Following on from the previous blog in my series of the 10 things you need to know about not-for-profit governance – about Meeting Standards – this week we are going to explore the ninth area: Contracts and Agreements.
Contracts and agreements often involve the provision of funding, or other benefits, to our not-for-profit organisations, in exchange for the delivery of services.
Once entered into, these arrangements create a variety of obligations for the parties involved.
Failing to meet our obligations under our contracts and agreements can have serious consequences – including: poor outcomes for the intended beneficiaries of the services our organisation provides; loss of reputation for our organisation; loss of clients (existing or potential) coming to us for services; and even the possibility of the defunding of our organisation and potential closure.
So it is crucial that your organisation fully understands the requirements and the commitments outlined in the contracts and agreements it enters into.
If you are unsure about any aspect of the contracts and agreements presented to your organisation, make sure you seek appropriate legal advice from someone who understands your organisation and the sector in which you operate, before signing anything. A good legal professional, with industry knowledge, can review the terms, explain any complexities, and ensure that you have a clear understanding of your rights and responsibilities.
By understanding the requirements of any contracts or agreements, you can take the necessary steps to uphold your end of the deal. This could include: delivering services within specified timelines; meeting the required quality standards; reporting appropriately on the outcomes you have achieved with the resources provided; as well as adhering to any specific contractual provisions.
Obviously it is also essential to establish robust systems and processes within your organisation to ensure you can properly monitor and fulfill your obligations effectively as well.
By being diligent and proactive in understanding and meeting your contractual obligations, you can establish strong partnerships, ensure your organisation delivers high-quality services, and sustain the ongoing success and impact of your organisation has within its sector.
Stay tuned for the final installment in my 10 things blog series, where I’ll explore the last aspect of not-for-profit governance I discussed in the webinar – Policies and Procedures.
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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