Governance

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. 

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.

Social Services Standards

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.

See the Social Services Regulator website for more information, including how to meet and demonstrate compliance with this standard. 

Governance Standards

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.

Effective quality governance is fundamental to consistently delivering safe, effective, connected and person-centred community services. Developed by the Community Services Quality and Safety Office, the Community Services Quality Governance Framework sets the objective of safe, effective, connected and person-centred community services for everybody, every time.

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, funded and regulated by the Victorian Department of Families, Fairness and Housing. 

There are a number of other organisations and resources that funded organisations can use to strengthen their governance.

  • Learning and development resources

    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 which have implemented components of the Governance Capability Framework and have 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

  • Support for Aboriginal Community Controlled Organisations

    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. Although some courses or workshops are run with just one corporation or group at a time.

    The Australian Indigenous Governance Institute (AIGI)
    Provides resources, training and services support self-determined governance capability for individuals, organisations, communities and First Nations in Australia. They are designed to improve social, cultural and economic outcomes for Indigenous peoples.

    Victorian Aboriginal Community Controlled Health Organisation
    VACCHO provides a range of services to its Member Aboriginal Community Control Organisations (ACCOs) to ensure they are strong, thriving, sustainable community controlled organisations.

  • 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 fulfil 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.