A strong governance structure helps not-for-profits lead effectively, make good decisions, and stay accountable. The lists below are designed as a quick reference you can use at board meetings or during your annual review to check that your governance is in good shape, and to spot areas for improvement.  

Your not-for-profit governance essentials

Start here to review the foundations of your governance structure.

1. Appoint a diverse and skilled board
   Bring together people with a mix of finance, legal, fundraising, and sector expertise, and reflect the community you serve.
2. Set term limits and create focused committees
   Keep ideas fresh and delegate key areas like finance, governance, and fundraising.
3. Hire a qualified executive director and build a supportive team
   Clear roles, good communication, and shared purpose create stronger leadership.
4. Establish clear policies
   Cover governance, finance, and HR, and make sure everyone understands their responsibilities.
5. Plan strategically and monitor progress
   Regularly review your goals, finances, and impact to stay aligned with your mission.
6. Engage with your stakeholders
   Communicate openly and invite feedback from your community, donors, and volunteers.
7. Commit to continuous improvement
   Encourage board and staff development and review governance practices each year.
8. Stay compliant
   Keep up to date with legal and reporting requirements for NFPs in New Zealand.

Governance health checklist

Once you’ve reviewed the essentials, use this quick checklist with your board to see where you’re tracking well and where there’s room to strengthen.

• Do we have a diverse board with term limits?
• Are committees established for key functions?
• Is there a qualified Executive Director in place?
• Are governance and financial policies documented?
• Do we have a strategic plan with measurable goals?
• Are stakeholder engagement strategies active?
• Is there a process for continuous improvement?
• Are we compliant with legal and regulatory requirements?

If you’d like a sounding board for your governance or audit questions, our team would be happy to chat. We work with NFPs of all sizes to strengthen governance, risk management, and reporting, in plain language and at your pace. 

To learn more about how we can help, visit our Not-for-Profit Audit Services page, or use the button below to start a conversation with your friendly BVO Audit team.