Information on Governance for community organisations.
Governance is a broad term, often used to refer to systems which direct and control an organisation, and can encompass the relationships between management, the Board and other stakeholders.
For the purpose of this site, the term governance refers to an organisation’s Board, Council or Committee of Management. A director is a member of an organisation’s governance body and has responsibilities including oversight of the organisation’s strategic direction, finances and whether the organisation is achieving its goals and compliance obligations.
The key pillars or principles of good governance include:
- Purpose, vision, and strategy
- Roles and responsibilities
- Board composition and effectiveness
- Risk management
- Performance and accountability
- Stakeholders
- Sustainability
- Organisational culture
Good organisational governance provides organisational leadership, shapes the organisation’s mission, values and focuses on outcomes and sustainability and contributes to enhanced performance and stability within an organisation.
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Governance Standards, Requirements and Frameworks
Governance standards, requirements and frameworks specific to community services organisations.
Within the Social Services Standards, Standard 5 is Accountable organisational governance.
Standard 5 ensures:
- governance arrangements set clear directions for leadership
- systems are in place that identify, track and reduce risk, and improve service delivery
- providers have a transparent incident management system
- staff can confidentially raise concerns around safe service delivery without punishment.
The Australian Charities and Not-for-profits Commission has defined six Governance Standards.
These standards include Purposes and not-for profit nature, Accountability to members, Compliance with Australian laws, Suitability of Responsible people, Duties of Responsible People and Maintaining and enhancing public trust and confidence in the Australian not-for-profit sector.
Within the Child Safe Standards, Standard 2 is Child safety and well-being is embedded in organisational leadership, governance and culture.
Service Agreement and Service Agreement Requirements
Organisations funded to deliver community services are required to take steps to be satisfied that members of their governing body and those reporting to the governing body are suitable for the position they hold, in accordance with clauses 20.4 and 20.5 of the Service Agreement and the Service Agreement Requirements.
For more information see the Policies and Procedures page.
The Community Services Quality Governance Framework
The Community Services Quality Governance Framework sets the objective of safe, effective, connected and person-centred community services.
The framework outlines the principles, domains, roles and responsibilities of quality governance and includes measures of success, and indicators of poor-quality governance. It is designed for use across all services delivered and funded by the Victorian Department of Families, Fairness and Housing.
Effective quality governance is fundamental to consistently delivering safe, effective, connected and person-centred community services.
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Oversight
State bodies
The Social Services Regulator oversees social services to reduce or prevent harms to social service users.
Victorian Auditor-General’s Office (VAGO)
The role of VAGO is to provide assurance to Parliament and the Victorian community about how effectively public sector agencies are providing services and using public money through an annual program of financial and performance audits of state and local government public sector entities.
Consumer Affairs Victoria (CAV)
The role of CAV is as Victoria's consumer marketplace regulator. They administer over 30 legislative schemes in Victoria which includes regulating Incorporated Associations in Victoria. They undertake these regulatory functions and provide services to:
- support Victorians to exercise their consumer rights
- ensure that businesses and rental providers do the right thing.
The Victorian Ombudsman investigates complaints about actions and decisions made by Victorian public organizations, holding the Victorian public sector accountable to the people of Victoria.
Independent Broad-based Anti-corruption Commission (IBAC)
The Independent Broad-based Anti-corruption Commission (IBAC) is responsible for preventing and exposing public sector corruption and police misconduct in Victoria.
Office of the Victorian Information Commissioner (OVIC)
Regulates how departments and funded organisations handle information with a focus on Freedom of Information, privacy, data protection and information security.
Department of Treasury and Finance
Provides oversight of financial and performance outcomes for departments, including services and outcomes associated with funding to CSOs.
Provides oversight of workplace health and safety in Victorian workplaces.
Victorian Equal Opportunity and Human Rights Commission
Oversees compliance with Victoria’s laws on human rights and equal opportunities.
Health Complaints Commissioner
Oversees the health sector and quality of these services.
Commission for Children and Young People (CCYP)
Oversees services for children and young people, particularly out-of-home-care, child protection and youth justice systems and implementation of child safe practices.
Disability Services Commissioner
Oversees provision of services by disability service providers.
Commonwealth bodies
Australian Charities and Not-for-Profits Commission (ACNC)
Regulates charities and maintains a public register of charities, including charities who have been revoked.
Office of the Registrar of Indigenous Corporations
Holds regulatory powers under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth) to address issues within corporations.
Australia’s workplace relations tribunal.
Australian Securities and Investments Commission (ASIC)
Regulates entities incorporated under the Corporations Act 2001 (Cth), Some CSOs are registered with both ACNC and ASIC.
Australian Taxation Office (ATO)
Administers tax concessions for CSOs including charity tax concessions and tax exemptions.
NDIS Quality and Safeguards Commission
Regulates NDIS providers which include CSOs funded by the departments where these CSOs also provide NDIS funded disability services.
Australian Health Practitioner Regulation Agency (AHPRA)
Ensure that Australia’s registered health practitioners are suitably trained, qualified and safe to practise.
Aged Care Quality and Safety Commission
Oversees the aged care sector to ensure quality and safety.
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Organisations that can assist with governance or provide governance training
Australian Charities and Not-for-Profits Commission
The Commonwealth independent national regulator of charities.Australian Institute of Company Directors
Education; conducting professional development programs and events for boards and directors; producing publications on director and governance issues; and developing and promoting policies on issues of interest to directors.Consumer Affairs Victoria
Provides a range of resources and training programs to assist NFP incorporated associations meet their legislative and regulatory obligations under the Associations Incorporations Reform Act (2012).Governance Institute of Australia
Conducts accredited and internationally recognised education and training courses to skill board members to improve their organisation’s performance.Institute of Community Directors Australia
Governance network for directors serving on not-for-profit boards, committees and councils, and the senior staff who support them. Members get access to a range of educational, capacity building and networking opportunities.Justice Connect Not-for-profit Law
Training and resources to not-for-profit organisations.Leadership Victoria
Conducts board leadership training programs.Local governments
Some local governments conduct governance training to support and resource local clubs and groups to fulfill their statutory obligations and enable them to continue receiving local government resources for services and facilities.Neighbourhood Houses Victoria
Provides strategic leadership for Neighbourhood Houses in Victoria, supporting members with advocacy, research, and advice on relevant policy and legislative developments.Non Profit Training
Public and in-house tailored training services in governance, finance, funding and grant writing, leadership and marketing.Our Community
Provides accredited training, half-day workshops and conferences.VicHealth
Sometimes offers training designed to build skills of all stakeholders in the delivery of health initiatives and is open to board and committee members.Victorian Managed Insurance Authority
The insurer for all Victorian Government’s assets and provides coverage for NFPs that receive government funding. Training is provided to eligible organisations state-wide on best practice in risk management.Victorian Public Sector Commission
Has developed a range of governance publications targeting the public sector that are also of relevance to the NFPs.Women on Boards
Strives to improve the gender balance on Australian boards. Supporting, connecting and empowering women on their board and leadership journey. -
Learning and development resources
Community Services Governance Capability Framework
The 'Community Sector Governance Capability Framework' describes the broad capabilities required by people on boards or committees of management in community sector organisations.
It provides board or committee members with a common language for the knowledge and skills that are critical for the stewardship of an organisation. It also includes knowledge and skills required for particular roles on the board, such as that of board chair. It provides board or committee members with a common language for the knowledge and skills that are critical for the stewardship of an organisation. It also includes knowledge and skills required for particular roles on the board, such as that of board chair.
Case Studies on how to use the Governance Capability Framework
Organisations have implemented components of the Governance Capability Framework and agreed to share their experience in the case studies below.
These organisations were selected for their diversity to demonstrate the framework’s application to not-for-profit organisations, large and small, providing services to a cross section of Victorians. The report provides an overview of the key findings and a listing of organisations that provide governance resourcing, training and support to the not-for-profit sector.
Governance Capability Framework Facilitator's tools
The facilitators tools have been developed for use by a facilitator who could be:
- The board chair
- Another member of the board who has an interest in governance
- Someone brought in by the board to coordinate and assist a review of governance capabilities.
Related resources
- Governance Capability Framework tool kit (word)
- Case studies Governance Capability Framework not-for-profit organisations (word)
- Governance Capability Framework facilitators guide (word)
- Governance Capability Framework facilitators power point slides (pptx)
Other governance resources
A range of governance guides and tools suitable for community service organisations can be found below.
- Australian Charities and Not-for-profits Commission: Guidance and tools.
- Justice Connect: Free resources.
- Institute of Community Directors Australia: Tools and resources.
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Support for Aboriginal Community Controlled Organisations
Training
Office of the Registrar of Indigenous Cooperations (ORIC)
ORIC's training courses are designed for directors and members of Aboriginal and Torres Strait Islander corporations. Most courses bring people from different corporations together to maximise information sharing, networking opportunities, problem solving practice and the generation of ideas affecting Indigenous corporations and communities in a region.The Australian Indigenous Governance Institute (AIGI)
Provides resources, training and services to support self-determined governance capability for individuals, organisations, communities and First Nations in Australia. These resources are designed to improve social, cultural and economic outcomes for Indigenous peoples.Victorian Aboriginal Community Controlled Health Organisation (VACCHO)
VACCHO provides a range of services to its Member Aboriginal Community Controlled Organisations (ACCOs) to ensure they are strong, thriving, sustainable community-controlled organisations.National Aboriginal Community Controlled Health Organisation (NACCHO)
Provides workshops and specialised governance resources for ACCOs.