In order for a board of directors to carry out their fiduciary duties for the organisation that they oversee, they need to be provided with a “board pack” for their board meetings which contains relevant, timely, up-to-date information in a digestible format. Expectations and accountability of boards have increased in recent years including those in the nonprofit sector. Hence, boards need to review the board reporting material they receive in their board packs to ensure that they receive the information that they require to make informed decisions.
Following their recent cross-sectorial research, new guidance for effective board reporting has been issued this year by ICSA: The Governance Institute (ICSA). Furthermore, the importance of identifying and reporting performance metrics has been recognised as a key area to be improved in board reporting and hence this is discussed below. Concentrating on the governance of nonprofit organisations in particular, we aim to benchmark the best-practice initiatives in; charity finances, regulatory requirements and performance reporting with reference to international guidance for nonprofit organisations.
Qualitative and quantitative research of Irish nonprofit organisation representatives was conducted wherein current strengths and weaknesses of board reporting were identified and investigated. The key findings from this survey, alongside the accompanying research, have been collated to create recommendations for an effective board pack compilation. Within these recommendations, there is a board pack table of contents, a board pack contents template and a practical checklist to help improve their board reporting process.
Boards must work effectively to ensure they govern the organisation properly. One of the key mechanisms for this is the board meeting.
Putting yourself forward for consideration or responding positively to an invitation to become a trustee of a charity is a very important and needed act of civic responsibility. The thousands of charities play a critical part in society’s response to a wide range of human needs.
Many are small groups surviving on very limited resources, but are tackling large problems. Through the passion, commitment and activities of these groups, a wide range of needed services and supports are delivered in areas such as health, social services, education, emergency relief, sports and culture. There are tens of thousands of people engaged daily in providing these services.
They are creating an untold quantum of public good – enhancing culture, health, recreation, social justice, and civil and human rights. They are performing roles and making contributions that for many are not recognised or properly valued. However, to run effectively and properly, they need 1,000s of people to step-up and become volunteer board members.