors. They and their directors may face difficult times. In this context, the governance and accountability of the NFP board are significant issues that are worth revisiting.
Please read this excellent article from Cleardocs if you are on the board of a not-for-profit organisation to refresh your understanding of the responsibilities and risks of holding such a position