From volunteer to executive: the governance journey
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Moving from a volunteer role to the position of secretary for one of Australia’s largest not-for-profit (NFP) organisations, Orr felt ill-equipped. Not only is Girl Guides Australia one of the most well-known and respected NFPs, the 102-year-old organisation was also undergoing a period of large-scale change, transitioning from an incorporated association structure to a company limited by guarantee. Orr realised she needed further governance training if she was to steer Girl Guides Australia through the onerous requirements of a company structure.
“Going from an association to a company structure was a very big step up for the Girls Guides,” says Orr.
“Governance in a NFP is completely different to a commercial entity. For a start, our workforce is made up primarily of volunteers. Although they may be 110 per cent engaged, they may not be the most appropriately skilled or able to commit significant amounts of time to their roles. Good governance is essential because it gives us the framework, policies and processes to keep the organisation cohesive and running smoothly despite these challenges.
“At the same time, NFPs must be fully accountable to our donors, members, suppliers and the communities we serve. Having exceptional governance ensures we deal with all our stakeholders professionally, transparently and responsibly.”
Despite her business experience and background as a legislative drafter, Orr felt she required further governance training. She says she had a good understanding of risk-management from running her own training business, but no specific knowledge of NFP management or corporations law issues, which led her to complete the Chartered Secretaries Australia (CSA) three-day intensive Certificate in Governance for NFPs.
With Federal Assistant Treasurer David Bradbury recently announcing the implementation of a two-stage reform process for the NFP sector, there is expected to be an emphasis on greater transparency and accountability.
“As the governance reforms are rolled out, it will increase expectations of the NFP sector as donors, volunteers and funding bodies have a greater line of sight into charities and other NFP organisations. We recognised that it will be challenging and that’s why we designed this course,” says CSA’s Policy Director Judith Fox.
“Our three-day course has been specifically designed to bring those responsible for the good governance of these organisations up-to-speed, cost efficiently and effectively.”
“The Girl Guides, like the rest of the NFP sector, is going through a period of rapid and significant change. I believe the Federal Government’s reforms to dramatically lift NFP governance standards are a fantastic opportunity for the sector to improve its performance. Implementing those changes will certainly be challenging for a sector that’s notoriously over-stretched and under-resourced, but there will be very positive outcomes in the long run. Girl Guides Australia is definitely on the right path,” she says.
Orr says CSA’s course gave her an understanding of what the company secretary’s role involved and made her aware, not only of her personal statutory obligations, but also those of the organisation operating as a company. “The course has helped me to cascade the right risk management, accountability and reporting frameworks throughout the organisation – from the national through to our state and local districts.
“By the end of CSA’s course, I was reeling from everything I’d learned, but confident I had the practical tools to step into my role. I knew what direction my organisation should be heading, how to apply my knowledge and skills, and what the organisational priorities should be.
“Being time-poor, like many working parents, I also valued the course’s intensive format and the option to study subjects online. And even though I’ve completed the course, CSA continues to support my professional development by connecting me to a network of peers and professionals with whom I can discuss common issues and challenges,” says Orr.
Now, as a Certificated Member of CSA, Orr enjoys benefits such as full access to the members’ only area of CSA’s website that has a vast array of information and practitioner documents to provide practical assistance and support to governance professionals. Certificated membership is available to all graduates of CSA’s three certificate iterations: Governance for NFPs, Governance and Risk Management, and Governance Practice. As a graduate of the course, Orr says her training and experience has allowed her to help other NFPs improve their governance.
“The NFP community is typically very generous in supporting one another, so I’ve been pleased to return the favour by sharing my governance knowledge and experience with other NFPs.”
