Director complaints account for 52% of ACNC's investigation

3 April 2018 11:57
AICD Company Director Course Students 13th January 2017
The ACNC (Australian Charities and Not-for-profit Commission) has just released their annual Charity Compliance report with some eye opening statistics for directors.

The report states that 52% of all complaints to the ACNC that were investigated related to directors' duties.

The Australian Institute of Company Directors (AICD)'s article lays out some of the most relevant information for business leaders.

So what should you do if you sit on the board of a not-for-profit (or, as we refer to them, "for-purpose") organisation?

It feels like a privilege to be asked to be a director of a not-for profit. But, as with any privilege, comes responsibility. 

First off, before enthusiastically accepting, you need to do your due diligence. There is lots of publicly available information these days just at your finger tips. 

The first port of call would be the ACNC website. You can search their database for the organisation's financial accounts, the list of other directors, the AIS (Annual Information Statement) and much more. The information on here will be a good indication of how seriously they take their compliance.

After thanking the person who has offered you the position, then you should ask for time to think before accepting. Also ask for copies of minutes from board and committee meetings and a copy of the current financials. 

Doing your due diligence at this stage will save a lot of surprises down the path. You should also check about Director and Officers Insurance and, if your organisation does not cover this for you, then it would be worth inquiring for your self.

There are many different avenues to find out what else you need to look out for. Here's a good article on the AICD website as a possible starting point. 

The main advice is to do your homework and go in with you eyes wide open. It is a privilege to serve on a for-purpose board but it is also a responsibility.


  

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