Following on from the previous blog in my series of the 10 things you need to know about not-for-profit governance – about Understanding Legislation and Regulations – this week we are going to explore the eighth area: Meeting the Standards.
When it comes to standards, it’s essential to ask yourself a few key questions:
Are there industry standards specific to your sector?
Are these standards mandatory or voluntary?
Is your funding (or something else important) contingent upon complying with these standards?
Understanding the answers to these questions is vital for effectively meeting your not-for-profit’s obligations and ensuring good governance within your organisation.
So, firstly, determine whether there are any industry or other standards that apply to your organisation.
Any standards will be critically important to your organisation’s governance, management, and operations, as they serve as benchmarks and guidelines for good practice, outlining the expectations and requirements for organisations operating within your sector.
These standards may cover areas such as service delivery, ethics, quality management, financial reporting, risk management, and data protection, among others.
If you don’t know what standards apply to your sector, or you think you might be missing something, speak to your government contact (if you have one), your funding body, and/or your sector’s peak body (or bodies).
These key stakeholders should be able to clarify the standards applicable in your sector.
Next, determine whether these standards are mandatory or voluntary.
Mandatory standards must be adhered to, and are generally a legal requirement. They are usually established by government or other regulatory bodies to ensure the protection of stakeholders and the integrity of the sector.
On the other hand, voluntary standards are guidelines that organisations can choose to adopt to demonstrate their commitment to best practice and continuous improvement. Look to other organisations and network with your sector peers to find out what voluntary standards others are adopting to demonstrate best practice.
One such example of voluntary standards is the Rainbow Tick which is a world first quality framework to help health and human services organisations become safe and inclusive for the LGBTIQ community.
Lastly, non-compliance can have severe repercussions. Non-compliance with legislated standards can put your organisation at risk of deregistration and defunding, while non-compliance with voluntary standards can result in reputational damage, strategic risks, and other negative consequences.
So, by prioritising compliance with the standards applicable to your organisation, you demonstrate your commitment to transparency, accountability, quality, and ethical practice, and you avoid the negative consequences associated with non-compliance.
Stay tuned for the next installment in my 10 things blog series, where I’ll explore another essential aspect of not-for-profit governance – Contracts and Agreements.
And if you’d like to catch up on the 10 things webinar, where I discuss all 10 of these essential elements of not-for-profit governance in more detail, you can check that out HERE – the passcode is 7A#AQMg*
If you think I can help you or your not-for-profit with YOUR good governance, do check out the supports and services I offer organisations HERE – and if you would like to book a discovery call with me, to discuss your needs, you can do that HERE.
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