2017 NFP Governance and Performance Study: Building long-term strength

This was a BaxterLawley report led by Penny Knight. Originally published on 5 September 2017 by AICD.

The NFP Governance and Performance Study highlights the key themes, challenges and opportunities currently facing the sector.

The 2017 edition of the study remains the largest survey of its kind in Australia with 2,000 survey respondents and dozens of directors involved in focus groups held across Australia. Participants in the research include directors and executives from a diverse variety of not-for-profit (NFP) organisations.

Download a copy of the report here.

Key findings

Culture front of mind but low on the agenda

• More than 70% said they would be very likely to recommend their organisation as a good place to work to family and friends.
• 52% said culture had not been formally on their board agenda in the past 12 months.

Risk management sophistication varies

• On balance, more directors felt their organisation was taking on too little (36%), rather than too much risk (20%).
• Only 41% of respondents said their board had a formal risk appetite statement.

Financial sustainability remains an issue

• Half of directors reported profit margins below inflation (2%)

Reputation taken for granted?

• 86% of directors rated the importance of their reputation as highly important.
• Only 41% of respondents said reputation is formally considered by the board and management when making all strategic and operational decisions.